Question 1

The total premium paid by a life policy owner for one policy year is

Options :

A : the same regardless of the frequency of payment.

B : less when paid quarterly than if paid semiannually.

C : greater if the premium is paid semiannually rather than annually.

D :

based on the assumption that the insured will pay policy premiums at the end of the policy year in one payment; if paid earlier in the policy year, a discount will be allowed.

Answer: C

Question 2

A Hospital Confinement Indemnity insurance policy pays

Options :

A : the amount of the actual hospital expenses.

B : 100% of the covered medical expenses less the deductible and coinsurance percentage.

C : an indemnity to the insured for all expenses incurred when the insured is confined in a hospital.

D : the daily benefit dollar amount stated in the policy for each day the insured is confined ina hospital.

Answer: D

Question 3

The guaranteed insurability option provides the ability to

Options :

A : waive premium payments in the event of disability.

B : purchase additional insurance regardless of insurability.

C : access a portion of the death benefit in the event of serious illness.

D : double the amount of the death benefit in the event of accidental death.

Answer: B

Question 4

The theory of probability is applied to life insurance through the use of

Options :

A : morbidity tables.

B : mortality tables.

C : the needs approach.

D : the human life value approach.

Answer: B

Question 5

What is the first step in submitting Medicare claims?

Options :

A : The patient submits expenses to Medicare.

B : The medical provider submits expenses to Medicare.

C : The medical provider submits expenses to the patient.

D : Medicare submits expenses to the Medicare supplement provider.

Answer: A