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- State Exam Simulator - 150 Practice
Exam Questions / Actual Test Questions
with Detailed Verified Answers / Already
Graded A, 2025 / 2026.
_____________Quiz____________? T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive? -
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_____________Quiz____________? K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true? -
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Proceeds will be paid to K's estate if P dies within a specified time _____________Quiz____________? A level premium indicates -
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the premium is fixed for the entire duration of the contract _____________Quiz____________?
Which premium schedule results in the lowest cost to the policyowner? -
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Annual _____________Quiz____________? A policyowner is allowed to pay premiums more than once a year under which provision? -
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Mode of Premium _____________Quiz____________? A life insurance application must be signed by all of these EXCEPT -
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beneficiary _____________Quiz____________? Any changes made on an insurance application requires the initials of whom? -
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Applicant _____________Quiz____________? All of these are considered sources of underwriting information about an applicant EXCEPT -
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Rating Services _____________Quiz____________? P is a producer who notices 5 questions on a life application were not answered. What actions should P take? -
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Disability Income _____________Quiz____________? P is a Major Medical policyowner who is hospitalized as a result of injuries sustained from participating in a carjacking. How will the insurer most likely handle this claim? -
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Claim will be denied _____________Quiz____________? A Disability Income policyowner suffers a disability which was due to the same cause as a previous disability. Both disabilities occurred within a five-month period. The insurer may cover the second disability without a new elimination period under the -
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Recurrent Disability provision _____________Quiz____________? Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance? -
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Entire cash surrender value is taxable _____________Quiz____________? Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan? -
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Collateral assignment _____________Quiz____________?
What does the insuring agreement in a Life insurance contract establish? -
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An insurer's basic promise _____________Quiz____________? F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule. What kind of policy is needed? -
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Decreasing term policy _____________Quiz____________? What action should a producer take if the initial premium is NOT submitted with the application? -
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Forward the application to the insurer without the initial premium _____________Quiz____________? On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently taken place with the doctor. What action should the producer then take? -
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Collect initial premium along with a signed health statement _____________Quiz____________? What is being delivered during a policy delivery? -
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Insurance contract to the proposed insured
_____________Quiz____________? An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a -
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$25,000 individual whole life policy _____________Quiz____________? Which provision is NOT a requirement in a group life policy? -
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Accidental _____________Quiz____________? The most important factor to consider when determining whether to convert term insurance at the insured's attained age or the insured's original age is -
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the cost _____________Quiz____________? S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation? -
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Single Premium _____________Quiz____________? The annuity that represents the largest possible monthly payment to an individual annuitant is a(n) -
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Straight Life annuity
_____________Quiz____________? Which of these statements concerning an Individual Straight Life annuity is accurate? -
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Payments are made to an annuitant for life _____________Quiz____________? What is considered to be a characteristic of an immediate annuity? -
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Benefit payments start within one payment period of purchase _____________Quiz____________? What is Old Age and Survivors Health Insurance (OASDHI) also known as? -
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Social Security _____________Quiz____________? Which of these retirement plans can be started by an employee, even if another plan is in existence? -
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Individual Retirement Account (IRA) _____________Quiz____________? Which plan is intended to be used by a sole proprietor and the employees of that business? -
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Keogh Plan _____________Quiz____________?
When determining the monthly benefit amount for a Disability Income policy, the factor that limits the amount a prospective insured may purchase is -
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income _____________Quiz____________? Which type of contract liquidates an estate through recurrent payments? -
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Annuity _____________Quiz____________? Which of these do NOT constitute policy delivery? -
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Policy issued with a rating _____________Quiz____________? P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to -
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P only _____________Quiz____________? What type of renewability guarantees premium rates and renewability? -
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Guaranteed renewable _____________Quiz____________?
