rmin 2005 exam 4 Questions and Answers
Graded A+
From a risk management perspective, which of the following best describes
"premature death?" - Correct answer-Death of a family income earner during a
dependency period
Select an answer that describes examples of business-related premature death
exposures. - Correct answer-Death of a key employee with expert knowledge
Which of the following specific needs for life insurance involves things like legal
fees and taxes? - Correct answer-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 - Correct answer-Mikayla would need about less insurance (by around
$75,000) if she plans to retire earlier earlier
What is a level term contract? - Correct answer-A form of term insurance in which
the face amount does not change over time
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,Which of the following is not among the three most popular forms of life insurance
today? - Correct answer-Variable Life
Which of the following is TRUE about whole life insurance? - Correct answer-
Cash values are guaranteed amounts that are stated in the policy
Which of the following is NOT true about Universal Life Insurance - Correct
answer-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? -
Correct answer-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? - Correct answer-class
a renewable term policy - Correct answer-People who experience health problems
that might prevent them from obtaining other insurance at a comparable price are
more likely to renew their policies
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, a universal life policy that allows the insured to periodically increase the amount of
coverage - Correct answer-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 - Correct answer-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? -
Correct answer-Someone who has developed a chronic illness and probably not
insurable anymore
Lump-sum option - Correct answer-Results in the insurer paying the total death
benefit of the policy as a single settlement
Fixed-period option - Correct answer-Results in the insurer paying proceeds in
equal installments over a specified time period
Fixed-amount option - Correct answer-Results the payment of a specific amount
over a period of time that is determined by the time and frequency of the payments
and the interest rate paid by the insurer
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
Graded A+
From a risk management perspective, which of the following best describes
"premature death?" - Correct answer-Death of a family income earner during a
dependency period
Select an answer that describes examples of business-related premature death
exposures. - Correct answer-Death of a key employee with expert knowledge
Which of the following specific needs for life insurance involves things like legal
fees and taxes? - Correct answer-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 - Correct answer-Mikayla would need about less insurance (by around
$75,000) if she plans to retire earlier earlier
What is a level term contract? - Correct answer-A form of term insurance in which
the face amount does not change over time
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Which of the following is not among the three most popular forms of life insurance
today? - Correct answer-Variable Life
Which of the following is TRUE about whole life insurance? - Correct answer-
Cash values are guaranteed amounts that are stated in the policy
Which of the following is NOT true about Universal Life Insurance - Correct
answer-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? -
Correct answer-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? - Correct answer-class
a renewable term policy - Correct answer-People who experience health problems
that might prevent them from obtaining other insurance at a comparable price are
more likely to renew their policies
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, a universal life policy that allows the insured to periodically increase the amount of
coverage - Correct answer-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 - Correct answer-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? -
Correct answer-Someone who has developed a chronic illness and probably not
insurable anymore
Lump-sum option - Correct answer-Results in the insurer paying the total death
benefit of the policy as a single settlement
Fixed-period option - Correct answer-Results in the insurer paying proceeds in
equal installments over a specified time period
Fixed-amount option - Correct answer-Results the payment of a specific amount
over a period of time that is determined by the time and frequency of the payments
and the interest rate paid by the insurer
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
