Life and Accident and Health or Sickness Producer - Combo Series 20-30 (Life-and-Accident-and-Health-or-Sickness-Producer-Combo) Free Practice Test

Question 1

Which of the following is commonly used to structure the payment of liability insurance settlements, lottery winnings, and other large sums?

A. An immediate annuity

B. A 403(b) tax-sheltered annuity

C. An individual retirement account

D. A modified endowment contract

Correct Answer: A

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Question 2

In determining the payment of accelerated life insurance benefits, all of the following are considered activities of daily living EXCEPT:

A. Eating

B. Bathing

C. Dressing

D. Speaking

Correct Answer: D

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Question 3

Replacing an existing life insurance policy with a new one may result in:

A. An illegal transaction

B. Capital gains taxation

C. Surrender costs

D. Small business taxation

Correct Answer: C

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Question 4

An elimination period in a disability income insurance policy is the:

A. Time period the policy is in force

B. Same as the probationary period

C. Time during which benefits are paid under the policy

D. Period between the start of a disability and the beginning of benefits

Correct Answer: D

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Question 5

Reasonable and customary charges for health care are based primarily on:

A. Insurance industry studies

B. Actuarial tables

C. National physician surveys

D. Average charges within a geographic area

Correct Answer: D

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Question 6

The needs approach to personal life insurance planning includes the creation of an emergency reserve fund.
This fund is designed primarily to:

A. Cover the cost of unexpected expenses

B. Pay off an existing mortgage

C. Provide retirement income

D. Pay for college tuition and books

Correct Answer: A

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Question 7

The life insurance buyer ' s guide includes information about all of the following EXCEPT how to:

A. Compare life insurance policy rates

B. Take civil action against an insurer

C. Compare life insurance policy requirements

D. Decide how much life insurance to buy

Correct Answer: B

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Question 8

How does the payment of an accelerated benefit affect a life insurance policy?

A. It increases the policy premium.

B. It decreases the grace period.

C. It decreases the death benefit.

D. It increases the cash value.

Correct Answer: C

Question 9

(If a producer misleads or fails to adequately disclose the title and true nature of a policy offered to a potential insured, it may be considered:)

A. Coercion

B. Unfair discrimination

C. Misrepresentation

D. Defamation

Correct Answer: C

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Question 10

In a deferred annuity, which event initiates benefit payments to the annuitant?

A. The contract is annuitized

B. A cash refund is paid

C. The contract is surrendered

D. The beneficiary dies

Correct Answer: A

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Insurance Licensing Life and Accident and Health or Sickness Producer - Combo Series 20-30 (Life-and-Accident-and-Health-or-Sickness-Producer-Combo) Free Practice Test