ALU 202 EXAM TEST BANK NEWEST 2025/2026 TESTING
ACTUAL EXAM WITH 210 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+ (BRAND NEW) GUARANTEED PASS
All of the following statements regarding a protective value study of underwriting requirements
are correct EXCEPT:
A. It should evaluate which requirement identified the underlying impairment.
B. It should consider the proposed insured's behavior in accepting or rejecting the offered
policy.
C. It should measure the difference between select and ultimate mortality.
D. It should ensure that the offered product is "at the market".
C. It should measure the difference between select and ultimate mortality.
The preferred risk stratification model employed by the majority of the life insurance industry is:
A. point system
B. knock-out system
C. weighted average
D. sub-stratification
B. knock-out system
if individual does not qualify for all criteria they are "knocked out" of a risk class - presents
issue for those who meet preferred criteria on all but one factor
,To apply for a policy change from tobacco to non-tobacco rates, which of the following is/are
typically required?
A. statement of non-tobacco use
B. MIB check
C. paramedical exam
> A only is correct
> A and B are correct
> B and C are correct
> A, B and C are all correct
> A and B are correct
Prior to the 1970s, a standard risk was considered to be a proposed insured:
A. between the ages of 35-55
B with a family history of CAD
C. without a rating or surcharge
D. with hazardous occupations
C. without a rating or surcharge
All of the following risk factors are used by many companies to mitigate the accidental death
hazard in setting their preferred criteria EXCEPT:
,A. gender
B. avocations
C. criminal history
D. hazardous occupations
A. gender (pg 85)
Underwriting criteria generally used in the pricing of preferred policies include which of the
following?
A. blood pressure
B. cholesterol
C. family history
> A only is correct
> A and B are correct
> B and C are correct
> A, B, and C are correct
A, B, and C are correct
Term policies that have reached the end of their period of specified coverage and are
considered for renewal is:
A. reinstatements
B. re-entries
C. conversions
D. internal exchanges
, B. re-entries
All of the following are pricing components of life insurance established by regulation EXCEPT:
A. reserve basis
B. tax law
C. nonforfeiture laws
D. asset risk
D. asset risk
(The risk that assets supporting the product lose some/all of their value)
(Nonforfeiture law: allow return of excess premium if insured lapses policy) (Reserve
basis: enough $ held to pay benefits to policy holders)
The relationship of mortality savings from a requirement to the cost of administering the
particular requirement is:
A. surplus
B. protective value
C. uniquely protective
D. reserve value
B. protective value
ACTUAL EXAM WITH 210 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+ (BRAND NEW) GUARANTEED PASS
All of the following statements regarding a protective value study of underwriting requirements
are correct EXCEPT:
A. It should evaluate which requirement identified the underlying impairment.
B. It should consider the proposed insured's behavior in accepting or rejecting the offered
policy.
C. It should measure the difference between select and ultimate mortality.
D. It should ensure that the offered product is "at the market".
C. It should measure the difference between select and ultimate mortality.
The preferred risk stratification model employed by the majority of the life insurance industry is:
A. point system
B. knock-out system
C. weighted average
D. sub-stratification
B. knock-out system
if individual does not qualify for all criteria they are "knocked out" of a risk class - presents
issue for those who meet preferred criteria on all but one factor
,To apply for a policy change from tobacco to non-tobacco rates, which of the following is/are
typically required?
A. statement of non-tobacco use
B. MIB check
C. paramedical exam
> A only is correct
> A and B are correct
> B and C are correct
> A, B and C are all correct
> A and B are correct
Prior to the 1970s, a standard risk was considered to be a proposed insured:
A. between the ages of 35-55
B with a family history of CAD
C. without a rating or surcharge
D. with hazardous occupations
C. without a rating or surcharge
All of the following risk factors are used by many companies to mitigate the accidental death
hazard in setting their preferred criteria EXCEPT:
,A. gender
B. avocations
C. criminal history
D. hazardous occupations
A. gender (pg 85)
Underwriting criteria generally used in the pricing of preferred policies include which of the
following?
A. blood pressure
B. cholesterol
C. family history
> A only is correct
> A and B are correct
> B and C are correct
> A, B, and C are correct
A, B, and C are correct
Term policies that have reached the end of their period of specified coverage and are
considered for renewal is:
A. reinstatements
B. re-entries
C. conversions
D. internal exchanges
, B. re-entries
All of the following are pricing components of life insurance established by regulation EXCEPT:
A. reserve basis
B. tax law
C. nonforfeiture laws
D. asset risk
D. asset risk
(The risk that assets supporting the product lose some/all of their value)
(Nonforfeiture law: allow return of excess premium if insured lapses policy) (Reserve
basis: enough $ held to pay benefits to policy holders)
The relationship of mortality savings from a requirement to the cost of administering the
particular requirement is:
A. surplus
B. protective value
C. uniquely protective
D. reserve value
B. protective value
