Life & Health Insurance Exam Claims and Benefits

Question 1

Under a life insurance policy, who has the right to file a death claim?

Accepted Answer

The beneficiary

Answer

The named beneficiary is entitled to file a death claim and receive the policy proceeds upon the insured's death.

Question 2

What is the 'incontestability clause' in a life insurance policy?

Accepted Answer

A clause preventing the insurer from voiding the policy after a specified period

Answer

After the incontestability period (typically 2 years), the insurer cannot contest the policy based on misstatements in the application.

Question 3

Which of the following is NOT a standard settlement option for life insurance death proceeds?

Accepted Answer

Automatic policy loan

Answer

Automatic policy loan is a nonforfeiture option, not a settlement option for death proceeds.

Question 4

What does 'Accidental Death Benefit' (ADB) rider provide?

Accepted Answer

An additional death benefit if the insured dies by accident

Answer

The ADB rider pays an additional amount—often equal to the face value—on top of the base death benefit if death results from an accident.

Question 5

A claimant submits a health insurance claim 30 days after the allowed filing period. The insurer will most likely:

Accepted Answer

Deny the claim due to late filing

Answer

Health insurers may deny claims submitted after the timely filing deadline specified in the policy.

Life & Health Insurance Exam Practice Test