RMIN EXAM 4 2025 QUESTIONS AND
ANSWERS
From a risk management perspective, which of the following best describes "premature
death?" - ANS Death of a family income earner during a dependency period
Select an answer that describes examples of business-related premature death exposures. -
ANS Death of a key employee with expert knowledge
Which of the following specific needs for life insurance involves things like legal fees and taxes?
- ANS Estate clearance fund
Looking at the human life value calculation for Mikayla in the video, compare the amount of life
insurance would have Mikayla needed if she planned to retire at 65 vs. 67 - ANS Mikayla
would need about less insurance (by around $75,000) if she plans to retire earlier earlier
What is a level term contract? - ANS A form of term insurance in which the face amount does
not change over time
Which of the following is not among the three most popular forms of life insurance today? -
ANS Variable Life
Which of the following is TRUE about whole life insurance? - ANS Cash values are guaranteed
amounts that are stated in the policy
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, Which of the following is NOT true about Universal Life Insurance - ANS The insurer chooses
the premium you pay throughout the life of the policy
Victoria intentionally understated her age on her application for $100,000 in life insurance in
order to receive a lower premium. After Victoria died, the life insurer discovered her true age.
Which of the following best describes what will happen? - ANS The insurer will pay the claim,
but the benefit will be less than $100,000
If a current mother of two knows she wants to split her death benefit among all of her children
even if she has more children, what type of beneficiary designation should she use? -
ANS class
a renewable term policy - ANS People who experience health problems that might prevent
them from obtaining other insurance at a comparable price are more likely to renew their
policies
a universal life policy that allows the insured to periodically increase the amount of coverage -
ANS People who experience health problems that might prevent them from obtaining other
insurance at a comparable price are more likely to exercise their right to increase the amount of
coverage
a term policy with a cost of living rider - ANS People who experience health problems that
might prevent them from obtaining other insurance at a comparable price are more likely to
exercise their right to increase coverage using a term policy with a cost-of-living rider
For what type of insured/owner is an automatic premium loan especially good? -
ANS Someone who has developed a chronic illness and probably not insurable anymore
Lump-sum option - ANS Results in the insurer paying the total death benefit of the policy as a
single settlement
Copyright ©2025 BRIGHTSTARS ALL RIGHTS RESERVED 2
ANSWERS
From a risk management perspective, which of the following best describes "premature
death?" - ANS Death of a family income earner during a dependency period
Select an answer that describes examples of business-related premature death exposures. -
ANS Death of a key employee with expert knowledge
Which of the following specific needs for life insurance involves things like legal fees and taxes?
- ANS Estate clearance fund
Looking at the human life value calculation for Mikayla in the video, compare the amount of life
insurance would have Mikayla needed if she planned to retire at 65 vs. 67 - ANS Mikayla
would need about less insurance (by around $75,000) if she plans to retire earlier earlier
What is a level term contract? - ANS A form of term insurance in which the face amount does
not change over time
Which of the following is not among the three most popular forms of life insurance today? -
ANS Variable Life
Which of the following is TRUE about whole life insurance? - ANS Cash values are guaranteed
amounts that are stated in the policy
Copyright ©2025 BRIGHTSTARS ALL RIGHTS RESERVED 1
, Which of the following is NOT true about Universal Life Insurance - ANS The insurer chooses
the premium you pay throughout the life of the policy
Victoria intentionally understated her age on her application for $100,000 in life insurance in
order to receive a lower premium. After Victoria died, the life insurer discovered her true age.
Which of the following best describes what will happen? - ANS The insurer will pay the claim,
but the benefit will be less than $100,000
If a current mother of two knows she wants to split her death benefit among all of her children
even if she has more children, what type of beneficiary designation should she use? -
ANS class
a renewable term policy - ANS People who experience health problems that might prevent
them from obtaining other insurance at a comparable price are more likely to renew their
policies
a universal life policy that allows the insured to periodically increase the amount of coverage -
ANS People who experience health problems that might prevent them from obtaining other
insurance at a comparable price are more likely to exercise their right to increase the amount of
coverage
a term policy with a cost of living rider - ANS People who experience health problems that
might prevent them from obtaining other insurance at a comparable price are more likely to
exercise their right to increase coverage using a term policy with a cost-of-living rider
For what type of insured/owner is an automatic premium loan especially good? -
ANS Someone who has developed a chronic illness and probably not insurable anymore
Lump-sum option - ANS Results in the insurer paying the total death benefit of the policy as a
single settlement
Copyright ©2025 BRIGHTSTARS ALL RIGHTS RESERVED 2
