ExamFX Life Insurance Final Exam.pdf ExamFX Life Insurance Final Exam.pdf ExamFX Life Insurance Final Exam.pdf
ExamFX Life Insurance Final Exam
... a whole life policy with premiums that increase annually over the first 5 to 10 years. -
ANS-Graded Premium
... are considered statements of fact or something guaranteed to be true. - ANS-Warranties
A breach of warranty can be considered grounds for ________________ the policy. -
ANS-voiding
A distribution fro an employer-sponsored retirement plan or from an IRA is eligible for a tax-free
rollover if it is reinvested in an IRA within - ANS-60 days
A graded premium life insurance policy is a modified form of... - ANS-Whole life
a policy that combines decreasing term insurance with whole life insurance to provide the
insured's family with a monthly income upon the death of the insured, while maintaining
permanent coverage until the end of the income payment? - ANS-Family Income Policy
A prospective differed annuity owner is concerned about what would happen if he surrendered
the annuity before the annuitization period. The agent most likely explained which of the
following? - ANS-Nonforfeiture option guarantees that the owner will receive a surrender value
of the contract.
A Universal Life insurance policy has two types of interest rates that are called -
ANS-Guaranteed and Current
A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy
will - ANS-Continue to increase
According to the life insurance replace meant regulations, which of the following would be an
example of policy replacement? - ANS-A policy is reissued with a reduction in cash value
All of the following are TRUE statements regarding the accumulation at interest option EXCEPT
- ANS-The interest is not taxable since it remains inside the insurance policy
All of the following statements about indexed whole life insurance EXCEPT... - ANS-The death
benefit is not increased
allow for increases or decreases in the face amount or premium, as long as the premium is
sufficient to pay for the mortality. - ANS-Adjustable Life policies
ExamFX Life Insurance Final Exam.pdf ExamFX Life Insurance Final Exam.pdf ExamFX Life Insurance Final Exam.pdf
, ExamFX Life Insurance Final Exam.pdf ExamFX Life Insurance Final Exam.pdf ExamFX Life Insurance Final Exam.pdf
An insurance agent changes his address. How long will the agent be given to notify the
Department of Insurance? - ANS-10 business days
An insurance contract requires that both the insured and the insurer meet certain conditions in
order for the contract to be enforceable. What contract characteristic does this describe? -
ANS-Conditional
An insure purchased a 10-year level term life policy that is guaranteed renewable and
convertible. What happens at the end of the 10-year term? - ANS-The insured may renew the
policy for another 10 years, but at a higher premium rate.
An insured bought an insurance policy that requires him to pay $150 in premiums on the 15th of
each month. He then takes an extended vacation and forgets to pay the premium. Ten days
later, his policy is still in effect and has not lapsed. What policy provision allowed for this? -
ANS-Grace period
An insured committed suicide one year after his life insurance policy was issued. The insurer will
- ANS-Refund the premiums paid.
Any increase in face amount requires - ANS-proof of insurability
Credit Life insurance - ANS-Insures the life of a debtor
Failure to notify the Commissioner of changes to a licensee's address within 10 business days
may result in an administrative fee of - ANS-$50
Grace period is a mandatory provision found in all life insurance policies that provides coverage
for a period of time after the _____________________ becomes past due. - ANS-premium
Graded-Premium Whole Life policy premiums are typically lower initially, but gradually increase
for a period of 5 to 10 years. After the period of increase the premiums will - ANS-Be level
thereafter
If a level term product is renewed at the end of the term period the premium will be based upon
- ANS-the attained age of the insured.
