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Life Insurance Exam Questions With 100% VERIFIED ANSWERS
Terms in this set (207)
J has a life policy with the Guaranteed Insurability C: The insurer will deny J's request to add more insurance.
rider. J has just celebrated their 42nd birthday and
realizes that she wants to use her rider and buy
more death benefit. Which of the following will
apply to J's request?
A: The insurer will allow J to add more insurance
without proving insurability.
B: The insurer will allow J to add more insurance
pending a paramedical exam.
C: The insurer will deny J's request to add more
insurance.
D: The insurer will allow J to add more coverage
pending proof of insurability and extra premium.
Life Insurance Exam Questions
1/26
,An insured has a policy with a Waiver of Premium C: After the first six months of disability
rider. The insured has suffered an illness that will
prevent them for working for two years. When will
their premiums be waived?
A: Immediately
B: After the first nine months of disability
C: After the first six months of disability
D: Never, premiums cannot be waived because
illness is not a disability.
The clause that defines and describes the scope A: Insuring Agreement
of coverage and the limits of indemnification is
known as the:
A: Insuring Agreement
B: Incontestable Clause
C: Payor Clause
D: Entire Contract Clause
D has just paid off his mortgage and has decided A: a life settlement
that he no longer needs his life insurance policy
which he originally purchased to cover the house
payments should he die. If D explores the possibly
of selling his policy while he is still alive, it is
known as:
A: a life settlement
B: an annuity
C: a Viatical settlement
D: STOLI
Combination/Variation Plans insure: B: Two or More lives under one contract
A: Groups
B: Two or More lives under one contract
C: Two or more people under separate contracts
D: are a form of variable life insurance
Life Insurance Exam Questions
2/26
, What is the tax consideration for taking a cash B: The dividend is paid tax free
dividend option?
A: The dividend is fully taxable as income
B: The dividend is paid tax free
C: Depending on income bracket of the insured,
the dividend may be taxable
D: If the company gets to keep half of the
dividend it is take free
Which of the following is not true regarding a D: A policy can be renewed, however, the insured must convert to a different policy.
renewable option on a term policy?
A: The policy must be renewed regardless of
insurability.
B: The rates cannot be more than standard rates at
renewal.
C: Premiums are based off of attained age rates.
D: A policy can be renewed, however, the insured
must convert to a different policy.
Which of the following is considered to be part of C: Copy of the Application
the Entire Contract?
A: Declarations Page
B: Buyers Guide
C: Copy of the Application
D: All of the Above
Company A has a partnership with Company Z. C: Business Entity Plan
There is an agreement in place that if the CEO of
either company were to die, the other company
would receive money to buy out the partnership.
This is an example of:
A: Buy/Sell Agreement
B: Crosse Purchase plan
C: Business Entity Plan
D: Key Person
Life Insurance Exam Questions
3/26
Life Insurance Exam Questions With 100% VERIFIED ANSWERS
Terms in this set (207)
J has a life policy with the Guaranteed Insurability C: The insurer will deny J's request to add more insurance.
rider. J has just celebrated their 42nd birthday and
realizes that she wants to use her rider and buy
more death benefit. Which of the following will
apply to J's request?
A: The insurer will allow J to add more insurance
without proving insurability.
B: The insurer will allow J to add more insurance
pending a paramedical exam.
C: The insurer will deny J's request to add more
insurance.
D: The insurer will allow J to add more coverage
pending proof of insurability and extra premium.
Life Insurance Exam Questions
1/26
,An insured has a policy with a Waiver of Premium C: After the first six months of disability
rider. The insured has suffered an illness that will
prevent them for working for two years. When will
their premiums be waived?
A: Immediately
B: After the first nine months of disability
C: After the first six months of disability
D: Never, premiums cannot be waived because
illness is not a disability.
The clause that defines and describes the scope A: Insuring Agreement
of coverage and the limits of indemnification is
known as the:
A: Insuring Agreement
B: Incontestable Clause
C: Payor Clause
D: Entire Contract Clause
D has just paid off his mortgage and has decided A: a life settlement
that he no longer needs his life insurance policy
which he originally purchased to cover the house
payments should he die. If D explores the possibly
of selling his policy while he is still alive, it is
known as:
A: a life settlement
B: an annuity
C: a Viatical settlement
D: STOLI
Combination/Variation Plans insure: B: Two or More lives under one contract
A: Groups
B: Two or More lives under one contract
C: Two or more people under separate contracts
D: are a form of variable life insurance
Life Insurance Exam Questions
2/26
, What is the tax consideration for taking a cash B: The dividend is paid tax free
dividend option?
A: The dividend is fully taxable as income
B: The dividend is paid tax free
C: Depending on income bracket of the insured,
the dividend may be taxable
D: If the company gets to keep half of the
dividend it is take free
Which of the following is not true regarding a D: A policy can be renewed, however, the insured must convert to a different policy.
renewable option on a term policy?
A: The policy must be renewed regardless of
insurability.
B: The rates cannot be more than standard rates at
renewal.
C: Premiums are based off of attained age rates.
D: A policy can be renewed, however, the insured
must convert to a different policy.
Which of the following is considered to be part of C: Copy of the Application
the Entire Contract?
A: Declarations Page
B: Buyers Guide
C: Copy of the Application
D: All of the Above
Company A has a partnership with Company Z. C: Business Entity Plan
There is an agreement in place that if the CEO of
either company were to die, the other company
would receive money to buy out the partnership.
This is an example of:
A: Buy/Sell Agreement
B: Crosse Purchase plan
C: Business Entity Plan
D: Key Person
Life Insurance Exam Questions
3/26
