Question 1

How is ownership of a mutual insurance company evidenced?

Options :

A : ownership of stock

B : bonds of the company

C : ownership of a policy

D : certificate of deposit

Answer: C

Question 2

Which of the following is NOT a right of the life insurance policyowner?

Options :

A : Assign or transfer the policy.

B : Borrow from the cash values.

C : Select and change a beneficiary.

D : Revoke an absolute assignment.

Answer: D

Question 3

An alien insurer is which one of the following?

Options :

A : One formed under the laws of Oklahoma.

B : One formed under the laws of a state other than Oklahoma.

C : One formed under the laws of a country other than the United States of America.

D : One formed under the laws of a state geographically bordering Oklahoma.

Answer: C

Question 4

Which of the following BEST describes a waiver of premium clause in a typical disability policy?

Options :

A : The waiver of premium benefit pays the policy premium during a disability claim.

B : This clause eliminates any premium being paid for the lifetime of the insured individual.

C : The monthly benefit under the policy is reduced to offset the premium that is no longer being paid.

D :

This clause generally begins immediately with the doctor stating that the insured person is completely disabled.

Answer: A

Question 5

Laura has a group medical plan that has an 80% coinsurance provision but no deductible. She recently incurred a $1,000 medical bill. How much will Laura have to pay?

Options :

A : $0

B : $200

C : $800

D : $1,000

Answer: B