If a life insurance policy contains a minimum 10-day unconditional refund provision (free look),
when is the latest that the buyer's guide and policy summary must be delivered? - ANS-At the
time of policy delivery
If a life insurance policy develops cash value faster than a seven-pay whole life contract, it is -
ANS-A Modified Endowment Contract
ExamFX Life Insurance Final Exam.pdf ExamFX Life Insurance Final Exam.pdf ExamFX Life Insurance Final Exam.pdf
ExamFX Life Insurance Final Exam
... a whole life policy with premiums that increase annually over the first 5 to 10 years. -
ANS-Graded Premium
... are considered statements of fact or something guaranteed to be true. - ANS-Warranties
A breach of warranty can be considered grounds for ________________ the policy. -
ANS-voiding
A distribution fro an employer-sponsored retirement plan or from an IRA is eligible for a tax-free
rollover if it is reinvested in an IRA within - ANS-60 days
A graded premium life insurance policy is a modified form of... - ANS-Whole life
a policy that combines decreasing term insurance with whole life insurance to provide the
insured's family with a monthly income upon the death of the insured, while maintaining
permanent coverage until the end of the income payment? - ANS-Family Income Policy
A prospective differed annuity owner is concerned about what would happen if he surrendered
the annuity before the annuitization period. The agent most likely explained which of the
following? - ANS-Nonforfeiture option guarantees that the owner will receive a surrender value
of the contract.
A Universal Life insurance policy has two types of interest rates that are called -
ANS-Guaranteed and Current
A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy
will - ANS-Continue to increase
According to the life insurance replace meant regulations, which of the following would be an
example of policy replacement? - ANS-A policy is reissued with a reduction in cash value
All of the following are TRUE statements regarding the accumulation at interest option EXCEPT
- ANS-The interest is not taxable since it remains inside the insurance policy
All of the following statements about indexed whole life insurance EXCEPT... - ANS-The death
benefit is not increased
allow for increases or decreases in the face amount or premium, as long as the premium is
sufficient to pay for the mortality. - ANS-Adjustable Life policies
ExamFX Life Insurance Final Exam.pdf ExamFX Life Insurance Final Exam.pdf ExamFX Life Insurance Final Exam.pdf
, ExamFX Life Insurance Final Exam.pdf ExamFX Life Insurance Final Exam.pdf ExamFX Life Insurance Final Exam.pdf
An insurance agent changes his address. How long will the agent be given to notify the
Department of Insurance? - ANS-10 business days
An insurance contract requires that both the insured and the insurer meet certain conditions in
order for the contract to be enforceable. What contract characteristic does this describe? -
ANS-Conditional
An insure purchased a 10-year level term life policy that is guaranteed renewable and
convertible. What happens at the end of the 10-year term? - ANS-The insured may renew the
policy for another 10 years, but at a higher premium rate.
An insured bought an insurance policy that requires him to pay $150 in premiums on the 15th of
each month. He then takes an extended vacation and forgets to pay the premium. Ten days
later, his policy is still in effect and has not lapsed. What policy provision allowed for this? -
ANS-Grace period
An insured committed suicide one year after his life insurance policy was issued. The insurer will
- ANS-Refund the premiums paid.
Any increase in face amount requires - ANS-proof of insurability
Credit Life insurance - ANS-Insures the life of a debtor
Failure to notify the Commissioner of changes to a licensee's address within 10 business days
may result in an administrative fee of - ANS-$50
Grace period is a mandatory provision found in all life insurance policies that provides coverage
for a period of time after the _____________________ becomes past due. - ANS-premium
Graded-Premium Whole Life policy premiums are typically lower initially, but gradually increase
for a period of 5 to 10 years. After the period of increase the premiums will - ANS-Be level
thereafter
If a level term product is renewed at the end of the term period the premium will be based upon
- ANS-the attained age of the insured.
If a life insurance policy contains a minimum 10-day unconditional refund provision (free look),
when is the latest that the buyer's guide and policy summary must be delivered? - ANS-At the
time of policy delivery
If a life insurance policy develops cash value faster than a seven-pay whole life contract, it is -
ANS-A Modified Endowment Contract
ExamFX Life Insurance Final Exam.pdf ExamFX Life Insurance Final Exam.pdf ExamFX Life Insurance Final Exam.pdf