If an insurance company issues a Disability Income policy that it cannot cancel or for which it cannot increase premiums, the type of renewability that best desribes this policy is called -
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noncancellable _____________Quiz____________? A Disability Income policyowner recently submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury occurred before the application was taken 5 years prior. The neck injury was never disclosed to the insurer at the time of application. How will the insurer handle this claim? -
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Claim will be paid and coverage will remain in force _____________Quiz____________? T files a claim on his Accident and Health policy after being treated for an illness. The insurance company believes that T misrepresented his actual health on the initial insurance application and is, therefore, disputing the claim's validity. The provision that limits the period during which the company may dispute a claim's validity is called -
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Time Limit on Certain Defenses _____________Quiz____________? Which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for a Disability Income policy? -
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Issue the policy with an altered Time of Payment of Claims provision _____________Quiz____________? Which of the following are NOT managed care organizations? -
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Submit the claim in any form _____________Quiz____________? Which health policy clause stipulates that an insurance company must attach a copy of the application to the policy to ensure that it is part of the contract? -
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Entire Contract _____________Quiz____________? The policy provision that entitles the insurer to establish conditions the insured must meet while a claim is pending is -
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Time Limit on Certain Defenses _____________Quiz____________? The provision that defines to whom the insurer will pay benefits to is called -
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Payment of Claims _____________Quiz____________? When an insurance company sends a policy to the insured with an attached application, the element that makes the application part of the contract between the insured and the insurer is called the -
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Entire Contract provision _____________Quiz____________?
An IRA owner can start making withdrawals and NOT be subjected to a tax penalty beginning at what age? -
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_____________Quiz____________? Which statement regarding third-party ownership of a life insurance policy is true? -
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It is used extensively in estate-planning as well as business circumstances _____________Quiz____________? Which statement regarding a Key Employee Life policy is NOT true? -
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The beneficiary is named by the key employee _____________Quiz____________? An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the -
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Fair Credit Reporting Act _____________Quiz____________? Which of these provisions require proof of insurability after a policy has lapsed? -
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Reinstatement _____________Quiz____________?
What must the policyowner provide to the insurer for validation that a loss has occurred? -
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Proof of Loss _____________Quiz____________? If an individual has an Accidental Death and Dismemberment policy and dies, an autopsy can be performed in all these situations EXCEPT -
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When the state prohibits this by law _____________Quiz____________? Which of the following statements about a Guaranteed Renewable Health Insurance policy is CORRECT? -
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Premiums normally increase at time of renewal _____________Quiz____________? All of these statements about the Waiver of Premium provision are correct EXCEPT -
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Insured must be eligible for Social Security disability for claim to be accepted _____________Quiz____________? Which of the following statements is CORRECT about accelerated death benefits? -
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Must have a terminal illness to qualify _____________Quiz____________? With Optionally Renewable Health policies, the insurer may -
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review the policy annually and determine whether or not to renew it _____________Quiz____________? How do life insurance companies handle cases where the insured commits suicide within the contract's stated Contestable period? -
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Claims are denied under the Suicide clause of the policy _____________Quiz____________? A Hospital/Surgical Expense policy was purchased for a family of four in March of 2013. The policy was issued with a $500 deductible and a limit of four deductibles per calendar year. Two claims were paid in September 2013, each incurring medical expenses in excess of the deductible. Two additional claims were filed in 2014, each in excess of the deductible amount as well. What would be this family's out-of-pocket medical expenses for 2013? -
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_____________Quiz____________? N is a student pilot with a large life insurance policy. Which of these features would limit the insurer's obligation in the event N was killed while flying as a student pilot? -
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Exclusion _____________Quiz____________? How are policyowner dividends treated in regards to income tax? -
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Interest on accumulations is taxed
Which of the following health insurance policy provisions specifies the health care services a policy will cover? -
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Insuring clause _____________Quiz____________? Which of the following provisions specifies how long a policyowner's health coverage will remain in effect if the policyowner does not pay the premium when it is due? -
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Grace Period _____________Quiz____________? Which of the following statements BEST defines usual, customary, and reasonable (UCR) charges? -
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The maximum amount considered eligible for reimbursement by an insurance company under a health plan _____________Quiz____________? How are surrender charges deducted in a life policy with a rear-end loaded provision? -
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Deducted when the policy is discontinued _____________Quiz____________? Which of the following types of health coverage frequently uses a deductible? -
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Major Medical policy _____________Quiz____________?
D was actively serving in the Marines when he was killed in an automobile accident while on leave. His $100,000 Whole life policy contains a War Exclusion clause. How much will D's beneficiary's receive? -
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The full face amount _____________Quiz____________? Which of these options can an individual use their medical flexible spending account to pay for? -
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Prescription drugs _____________Quiz____________? In a Life insurance contract, an insurance company's promise to pay stated benefits is called the -
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Insuring clause _____________Quiz____________? Major Medical policies typically -
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contain a deductible and coinsurance _____________Quiz____________? What does the ownership clause in a life insurance policy state? -
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Who the policyowner is and what rights the policyowner is entitled to _____________Quiz____________?
