Life & Health Insurance Exam Life and Health Insurance Assessment 5

Question 1

The 'free look' provision in a life insurance policy gives the policyowner the right to:

Accepted Answer

Review and return the policy for a full premium refund within a specified period

Answer

The free look period (typically 10–30 days) allows a new policyowner to review the policy and return it for a full refund if unsatisfied.

Question 2

A 'guaranteed renewable' health insurance policy means the insurer:

Accepted Answer

Must renew the policy but may increase premiums for an entire class of insureds

Answer

Guaranteed renewable means the insurer must continue coverage at the insured's option, but can raise premiums on a class-wide basis.

Question 3

Which of the following annuity payout options provides the highest monthly income to the annuitant?

Accepted Answer

Life only (straight life)

Answer

A straight life annuity pays the highest monthly benefit because there is no guarantee period or survivor benefit, so payments stop at death.

Question 4

Under an HMO health plan, a primary care physician (PCP) typically serves as a:

Accepted Answer

Gatekeeper who authorizes specialist referrals

Answer

In an HMO, the PCP acts as a gatekeeper, coordinating care and providing referrals required before the insured can see specialists.

Question 5

A life insurance policy loan that is not repaid by the insured's death will:

Accepted Answer

Be deducted from the death benefit paid to the beneficiary

Answer

Any outstanding policy loan balance plus accumulated interest is subtracted from the death benefit before the beneficiary receives payment.

Life & Health Insurance Exam Practice Test