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Life, Accident and Health Exam Questions and Answers Latest Version Already Passed
What does an accidental death benefit rider do?✔✔ Pays an additional benefit if the insured dies due to an accident
Why is the “contestability period” important in life insurance?✔✔ It allows the insurer to investigate and deny claims based on misstatements within a certain time frame
What does “renewable term insurance” mean?✔✔ The policy can be renewed at the end of the term without new evidence of insurability
What is a “waiver of premium” rider in health insurance?✔✔ It waives premium payments if the insured becomes disabled
How does disability income insurance help the insured?✔✔ It replaces a portion of income lost due to a disabling injury or illness 1 / 4
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What is the “elimination period” in disability insurance?✔✔ The waiting time before benefits begin after a disability occurs
Why are “exclusions” included in accident and health insurance policies?✔✔ To specify conditions or causes of loss that are not covered by the policy
What does the term “insured” mean in an accident insurance policy?✔✔ The person whose health or life is protected by the policy
What is the difference between “accident” and “sickness” coverage in health insurance?✔✔ Accident coverage pays for injuries from unexpected events; sickness coverage pays for illnesses
What is the purpose of a “beneficiary” designation in life insurance?✔✔ To identify who will receive the death benefit after the insured’s death
What is a “policy loan” in whole life insurance? 2 / 4
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✔✔ A loan taken against the policy’s cash value
What does “underwriting” mean in accident and health insurance?✔✔ The process of evaluating risk and deciding whether to insure an applicant
How does a “health savings account (HSA)” complement health insurance?✔✔ It allows the insured to save money tax-free to pay for qualified medical expenses
What is the function of “coordination of benefits” in health insurance?✔✔ To prevent duplication of payment when a person has coverage under more than one plan
Why might a policyholder choose a higher deductible in health insurance?✔✔ To lower the premium cost
What is “long-term care insurance” designed to cover?✔✔ Costs related to extended care such as nursing homes or home health care
What is the difference between “term life” and “whole life” insurance? 3 / 4
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✔✔ Term life provides coverage for a set period; whole life provides lifelong coverage with a cash value component
What is “premium” in the context of insurance?✔✔ The amount paid by the insured to maintain coverage
Why do accident policies often exclude coverage for injuries sustained during illegal activities?✔✔ To avoid insuring risks that are intentional or against public policy
What is “disability income insurance” intended to replace?✔✔ Lost wages due to the inability to work caused by illness or injury
What does a “rider” do in an insurance policy?✔✔ It modifies or adds coverage to the base policy
What is the role of the “insurer” in an insurance contract?✔✔ To assume financial risk in exchange for premium payments
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