Life, Accident, and Health (LAH) Insurance Mastery Practice Exam

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• Which type of insurance covers expenses related to professional services due to injury or illness?
• Among the premium payment modes, which one is typically the least expensive for a policyowner?
• How can total ownership of a life insurance policy be fully transferred?
• All of the following statements are true regarding modified endowment contracts (MECs) EXCEPT
• What type of policy likely covers expenses incurred from in-hospital treatment as well as some outpatient expenses?
• What is a key characteristic of term life insurance?
• Explain "network" in health insurance terms.
• When must the Buyer's Guide to Life Insurance be provided to an applicant?
• Which factor typically does NOT influence life insurance premium rates?
• What is typically the main purpose of a life insurance policy?
• Which type of life insurance policy combines protection features with cash value growth potential?
• What is the main characteristic of term life insurance?
• What does the accumulation period refer to in whole life insurance?
• Which insurance policy type offers savings that grows over time?
• Which type of term insurance is designed to provide coverage for a decreasing debt, such as a mortgage?
• What must an agent do to renew their license?
• If a producer offers to refund part of a prospect's premium in exchange for purchasing life insurance, what unfair practice is this called?
• Which provision is NOT included under the Uniform Individual Accident and Sickness Provisions Law in health insurance policies?
• What is the function of a "health maintenance organization" (HMO)?
• What does controlled business refer to in insurance?
• What is the maximum number of days of skilled nursing facility care for which Medicare will pay?
• Self-insurance is an example of which type of risk management?
• Long Life Insurance Company insures substandard risks. Which of the following will it employ to compensate for the higher death rates it expects?
• What does a long-term care policy typically cover?
• Which standard nonforfeiture option converts a whole life policy's surrender value into a paid-up policy?
• Which type of policy is NOT subject to the life insurance replacement laws?
• What is the primary difference between "life insurance" and "health insurance"?
• Define "out-of-pocket maximum."
• Which of the following best describes the term "underwriting" in insurance?
• What does an exclusion in an insurance policy refer to?
• What defines a group disability policy that Wanda paid for fully?
• Which of these statements regarding Medicare is correct?
• What does an accelerated death benefit allow policyholders to do?
• In a noncontributory plan, when the premium is paid by the sponsor (employer), what percentage of eligible employees must participate in the plan?
• What is the primary purpose of a disability income policy?
• What is the tax status of benefits received from a medical expense plan?
• What must a long-term care policy include regarding renewability?
• What does "open enrollment" mean in health insurance?
• Which statement describes the probationary period in a health insurance policy?
• In health insurance, which of the following is commonly excluded from coverage?
• How does age affect life insurance premiums?
• Which expenses does health insurance primarily cover?
• An insurer's license to transact insurance business in the state is called
• What typically influences the premium of a health insurance plan?
• If an employee is eligible for group insurance, what is a requirement they must fulfill?
• What is meant by the "contestability period" in a life insurance policy?
• Suitability in the insurance context refers to what action?
• Which definition of total disability is most favorable to the insured?
• Which statement is TRUE regarding life policy replacement?
• What typically happens if a policyholder fails to pay their insurance premium?
• Which type of annuity cannot be funded under any circumstances?
• What does "cash value" refer to in a whole life insurance policy?
• Define "coinsurance."
• If Wanda paid 100% of her group disability premiums, what percentage of her benefits would be tax free?
• What provision must a long-term care insurance policy contain?
• What is the benefit period in disability insurance?
• In the context of insurance, what is a claim?
• What does "premium assistance" under the ACA provide?
• Which provision in health insurance policies deals with age misstatement?
• What does the term 'conservation' refer to in insurance?
• What is the primary role of the National Association of Insurance Commissioners (NAIC)?
• What type of insurance pays benefits in the event of accidental death or severe injury resulting in dismemberment?
• Which rider requires total disability before it becomes effective?
• Which of the following statements is TRUE regarding life policy dividends?
• Which type of life insurance provides coverage for a set period of time?
• What unfair trade practice did Alan commit by representing his company's financial strength with outdated information?
• When is a group life insurance plan considered noncontributory?
• What does a life insurance contract's insuring clause express?
• What is the main advantage of a single premium deferred annuity?
• What does COBRA allow for insured individuals who have terminated employment with a group sponsor?
• Which policy is likely to have a fixed premium for the duration of its coverage?
• Which insurance policy provides benefits as long as the insured is alive?
• The Fair Credit Reporting Act plays a central role in which of the following aspects of the application process?
• What is the correct response regarding the probationary period in health insurance?
• What is the penalty for early withdrawals from an IRA or qualified retirement plan?
• In what circumstance could an insurer deny a claim during the contestability period?
• Which of the following could be a reason for terminating an insurance policy?
• What does "coinsurance" refer to in health insurance plans?
