National 2023 Life & Health

A policyowner returned a newly issued policy one week after the policy was delivered by the producer and received a refund of all premiums paid. Which of the following policy sections covers the situation described?

• A. Consideration clause

• B. Grace Period Provision

• C. Incontestable period provision

• D. Free Look provision

An employee who owns an individual Disability Income policy is injured in an automobile accident and files Proof of Loss with the insurance company. Under the Payment of Claims provision in the policy, the company will likely pay the policy benefits to the:

• A. insured's employer

• B. insured's attending physician if the insured has assigned the benefits

• C. over-utilization of medical services

• D. insured

Which of the following is TRUE of life settlements?

• A. They are the same as Accelerated Death Benefits

• B. Any insured is eligible to enter into one.

• C. They involve a change of owner and beneficiary.

• D. Only terminally ill insureds can be considered one

A major medical policy insured is injured in an auto collision during a police chase. The occupants in the police car are killed. The insured is convicted of reckless driving and manslaughter. If the insured files a claim, the insurance company will MOST likely take which of the following actions?

• A. Pay full benefits

• B. Pay partial benefits

• C. Deny the claim only

• D. Deny the claim and return the premiums paid

A producer must deliver an Outline of Coverage to a prospective insured who is eligible for Medicare at which of the following times?

• A. Before the application is taken

• B. After the application is signed

• C. When the policy is delivered

• D. When the prospect requests it.

R, a self-employed stockbroker, becomes totally disabled on January 1 and receives $1,500 a month for the next twelve months from her own individual disability income policy, for which she had paid the premium. How much of this income is subject to federal income tax?

• A. $18,000

• B. $12,800

• C. $9,000

• D. $0

The purpose of the USA PATRIOT Act is to:

• A. Detect criminal activity

• B. encourage patriotism among producers

• C. require a licensed producer to swear to uphold the commission

• D. authorize insurance companies to order credit checks on their producers

The Z Company takes out a Key Employee policy on its director of operations. Several years later, the employee leaves the Company, joins A company and is killed in an automobile accident while the Key Employee policy is still in force. In the insurance company will pay the proceeds to which the following entities?

• A. The insured's estate

• B. A company

• C. Z company

• D. The insured's spouse

Which of the following policy provisions is designed to protect the insurance company from adverse selection by certain high applicants?

• A. Nonforfeiture options

• B. Suicide clause

• C. Grace period

• D. Settlement options

Which of the following statements is CORRECT about the benefits of a group Short-term Disability Income policy?

• A. They are not payable for accidents covered by Workers' Company.

• B. They are payable for accidents covered by Workers' Compensation benefits

• C. They are payable when expenses exceed Workers' Compensation benefits.

• D. They are payable when expenses are less than Workers' Compensation