Life Exam
What does "level" refer to in level term insurance? - ANS-Face amount
If a policy includes a free-look period of at least 10 days, the Buyer's guide may be
delivered to the applicant - ANS-With he policy.
An insurer neglects to pay a legitimate claim that is covered under the terms of the
policy. Which of the following insurance principles has the insurer violated? -
ANS-Consideration
Which of the following statements is correct regarding a whole life policy? - ANS-
When a reduced-paid up nonforfeiture option is chosen, what happens to the face
amount of the policy? - ANS-It is reduced to the amount of what the cash value would
buy as a single premium.
The annuity owner dies while the annuity is still in the accumulation stage. Which of the
following is TRUE? - ANS-The beneficiary will receive the greater of the money paid into
the annuity or the cash value.
What is the term for how frequently a policy owner is required to pay the policy
premium? - ANS-Mode
In a life settlement contract, whom does the life settlement broker represent? - ANS-The
owner
The premiums paid by the employer in a business life insurance policy are - ANS-tax
deductible by the employer
The rider in a whole life policy that allows the company to forgo collecting the premium if
the insured is disabled is called - ANS-Waiver of premium
Annually renewable term policies provide a level death benefit for a premium that -
ANS-Increases annually
, Which of the following terms means a result of calculation based on the average
number of months the insured is projected to live due to medical history and mortality
factors? - ANS-Life expectancy
Which of the following is NOT true regarding the annuitant? - ANS-The annuitant cannot
be the same person as the annuity owner.
An insurance contract requires that both the insured and the insurer meet certain
conditions in order for the contract to be enforceable. What contract characteristic does
this describe? - ANS-Conditional
An insurance policy that only requires a payment of premium at its inception, provides
insurance protection for the life of the insured, and matures at the insured's age 100 is
called - ANS-Single premium whole life
A producer agent must do all of the following when delivering a new policy to the
insured EXCEPT - ANS-Disclose commissions earned from the sale of the policy.
All of the following are true of an annuity owner EXCEPT - ANS-The owner must be the
party to receive benefits.
If the policy owner, the insured, and the beneficiary under a life insurance policy are
three different people, who has the ownership rights? - ANS-Policyowner
An insured under a life insurance policy has been diagnosed with a terminal illness and
has 6 months to live. The insured knows that his financial state will worsen even more
with the upcoming medical expenses. What option could the insured utilize? -
ANS-Viatical settlement
At the time the insured purchased her life insurance policy, she added a rider that will
allow her to purchase additional insurance in the future without having to prove
insurability. This rider is called - ANS-Guaranteed insurability
Which policy component decreases in decreasing term insurance? - ANS-Face amount
The policy owner of an adjustable life policy wants to increase the death benefit. Which
of the following statements is correct regarding this change. - ANS-The death benefit
can be increase by providing evidence of insurability.
What does "level" refer to in level term insurance? - ANS-Face amount
If a policy includes a free-look period of at least 10 days, the Buyer's guide may be
delivered to the applicant - ANS-With he policy.
An insurer neglects to pay a legitimate claim that is covered under the terms of the
policy. Which of the following insurance principles has the insurer violated? -
ANS-Consideration
Which of the following statements is correct regarding a whole life policy? - ANS-
When a reduced-paid up nonforfeiture option is chosen, what happens to the face
amount of the policy? - ANS-It is reduced to the amount of what the cash value would
buy as a single premium.
The annuity owner dies while the annuity is still in the accumulation stage. Which of the
following is TRUE? - ANS-The beneficiary will receive the greater of the money paid into
the annuity or the cash value.
What is the term for how frequently a policy owner is required to pay the policy
premium? - ANS-Mode
In a life settlement contract, whom does the life settlement broker represent? - ANS-The
owner
The premiums paid by the employer in a business life insurance policy are - ANS-tax
deductible by the employer
The rider in a whole life policy that allows the company to forgo collecting the premium if
the insured is disabled is called - ANS-Waiver of premium
Annually renewable term policies provide a level death benefit for a premium that -
ANS-Increases annually
, Which of the following terms means a result of calculation based on the average
number of months the insured is projected to live due to medical history and mortality
factors? - ANS-Life expectancy
Which of the following is NOT true regarding the annuitant? - ANS-The annuitant cannot
be the same person as the annuity owner.
An insurance contract requires that both the insured and the insurer meet certain
conditions in order for the contract to be enforceable. What contract characteristic does
this describe? - ANS-Conditional
An insurance policy that only requires a payment of premium at its inception, provides
insurance protection for the life of the insured, and matures at the insured's age 100 is
called - ANS-Single premium whole life
A producer agent must do all of the following when delivering a new policy to the
insured EXCEPT - ANS-Disclose commissions earned from the sale of the policy.
All of the following are true of an annuity owner EXCEPT - ANS-The owner must be the
party to receive benefits.
If the policy owner, the insured, and the beneficiary under a life insurance policy are
three different people, who has the ownership rights? - ANS-Policyowner
An insured under a life insurance policy has been diagnosed with a terminal illness and
has 6 months to live. The insured knows that his financial state will worsen even more
with the upcoming medical expenses. What option could the insured utilize? -
ANS-Viatical settlement
At the time the insured purchased her life insurance policy, she added a rider that will
allow her to purchase additional insurance in the future without having to prove
insurability. This rider is called - ANS-Guaranteed insurability
Which policy component decreases in decreasing term insurance? - ANS-Face amount
The policy owner of an adjustable life policy wants to increase the death benefit. Which
of the following statements is correct regarding this change. - ANS-The death benefit
can be increase by providing evidence of insurability.