• For an additional premium, a rider can be added to a life insurance policy that makes some of the cash value available to pay for long-term care expenses. This is known as?
• Which retirement plan requires a minimum distribution at age 70½?
• In a group life insurance plan, who receives the Certificate of Insurance?
• What factor can impact the cost of life insurance premiums?
• What does a life insurance policy that is fully paid-up mean?
• Which type of life insurance provides coverage for a specific period?
• If Sue's daily benefit under her long-term care policy is $150 per day and her nursing home charges are $100 per day, what will happen?
• Which statement is TRUE regarding the replacement of health insurance policies?
• Which type of insurance is designed specifically for costs incurred due to medical expenses?
• Which characteristic is NOT typically considered by underwriters when evaluating group insurance?
• An insurer incorporated in Canada but doing business in California is classified as what type of insurer?
• Which of the following statements regarding annuities is FALSE?
• What does HIPAA require health insurers to do?
• Which term describes the assurance that a life insurance policy will remain in force even if premiums are not paid for a certain period?
• The Gramm-Leach-Bliley Act requires what from insurance companies?
• What is one of the main purposes of conservation in insurance?
• What unfair practice involves circulating malicious statements about an insurer's financial condition?
• What type of distributions are required for Traditional IRAs?
• What is typically required for an insurance company to pay an accidental death benefit?
• Under the Fair Credit Reporting Act, which of the following is NOT a consumer right?
• Which of the following is NOT a valid way a policy may be issued?
• In risk management, what does the term "transfer" refer to?
• Carol wants her annuity settlement to guarantee that the entire annuity principal amount will be paid out. What should she choose?
• In what instance might a policyholder utilize the cash value in a whole life insurance policy?
• What significant feature distinguishes adjustable life insurance?
• Which factors can influence accident insurance premiums?
• An agent who evaluates an applicant's financial needs and goals is adhering to what?
• Which of the following policies pays a fixed hospital benefit directly to the insured, regardless of the actual hospital expenses incurred?
• What does variable life insurance allow policyholders to do?
• A cease and desist order is?
• What is the primary purpose of underwriting in insurance?
• What does the Fair Credit Reporting Act require insurers to do when using a third-party source?
• Which type of report includes information about an applicant's character and lifestyle?
• Skilled nursing care means
• What is renewable term insurance?
• What is typically required to qualify for long-term disability insurance benefits?
• Which of the following situations describes an instance of unfair discrimination?
• What happens if there is a misstatement of age in an insurance contract?
• What is the term used when cash value is applied by the insurer to prevent a lapse in a whole life insurance policy?
• Who is responsible for applying for and maintaining a group life insurance policy?
• What is the purpose of subrogation in insurance?
• What does insurable interest require from a policyholder?
• Which method is the most common approach used with disability income policies when an impairment is indicated?
• How are premiums and benefits of individual life insurance generally taxed?
• Which of the following affects the deductibility of contributions made to a traditional IRA?
• In an employer-paid group disability policy with a $2,000/month benefit, which statement is CORRECT?
• How is "evidence of insurability" typically defined?
• Each of the following is a personal use of life insurance proceeds EXCEPT
• Premiums paid on an individual disability income insurance policy are
• An insurance industry source of information about a proposed insured's medical information for underwriting is called the?
• The core policy (Plan A) developed by the NAIC as a standard Medicare supplement policy includes all of the following EXCEPT?
• Which of the following is NOT a managed care hospital cost containment strategy?
• Which rider provides for an automatic increase in benefits to offset inflation?
• An annuity that guarantees a minimum rate of return is?
• What is an insurance policy's grace period?
• What is the term for the time during which funds are paid into an annuity?
• What is the key characteristic of guaranteed renewable disability income insurance?
• In health insurance, what is a copayment?
• Which statement is NOT true regarding Roth IRAs?
• What is the significance of the cash value component in permanent life insurance?
• What does "underwriting" refer to in the context of insurance?
• With an optionally renewable policy, the company reserves the right to?
• How does moral hazard affect insurance coverage?
• What is the purpose of elimination (waiting) periods in disability income policies?
• How are group health insurance premiums paid by the employer classified for tax purposes?
• What is generally true about employer-paid premiums for group policies?
• Which of the following statements about qualified retirement plans is NOT correct?
• What happens if a policyholder returns a term life policy within the free look period?
• If an applicant has a problem with calcium deposits on the knee, the insurance company will most likely do which of the following?
• What defines a health policy's free-look period?
• With a conditional life insurance receipt, when does coverage start?
• Which statement about an adjustable life policy is TRUE?
• For insuring a home mortgage with life insurance economically, which type of insurance is most suitable?
• Which provision includes the insurance company's promise to pay the claim?
• What is a "pre-existing condition" in health insurance?
