semplr.

Exams · Certifications · Licensing

Life and Health Insurance Producer Exam

Mixed review: practice questions

Our Life & Health Insurance bank has 31 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

Start the free mock exam

Question 1

What is 'usual, customary and reasonable' (UCR) in health insurance?

  1. The amount that the government sets for all providers
  2. The price that the patient chooses to pay for the service
  3. The amount an insurer considers normal for a service in a geographic area
  4. The fee charged by the most expensive provider in the state for the same service
Show the answer

C. The amount an insurer considers normal for a service in a geographic area — Charges above UCR may be the insured's responsibility out of network.

Question 2

What three factors are primarily used to calculate life insurance premiums?

  1. Height, weight and blood type
  2. Credit score, age and marital status
  3. Income, education and occupation
  4. Mortality, interest and expenses
Show the answer

D. Mortality, interest and expenses — Mortality is the largest factor.

Question 3

What is a premium?

  1. The payment made to the insurer for coverage
  2. The commission paid to the producer
  3. The benefit paid to the beneficiary at death
  4. The interest charged on a policy loan
Show the answer

A. The payment made to the insurer for coverage — Premiums can be paid in various modes.

Question 4

Why do premiums paid annually cost less in total than premiums paid monthly?

  1. Annual payers receive a larger death benefit
  2. Monthly payers are more likely to be in poor health and to file more claims early
  3. State law requires a discount on annual premiums
  4. The insurer has fewer administrative costs and receives the money sooner
Show the answer

D. The insurer has fewer administrative costs and receives the money sooner — Modal factors increase the cost of more frequent payments.

Question 5

What is the consideration clause?

  1. The part that lets the insurer cancel at any time
  2. The part that pays the producer's commission
  3. The part that lists the beneficiaries' names
  4. The part of the policy stating the premium and the application as the insured's consideration
Show the answer

D. The part of the policy stating the premium and the application as the insured's consideration — The insurer's consideration is its promise to pay.

More Life & Health Insurance topics