Insurance Quiz (MCQs)
A) Partially taxable income
B) Non-taxable income
C) Taxable income
D) Conditionally taxable income
| Correct Answer: C) Taxable income |
A. Allows payor to assign ownership in the event payor becomes disabled
B. Allows payor to increase face amount without providing evidence of insurability
C. Premiums are waived if juvenile becomes disabled
D. Premiums are waived if payor becomes disabled
| Correct Answer: D. Premiums are waived if payor becomes disabled |
A) A contract that requires certain conditions or acts by the insured individual
B) A contract that has the potential for the unequal exchange of consideration for both parties
C) A contract where one party “adheres” to the terms of the contract
D) A contract where only one party makes any kind of enforceable contract
| Correct Answer: A) A contract that requires certain conditions or acts by the insured individual |
A) member’s claims history
B) member’s current age
C) member’s pre-existing condition
D) member’s part-time employment status
Correct Answer: D) member’s part-time employment status
A. Rebates are allowed if it’s in the best interest of the client.
B. Rebates are only allowed if specifically stated in the policy.
C. Rebating can be anything of economic value, given as an inducement to buy.
D. Dividends are not considered to be rebates.
Correct Answer: A. Rebates are allowed if it’s in the best interest of the client.
a) Substandard applicants are never declined by underwriters.
b) Substandard applicants are occasionally declined by underwriters.
c) Preferred risk applicants typically have better premium rates than standard risk applicants.
d) An applicant can be classified as a substandard risk because of a hazardous job.
Correct Answer: a) Substandard applicants are never declined by underwriters.
An Agent’S License Can Be Suspended Or Revoked By writing primarily controlled business. In violation of state or federal regulations, an agent’s license can be suspended or revoked.
Drug sales or distribution are controlled business practices, such as selling or distributing prescription drugs or illicit drugs. As controlled business practices are considered unethical and illegal in the insurance industry, they can result in criminal charges and license revocation. In order to maintain their license and credibility in the industry, agents must adhere to all laws and regulations.
In addition, the regulatory body for the real estate industry may suspend or revoke an agent’s license if they engage in unethical or illegal practices.
There are several practices that can be considered fraudulent, misrepresentative, or unprofessional when negotiating a real estate transaction. Agents whose licenses are suspended or revoked cannot practice real estate and need to reapply for a license in order to resume working in the industry.
A) premium past due
B) method of payment
C) frequency of the premium payment
D) premium paid
Correct Answer: C) frequency of the premium payment
A. The beneficiary can only be changed with the consent of the insurer
B. The policyowner can change the beneficiary
C. The insured can change the beneficiary
D. A beneficiary change is subject to underwriting procedures
Correct Answer: B. The policyowner can change the beneficiary.
A. Person designated by the insured to receive policy proceeds in the event that the primary beneficiary dies before the insured.
B. Person designated by the primary beneficiary’s executor to receive policy proceeds.
C. Person designated by the state to receive policy proceeds in the event that the primary beneficiary dies.
D. Person designated by the insurance comapany to receive policy proceeds in the event that the primary beneficiary dies.
Correct Answer: A. Person designated by the insured to receive policy proceeds in the event that the primary beneficiary dies before the insured.
A. chairman of the board
B. bondholders
C. stockholders
D. policyholders
Correct Answer: D. policyholders
Options:
| A) investment premiums B) division of risk C) cash value coverage. D) premium earnings |
The Correct Answer Is: