Ucanpass v1 UPDATED ACTUAL Exam
Questions and CORRECT Answers
An individual has a $200,000 convertible term life insurance policy. If he chooses, he can -
CORRECT ANSWER - Convert to a whole life policy for the same face amount without
proof of insurability.
According to the life insurance replacement regulations, which of the following would be an
example of policy replacement? - CORRECT ANSWER - A policy is reissued with a
reduction in cash value.
Cash Value guarantees in a whole life policy are called - CORRECT ANSWER -
nonforfeiture values
Your client wants to provide a retirement income for his elderly parents in case something
happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life.
Which settlement option should this policyowner select? - CORRECT ANSWER - Joint
and Survivor
Which of the following acts stated that the federal government would not regulate insurance as
long as the states did an adequate job of regulating the industry? - CORRECT ANSWER -
McCarran-Ferguson Act
All of the following information needs to be included on an application for life insurance
EXCEPT - CORRECT ANSWER - Health insurance policies in force.
An applicant for surplus lines authority must do all of the following EXCEPT - CORRECT
ANSWER - Possess a certificate of authority in this state
Which of the following policies would NOT offer a policy loan option? - CORRECT
ANSWER - Termlife
, Which dividend option will increase the death benefit? - CORRECT ANSWER - Paid-up
additions
If the policy summary for a life insurance policy is not given when the application is taken, when
must the policy summary be given to the policyowner? - CORRECT ANSWER - When
the policy is delivered
Which of the following could most likely be issued a resident producer license? - CORRECT
ANSWER - Sally lives in a neighboring state but has an office in New Jersey.
A married couple purchase a life insurance policy on their newborn baby. They are concerned
about what would happen to the policy if either one of them were unable to continue making the
premium payments due to death or disability. Which policy rider should their agent recommend?
- CORRECT ANSWER - Payor benefit
All of the following are true of credit life EXCEPT - CORRECT ANSWER - The insured
names the beneficiary
All of the following are true regarding the federal Fair Credit Reporting Act EXCEPT -
CORRECT ANSWER - Reports may be sent to anyone who requests one.
An insured falls down a flight of stairs and sustains a neck injury that renders him severely
disabled. The insured owns a Whole Life policy. Is it possible for the policy to include a Waiver
of Cost of Insurance rider, and if so, what insurance costs would be waived? - CORRECT
ANSWER - No; it is not possible for this waiver to be included in a whole life policy
If a licensee wants to transact insurance under a different name than that listed on his or her
producer's license, which of the following must occur? - CORRECT ANSWER - The
change must be filed with the Department
The family term rider incorporates - CORRECT ANSWER - Spouse term and children's
term
Questions and CORRECT Answers
An individual has a $200,000 convertible term life insurance policy. If he chooses, he can -
CORRECT ANSWER - Convert to a whole life policy for the same face amount without
proof of insurability.
According to the life insurance replacement regulations, which of the following would be an
example of policy replacement? - CORRECT ANSWER - A policy is reissued with a
reduction in cash value.
Cash Value guarantees in a whole life policy are called - CORRECT ANSWER -
nonforfeiture values
Your client wants to provide a retirement income for his elderly parents in case something
happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life.
Which settlement option should this policyowner select? - CORRECT ANSWER - Joint
and Survivor
Which of the following acts stated that the federal government would not regulate insurance as
long as the states did an adequate job of regulating the industry? - CORRECT ANSWER -
McCarran-Ferguson Act
All of the following information needs to be included on an application for life insurance
EXCEPT - CORRECT ANSWER - Health insurance policies in force.
An applicant for surplus lines authority must do all of the following EXCEPT - CORRECT
ANSWER - Possess a certificate of authority in this state
Which of the following policies would NOT offer a policy loan option? - CORRECT
ANSWER - Termlife
, Which dividend option will increase the death benefit? - CORRECT ANSWER - Paid-up
additions
If the policy summary for a life insurance policy is not given when the application is taken, when
must the policy summary be given to the policyowner? - CORRECT ANSWER - When
the policy is delivered
Which of the following could most likely be issued a resident producer license? - CORRECT
ANSWER - Sally lives in a neighboring state but has an office in New Jersey.
A married couple purchase a life insurance policy on their newborn baby. They are concerned
about what would happen to the policy if either one of them were unable to continue making the
premium payments due to death or disability. Which policy rider should their agent recommend?
- CORRECT ANSWER - Payor benefit
All of the following are true of credit life EXCEPT - CORRECT ANSWER - The insured
names the beneficiary
All of the following are true regarding the federal Fair Credit Reporting Act EXCEPT -
CORRECT ANSWER - Reports may be sent to anyone who requests one.
An insured falls down a flight of stairs and sustains a neck injury that renders him severely
disabled. The insured owns a Whole Life policy. Is it possible for the policy to include a Waiver
of Cost of Insurance rider, and if so, what insurance costs would be waived? - CORRECT
ANSWER - No; it is not possible for this waiver to be included in a whole life policy
If a licensee wants to transact insurance under a different name than that listed on his or her
producer's license, which of the following must occur? - CORRECT ANSWER - The
change must be filed with the Department
The family term rider incorporates - CORRECT ANSWER - Spouse term and children's
term
