Question 1

Which of the following statements regarding risk is TRUE?

Options :

A : Only pure risks are insurable.

B : Only speculative risks are insurable.

C : Both pure and speculative risks are insurable.

D : Neither pure nor speculative risks are insurable.

Answer: A

Question 2

The initial enrollment period for Medicare Part B ends how many months after the 65th birthday month?

Options :

A : One month.

B : Three months.

C : Five months.

D : Seven months.

Answer: D

Question 3

The guaranteed insurability option provides the ability to

Options :

A : waive premium payments in the event of disability.

B : purchase additional insurance regardless of insurability.

C : access a portion of the death benefit in the event of serious illness.

D : double the amount of the death benefit in the event of accidental death.

Answer: B

Question 4

All of the following are standard exclusions in individual disability income policies EXCEPT

Options :

A : self-inflicted injuries.

B : preexisting conditions.

C : active military duty.

D : accidental injuries.

Answer: D

Question 5

The total premium paid by a life policy owner for one policy year is

Options :

A : the same regardless of the frequency of payment.

B : less when paid quarterly than if paid semiannually.

C : greater if the premium is paid semiannually rather than annually.

D :

based on the assumption that the insured will pay policy premiums at the end of the policy year in one payment; if paid earlier in the policy year, a discount will be allowed.

Answer: C

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