6. NV - Life Insurance Practice Final Examination Questions and Answers 100% Verified(SCORED A+)

Jason is the insured in a $100,000, 10 year renewable term policy. Soon after taking out the policy, he develops a serious heart condition. Which of the following statement is CORRECT? a. Since the condition manifested after the policy was issued, he will not be able to renew his policy. b. Jason will be able to renew his policy c. It will be necessary for Jason to show evidence of insurability in order to renew the policy d. If Jason renews his policy, it will be rated for his health condition. - ANSWER-b. Jason will be able to renew his policy Jane buys a $25,000 policy and her agent tells her that as long as she is approved, the coverage goes into effect immediately. What did Jane's agent give her? a. Consideration b. Conditional receipt c. Return of premium d. Binding receipt - ANSWER-b. Conditional receipt The primary purpose of an annuity is to a. liquidate the separate account of an investment portfolio b. provide income for an individual's retirement c. provide income for a beneficiary d. create an estate immediately - ANSWER-a. liquidate the separate account of an investment portfolio Under what circumstance would an insurance applicant be asked to submit a signed statement of continued good health? a. When the initial premium is not submitted with the application b. When the policy is underwritten as substandard c. In order to receive a preferred rating d. When an inspection report is ordered - ANSWER-a. When the initial premium is not submitted with the application When a firm established a contributor group term life insurance contract, what percentage test must be met for the participation a