Question 1

An individual who is NOT acceptable by an insurer at standard rates because of health, habits, or occupation is called a

Options :

A : rating risk.

B : standard risk.

C : preferred risk.

D : substandard risk.

Answer: D

Question 2

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 3

The insured is dissatisfied with the handling of a claim. How long does the insured have to bring a lawsuit against the insurer?

Options :

A : 1 year

B : 3 years

C : 5 years

D : 7 years

Answer: C

Question 4

Which life insurance rider is designed to permit young individuals to be able to purchase additional insurance as they grow older, regardless of insurability?

Options :

A : Cost of living rider.

B : Guaranteed insurability rider.

C : Impairment rider.

D : Multiple indemnity rider.

Answer: B

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