• What type of annuity provides a guaranteed interest rate during accumulation?
• What best describes a group life insurance policy?
• What is a group dental plan that allows insureds to visit any dentist called?
• Liz purchases an immediate annuity. The annuity contract must be a
• Which of the following private insurance carriers has a contractual relationship with doctors and hospitals?
• Dental and vision coverages are most commonly included in which type of health policies?
• All of the following statements regarding specialized forms of life insurance are correct EXCEPT?
• Which statement regarding policy dividends is NOT true?
• What is the primary benefit of a tax-deferred health savings account?
• When may an elimination (waiting) period NOT be imposed in disability income insurance?
• What is one common characteristic of whole life insurance?
• Funds set aside by an insurer to pay future claims are called
• What is the main purpose of a rider in an insurance policy?
• What is temporary insurance in the context of life insurance?
• Which of the following allows employees to elect to reduce their current salaries by deferring amounts into a retirement plan?
• When are insured losses covered immediately after a policy is reinstated?
• A voluntary relinquishment of a known right is known as what?
• If Larry wants to use part of his whole life policy's cash value without giving it up, what is the best advice?
• Who controls the content and distribution of insurance policy advertisements?
• What is the main goal of the Affordable Care Act (ACA)?
• What is a permanent waiver of premium rider?
• In the context of group insurance, what does 'master policy' refer to?
• Which of the following best describes dread disease policies?
• Which rider allows for the use of death benefit proceeds prior to the death of an insured for non-hospital confinement after a major stroke?
• What type of insurance policy provides coverage for specific losses before the deductible is met?
• What does premium payment frequency refer to?
• Which health insurance policy type would require the most comprehensive underwriting?
• Which of the following does the Medicare Advantage program NOT provide to beneficiaries?
• What is the typical time limit for the incontestability period in most states?
• In life insurance, what is a "beneficiary"?
• Who is NOT required to sign an application for life insurance?
• What factor would NOT be considered during the underwriting of a health insurance risk?
• What defines term insurance?
• Which of the following individuals does NOT have to sign an application for a life insurance policy?
• What is a "rider" in insurance policies?
• What does a person typically need to provide for a health insurance policy to be valid?
• When would a misstatement on a health application void the contract?
• What is the primary focus of disability income insurance?
• Which of the following would NOT be part of the duties of the state Insurance Commissioner?
• What distinguishes a "preferred provider organization" (PPO) from an HMO?
• What does a "waiver of premium" rider allow policyholders to do?
• Which of the following is NOT true regarding straight life annuities?
• Which of the following statements about contributions to a qualified plan is CORRECT?
• What is critical illness insurance designed to provide?
• Which of the following individuals must have an insurable interest in the insured?
• COBRA (the Consolidated Omnibus Budget Reconciliation Act) requires?
• Which of the following are the two main types of life insurance?
• When does an underwriter assess the risk of a health insurance applicant?
• Which of the following is the settlement option of a life policy that provides periodic payments of a specified amount as long as the proceeds plus interest last?
• All of the following types of plans are reserved for smaller employers EXCEPT?
• All of the following are considered unfair trade practices EXCEPT?
• What does short-term disability insurance offer?
• Which type of health insurance provider is most commonly associated with pre-paid plans?
• In health insurance, what does the term "exclusion" refer to?
• Which financial method is considered a strategy for cost containment in managed care?
• What is "permanent life insurance"?
• Which type of policy typically allows for loans against its cash value?
• What is a common feature found in health insurance policies?
• What does "face value" refer to in a life insurance policy?
• Which of the following is NOT an optional health insurance policy provision?
• What is the primary role of an insurance agent?
• What generally determines the benefits provided under a life insurance policy?
• What is the primary purpose of long-term disability insurance?
• Under a medical expense policy, which of the following is typically covered?
• What type of assignment involves partial transfer of rights to an insurer?
• How does universal life insurance differ from whole life insurance?
• What does the term "premium" signify in life insurance?
• What does "guaranteed issue" mean in life insurance?
• Which of the following terms describes an insurance company that has been organized outside the United States or its possessions?
• What is the primary purpose of life insurance?
• Which type of health insurance is guaranteed to be available under a group health contract?
• The longer the benefit period of a disability income policy
• What is a principal function of annuities?
• A major benefit of owning a whole life insurance policy is
• What is a health reimbursement arrangement (HRA)?
• If Andrew decides to return his individual health policy within the free-look period, what will the insurer do?
• An insured has a disability income policy with a change of occupation provision. What is the insurance company’s likely action if the insured changes to a less hazardous occupation without notification?
• What is a key feature of Blue Cross/Blue Shield insurance?
• What does it mean for a policy to be "underwritten"?
• In a contributory plan, what percentage of eligible employees must participate when the premium is shared?