Kansas Life and Health Insurance License Exam
M has an insurance policy that also has an outstanding policy
loan at the time of M's death. The insurer will deduct the
outstanding loan balance from the
policy proceeds
P died five years after purchasing a life policy. While
investigating the claim, the insurer discovered material
misrepresentations made by P during the application process.
Which of these actions will the insurer take?
Beneficiary will be paid the Death Benefit
How are surrender charges deducted in a life policy with a rear-
end loaded provision?
Deducted when the policy is discontinued
A provision in a life insurance policy that pays the policyowner
an amount that does not surpass the guaranteed cash value is
called the
Policy Loan provision
P purchases a $50,000 whole life insurance policy in 2005. One
of the questions on the application asks if P engages in scuba
diving, to which P answers "No". The policy is then issued with
no scuba exclusions. In 2010, P takes up scuba diving and dies
in a scuba-related accident in 2011. What will the insurer pay to
P's beneficiary?
$50,000 minus any outstanding policy loans
,N is a student pilot with a large life insurance policy. Which of
these features would limit the insurer's obligation in the event N
was killed while flying as a student pilot
Exclusion
The advantage of reinstating an original life policy is
the premiums are based on a younger age
The Automatic Premium Loan provision is designed to
avoid a policy lap
What does the insuring agreement in a Life insurance contract
establish?
An insurer's basic promise
What provision in a life insurance policy states that the
application is considered part of the contract?
Entire Contract provisio
What action will an insurer take if an interest payment on a
policy loan is not made on time?
automatically add the amount of interest due to the loan balance
What is the Suicide provision designed to do?
safeguard the insurer from an applicant who is contemplating
suicide
Which of these types of policies may NOT have the Automatic
Premium Loan provision attached to it?
Decreasing term
,The Common Disaster clause provides that if both the insured
and the sole named beneficiary were to die in a common
accident, which of the following is true?
This clause provides the payment of proceeds to the insured's
estate
When can a policyowner change a revocable beneficiary?
Anytime
Which settlement option pays a stated amount to an annuitant,
but no residual value to a beneficiary?
Life Income
Which type of life insurance beneficiary requires his/her consent
when a change of beneficiary is attempted by the policyowner?
Irrevocable beneficiary
How would a contingent beneficiary receive the policy proceeds
in an Accidental Death and Dismemberment (AD&D) policy?
If the primary beneficiary dies before the insured
Which statement is true regarding a minor beneficiary?
Normally, a guardian is required to be appointed in the
Beneficiary clause of the contract
, A whole life insurance policyowner does not wish to continue
making premium payments. Which of the following enables the
policyowner to sell the policy for more than its cash value?
Life settlement contract
What is the underlying concept regarding level premiums?
The early years are charged more than what is needed
Which statement regarding the Change of Beneficiary provision
is true?
The policyowner can change the beneficiary
A primary beneficiary has died before the insured in a life
insurance policy. A contingent beneficiary is also named in the
policy. Which of the following will occur when the insured
dies?
Proceeds will go to the contingent beneficiary
T is the policyowner for a Life Insurance policy with an
Irrevocable beneficiary designation. If T wishes to change the
beneficiary, T must obtain permission from the
beneficiary
A level premium indicates:
the premium is fixed for the entire duration of the contract
M has an insurance policy that also has an outstanding policy
loan at the time of M's death. The insurer will deduct the
outstanding loan balance from the
policy proceeds
P died five years after purchasing a life policy. While
investigating the claim, the insurer discovered material
misrepresentations made by P during the application process.
Which of these actions will the insurer take?
Beneficiary will be paid the Death Benefit
How are surrender charges deducted in a life policy with a rear-
end loaded provision?
Deducted when the policy is discontinued
A provision in a life insurance policy that pays the policyowner
an amount that does not surpass the guaranteed cash value is
called the
Policy Loan provision
P purchases a $50,000 whole life insurance policy in 2005. One
of the questions on the application asks if P engages in scuba
diving, to which P answers "No". The policy is then issued with
no scuba exclusions. In 2010, P takes up scuba diving and dies
in a scuba-related accident in 2011. What will the insurer pay to
P's beneficiary?
$50,000 minus any outstanding policy loans
,N is a student pilot with a large life insurance policy. Which of
these features would limit the insurer's obligation in the event N
was killed while flying as a student pilot
Exclusion
The advantage of reinstating an original life policy is
the premiums are based on a younger age
The Automatic Premium Loan provision is designed to
avoid a policy lap
What does the insuring agreement in a Life insurance contract
establish?
An insurer's basic promise
What provision in a life insurance policy states that the
application is considered part of the contract?
Entire Contract provisio
What action will an insurer take if an interest payment on a
policy loan is not made on time?
automatically add the amount of interest due to the loan balance
What is the Suicide provision designed to do?
safeguard the insurer from an applicant who is contemplating
suicide
Which of these types of policies may NOT have the Automatic
Premium Loan provision attached to it?
Decreasing term
,The Common Disaster clause provides that if both the insured
and the sole named beneficiary were to die in a common
accident, which of the following is true?
This clause provides the payment of proceeds to the insured's
estate
When can a policyowner change a revocable beneficiary?
Anytime
Which settlement option pays a stated amount to an annuitant,
but no residual value to a beneficiary?
Life Income
Which type of life insurance beneficiary requires his/her consent
when a change of beneficiary is attempted by the policyowner?
Irrevocable beneficiary
How would a contingent beneficiary receive the policy proceeds
in an Accidental Death and Dismemberment (AD&D) policy?
If the primary beneficiary dies before the insured
Which statement is true regarding a minor beneficiary?
Normally, a guardian is required to be appointed in the
Beneficiary clause of the contract
, A whole life insurance policyowner does not wish to continue
making premium payments. Which of the following enables the
policyowner to sell the policy for more than its cash value?
Life settlement contract
What is the underlying concept regarding level premiums?
The early years are charged more than what is needed
Which statement regarding the Change of Beneficiary provision
is true?
The policyowner can change the beneficiary
A primary beneficiary has died before the insured in a life
insurance policy. A contingent beneficiary is also named in the
policy. Which of the following will occur when the insured
dies?
Proceeds will go to the contingent beneficiary
T is the policyowner for a Life Insurance policy with an
Irrevocable beneficiary designation. If T wishes to change the
beneficiary, T must obtain permission from the
beneficiary
A level premium indicates:
the premium is fixed for the entire duration of the contract
