Life-Only Agent Exam # 1 Questions and
Answers
AN example of a moral hazard in relation to a life insurance application would be: - CORRECT
ANSWERS:Misstating your health history to an insurance company.
John applies for a variable annuity and does not request that the premiums be immediately invested in a
stock or bond portfolio. After the annuity is issued, John returns the annuity contract to the insurer
within the free look period. What will John receive from the insurer? - CORRECT ANSWERS:The entire
premium
In life insurance policies, naming beneficiaries is an important part of the application process. Choose
from below the best description of a contingent beneficiary. - CORRECT ANSWERS:One with the first
right to receive proceeds if there is no surviving primary beneficiary and the insured dies.
Of the following, which best describes an annuity? - CORRECT ANSWERS:It has an obligation that is
different to the insurance company for both the accumulation period and the liquidation period.
After receiving your insurance license, if you change your address, you are to notify the Commissioner: -
CORRECT ANSWERS:immediately
All of the following are used in determining life insurance rates, EXCEPT:
> Insurance company expenses
> Mortality
> Investment and interest return
> Policy reserves - CORRECT ANSWERS:Policy reserves
The best description of a hazard is a/an: - CORRECT ANSWERS:Condition that may increase the chance
that a loss may occur.
, The term "consideration" applies to the issuance of an insurance policy. Choose the best description of
this term from the choices below:
> The amount of death benefit.
> The time the underwriting department gives the application
> The face amount of the policy one year from the date of issue.
> None of the above - CORRECT ANSWERS:none of the above
In group life insurance, who is issued a certificate of insurance? - CORRECT ANSWERS:The Participant
All of the following statements apply to the child coverage in a family policy, EXCEPT
> Child coverage is convertible to whole life coverage
> Child coverage is term insurance
> Children are covered until reaching a specified age
> Coverage applies only to children born before the policy is issued - CORRECT ANSWERS:Coverage
applies only to children born before the policy is issued
What is one difference between group life and individual life underwriting? - CORRECT
ANSWERS:Individual life insurance requires the applicant to answer medical questions.
In financial planning, what is the Human Life Value concept based on? - CORRECT ANSWERS:Income
A written contract attempts to indemnify another party against loss, damage, or liability arising from a
contingent or unknown event. This describes: - CORRECT ANSWERS:Insurance
According to the definition of an ideally insurable risk, which of the following is NOT a requirement?
> Loss must be accidental
> Loss exposure must be part of a similar group of exposures
Answers
AN example of a moral hazard in relation to a life insurance application would be: - CORRECT
ANSWERS:Misstating your health history to an insurance company.
John applies for a variable annuity and does not request that the premiums be immediately invested in a
stock or bond portfolio. After the annuity is issued, John returns the annuity contract to the insurer
within the free look period. What will John receive from the insurer? - CORRECT ANSWERS:The entire
premium
In life insurance policies, naming beneficiaries is an important part of the application process. Choose
from below the best description of a contingent beneficiary. - CORRECT ANSWERS:One with the first
right to receive proceeds if there is no surviving primary beneficiary and the insured dies.
Of the following, which best describes an annuity? - CORRECT ANSWERS:It has an obligation that is
different to the insurance company for both the accumulation period and the liquidation period.
After receiving your insurance license, if you change your address, you are to notify the Commissioner: -
CORRECT ANSWERS:immediately
All of the following are used in determining life insurance rates, EXCEPT:
> Insurance company expenses
> Mortality
> Investment and interest return
> Policy reserves - CORRECT ANSWERS:Policy reserves
The best description of a hazard is a/an: - CORRECT ANSWERS:Condition that may increase the chance
that a loss may occur.
, The term "consideration" applies to the issuance of an insurance policy. Choose the best description of
this term from the choices below:
> The amount of death benefit.
> The time the underwriting department gives the application
> The face amount of the policy one year from the date of issue.
> None of the above - CORRECT ANSWERS:none of the above
In group life insurance, who is issued a certificate of insurance? - CORRECT ANSWERS:The Participant
All of the following statements apply to the child coverage in a family policy, EXCEPT
> Child coverage is convertible to whole life coverage
> Child coverage is term insurance
> Children are covered until reaching a specified age
> Coverage applies only to children born before the policy is issued - CORRECT ANSWERS:Coverage
applies only to children born before the policy is issued
What is one difference between group life and individual life underwriting? - CORRECT
ANSWERS:Individual life insurance requires the applicant to answer medical questions.
In financial planning, what is the Human Life Value concept based on? - CORRECT ANSWERS:Income
A written contract attempts to indemnify another party against loss, damage, or liability arising from a
contingent or unknown event. This describes: - CORRECT ANSWERS:Insurance
According to the definition of an ideally insurable risk, which of the following is NOT a requirement?
> Loss must be accidental
> Loss exposure must be part of a similar group of exposures
