215 State Exam Simulator (All Q's Composed) with Verified Solutions

215 State Exam Simulator (All Q's Composed) with Verified Solutions A life insurance policy that provides a policyowner with cash value along with a level face amount is called Whole life T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive? $0 The mother receives $0 because T is still alive and the sole primary beneficiary, while the mother is still the contingent beneficiary. A level premium indicates the premium is fixed for the entire duration of the contract Which premium schedule results in the lowest cost to the policyowner? Annual A policyowner is allowed to pay premiums more than once a year under which provision? Mode of Premium A life insurance application must be signed by all of these EXCEPT beneficiary Any changes made on an insurance application requires the initials of whom? Applicant All of these are considered sources of underwriting information about an applicant EXCEPT Rating Services Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation? Policy was returned within the free-look period, premium will be fully refunded T applies for a life insurance policy and is told by the producer that the insurer is bound to the coverage as of the date of the application or medical examination, whichever is later, provided that T is an acceptable risk. What item is given to T? Conditional receipt When an insurance application is taken by a producer, which of these statements is true? Any changes made on the application require the applicant's initials A CEO's personal assistant suffered injuries at home and as a result, was unable to work for four months. Which type of policy will pay a monthly benefit to the personal assistant? Disability Income P is a Major Medical policyowner who is hospitalized as a result of injuries sustained from participating in a carjacking. How will the insurer most likely handle this claim? Claim will be denied A Disability Income policyowner suffers a disability which was due to the same cause as a previous disability. Both disabilities occurred within a five-month period. The insurer may cover the second disability without a new elimination period under the Recurrent Disability provision Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance? Entire cash surrender value is