QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS)
GUARANTEED A GRADE
What kind of life insurance beneficiary requires his/her consent when a change of
beneficiary is made?
*Irrevocable beneficiary
*Tertiary beneficiary
*Primary beneficiary
*Revocable beneficiary - ANSWER *Irrevocable beneficiary
(An irrevocable designation may not be changed without the written consent of
the beneficiary.)
When can a policyowner change a revocable beneficiary?
*Anytime
*After the consent of the current beneficiary
*Never
*Only if primary beneficiary dies - ANSWER *Anytime
(With a revocable beneficiary designation, the policyowner may change the
beneficiary at any time without notifying or getting permission from the
beneficiary.)
M purchased an Accidental Death and Dismemberment (AD&D) policy and named
his son as beneficiary. M has the right to change the beneficiary designation at
anytime. What type of beneficiary is his son?
*Tertiary
*Irrevocable
*Revocable
*Contingent - ANSWER *Revocable
,LLQP Practice Exam 150 ACTUAL EXAM WITH
QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS)
GUARANTEED A GRADE
(With a revocable beneficiary designation, the policyowner may change the
beneficiary at any time without notifying or getting permission from the
beneficiary.)
How would a contingent beneficiary receive the policy proceeds in an Accidental
Death and Dismemberment (AD&D) policy?
*If the primary beneficiary is a minor at the time of the insured's death
*If the primary beneficiary dies before the insured
*If the insured died of accidental causes
*If the insured died of natural causes - ANSWER *If the primary beneficiary dies
before the insured
(A contingent beneficiary will receive the policy proceeds if the primary
beneficiary dies before the insured's death.)
Which statement regarding the Change of Beneficiary provision is true?
*The beneficiary can only be changed with the consent of the insurer
*The policyowner can change the beneficiary
*The insured can change the beneficiary
*A beneficiary change is subject to underwriting procedures - ANSWER *The
policyowner can change the beneficiary
(A policyowner may change a beneficiary at any time. However, consent may be
needed by the current beneficiary if designated as irrevocable.)
A policyowner would like to change the beneficiary on a Life insurance policy and
make the change permanent. Which type of designation would fulfill this need?
*Revocable
*Contingent
*Irrevocable
*Primary - ANSWER *Irrevocable
,LLQP Practice Exam 150 ACTUAL EXAM WITH
QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS)
GUARANTEED A GRADE
(An irrevocable designation may not be changed without the written consent of
the beneficiary.)
, LLQP Practice Exam 150 ACTUAL EXAM WITH
QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS)
GUARANTEED A GRADE
Which statement is true regarding a minor beneficiary?
*Normally, the death proceeds are required to be held in trust until the
beneficiary reaches the age of 21
*Normally, a guardian is required to be appointed in the Beneficiary clause of the
contract
*The minor must pay the debts of the insured's estate before receiving any of the
proceeds
*The minor is entitled to receive the death proceeds immediately - ANSWER
*Normally, a guardian is required to be appointed in the Beneficiary clause of the
contract
(In most cases, insurers require that a guardian be appointed in the Beneficiary
clause of the policy or that a guardian be designated in the will.)
What is the underlying concept regarding level premiums?
*Level premiums build cash value quicker in the early years
*The early years are charged more than what is needed
*The early years are charged less than what is needed
*Level premiums can only be paid annually - ANSWER *The early years are
charged more than what is needed
(The concept of level premiums charges more than needed in early years.)
A policyowner is able to choose the frequency of premium payments through what
policy feature?
*Consideration
*Payor benefit
*Premium Mode
*Assignment provision - ANSWER (Premium Mode is the feature that allows the
policyowner to select the timing of premium payment, such as monthly, quarterly,
annually etc.)