Life Exam Prometric
All of the following statements about the provisions in a typical modification clause in a
life insurance policy are true EXCEPT: - answerThe authority to bind the insurance
company to policy changes or modifications is limited to specified persons.
The lowest total annual premium expenditure usually results when premiums are paid: -
answer Annually
A preferred risk classification for a whole life insurance policy means that: - answerThe
premium rate is lower than the standard rate for the identical policy
The gross annual premium for a whole life insurance policy is the net premium: -
answerPlus Expenses
Which one of the following statements about a life insurance policy rider regarding
waiver of premiums and disability income is true? - answerIn addition to waiving
premiums during periods of disability, it provides a monthly income.
A withdrawal from a deferred annuity must be authorized by - answerThe Owner
The beneficiary of a life insurance policy originally is indicated: - answerOn the life
insurance application
Life insurance helps meet estate planning objectives because it is: - answerA liquid
asset at death
Current interest rates provide a reasonable basis for projecting cash values in a fixed
annuity when: - answerThe current interest rate is close to historical standards
Which provision can provide for the payment of life insurance benefits to the insured
while living? - answerAn accelerated benefit provision
Which one of the following statements about the application for life insurance is true? -
answerIt becomes a permanent part of the insurance contract.
A misleading life insurance policy illustration may result from any of the following
EXCEPT - answerReflecting the time value of money
All of the following are reasons for purchasing life insurance on a spouse who does not
work for pay outside the home EXCEPT: - answerTo guarantee that newborn children
will be eligible for life insurance
All of the following statements about the provisions in a typical modification clause in a
life insurance policy are true EXCEPT: - answerThe authority to bind the insurance
company to policy changes or modifications is limited to specified persons.
The lowest total annual premium expenditure usually results when premiums are paid: -
answer Annually
A preferred risk classification for a whole life insurance policy means that: - answerThe
premium rate is lower than the standard rate for the identical policy
The gross annual premium for a whole life insurance policy is the net premium: -
answerPlus Expenses
Which one of the following statements about a life insurance policy rider regarding
waiver of premiums and disability income is true? - answerIn addition to waiving
premiums during periods of disability, it provides a monthly income.
A withdrawal from a deferred annuity must be authorized by - answerThe Owner
The beneficiary of a life insurance policy originally is indicated: - answerOn the life
insurance application
Life insurance helps meet estate planning objectives because it is: - answerA liquid
asset at death
Current interest rates provide a reasonable basis for projecting cash values in a fixed
annuity when: - answerThe current interest rate is close to historical standards
Which provision can provide for the payment of life insurance benefits to the insured
while living? - answerAn accelerated benefit provision
Which one of the following statements about the application for life insurance is true? -
answerIt becomes a permanent part of the insurance contract.
A misleading life insurance policy illustration may result from any of the following
EXCEPT - answerReflecting the time value of money
All of the following are reasons for purchasing life insurance on a spouse who does not
work for pay outside the home EXCEPT: - answerTo guarantee that newborn children
will be eligible for life insurance
