LIFE ONLY AGENT UPDATED TEST EXAM MANUAL
QUESTIONS AND SOLUTIONS GUARANTEE A+
✔✔All of the following are exempt from the 10% tax penalty for early qualified plan
withdrawals EXCEPT - ✔✔Stock purchase
✔✔An interest-sensitive life insurance policyowner may be able to withdraw the policy's
cash value interest free. The provision that allows this is called - ✔✔Partial Surrender
✔✔The suicide clause of a life insurance policy states that if an insured commits suicide
within a stated period from the policy's inception, the insurer will only be liable for a
return of premiums paid - ✔✔minus indebtedness and without interest
✔✔What would be an expense factor in an insurance program? - ✔✔Mortality costs
✔✔All of the following may be an unfair claims practice EXCEPT - ✔✔Denying an
insured's fraudulent claim
✔✔The Fair Credit and Reporting Act's main purpose is to - ✔✔protect consumers with
guidelines regarding credit reporting and distribution
✔✔Under a contract of adhesion, - ✔✔the terms must be accepted or rejected in full
✔✔Dorian exercised a nonforfeiture option by using his life policy's cash value to
purchase an extended term insurance option. When the term insurance expires, -
✔✔the protection ends
✔✔Level premium permanent insurance accumulates a reserve that will eventually -
✔✔equal the face amount of the policy
✔✔What is a corridor in relation to a Universal Life insurance policy? - ✔✔The gap
between the total death benefit and the policy's cash value
✔✔The least expensive option to pay off a 30-year mortgage balance would be -
✔✔decreasing term life
✔✔If an insured's age on a life insurance policy has been misstated, what is the
insurer's liability if the insured dies? - ✔✔A prorated death benefit based on the amount
of insurance the insured's premiums would have been if purchased at the correct age
✔✔What is known as the immediate specific event causing loss and giving rise to risk? -
✔✔peril
, ✔✔A whole life policy option where extended term insurance is selected is called a(n) -
✔✔nonforfeiture option
✔✔A life insurance policy that has premiums fully paid up within a stated time period is
called - ✔✔limited payment insurance
✔✔The cause of a loss is referred to as a(n) - ✔✔peril
✔✔Fixed annuities provide each of the following EXCEPT - ✔✔Hedge against inflation
✔✔Which approach predicts a person's earning potential and determines how much of
that amount would be devoted to dependents? - ✔✔Human life value approach
✔✔When the principal gives the agent authority in writing, it's referred to as -
✔✔express authority
✔✔When calculating the amount of life insurance needed for an income earner, what
has to be determined when using the Needs Approach? - ✔✔The family's financial
objectives if the income earner were to die or become disabled
✔✔A life insurance policy that contains a guaranteed interest rate with the chance to
earn a rate that is higher than the guaranteed rate is called - ✔✔universal life
✔✔Which of the following is required for an insurer to conduct business in this state? -
✔✔Certificate of authority
✔✔An annuitant is guaranteed to NOT outlive their benefits with a(n) - ✔✔Guaranteed
lifetime withdrawal benefit
✔✔Ohio requires that a licensee complete __ hours of continuing education on the
subject of ethics every reporting period. - ✔✔3
✔✔A minor may receive a life insurance policy's death benefit ONLY - ✔✔if the minor
has an appointed guardian
✔✔Which of these factors help determine an insured's life insurance premium? -
✔✔avocation (hobby)
✔✔Which of the following protects a policyowner from a misrepresentation caused by
an innocent mistake? - ✔✔Incontestable clause
QUESTIONS AND SOLUTIONS GUARANTEE A+
✔✔All of the following are exempt from the 10% tax penalty for early qualified plan
withdrawals EXCEPT - ✔✔Stock purchase
✔✔An interest-sensitive life insurance policyowner may be able to withdraw the policy's
cash value interest free. The provision that allows this is called - ✔✔Partial Surrender
✔✔The suicide clause of a life insurance policy states that if an insured commits suicide
within a stated period from the policy's inception, the insurer will only be liable for a
return of premiums paid - ✔✔minus indebtedness and without interest
✔✔What would be an expense factor in an insurance program? - ✔✔Mortality costs
✔✔All of the following may be an unfair claims practice EXCEPT - ✔✔Denying an
insured's fraudulent claim
✔✔The Fair Credit and Reporting Act's main purpose is to - ✔✔protect consumers with
guidelines regarding credit reporting and distribution
✔✔Under a contract of adhesion, - ✔✔the terms must be accepted or rejected in full
✔✔Dorian exercised a nonforfeiture option by using his life policy's cash value to
purchase an extended term insurance option. When the term insurance expires, -
✔✔the protection ends
✔✔Level premium permanent insurance accumulates a reserve that will eventually -
✔✔equal the face amount of the policy
✔✔What is a corridor in relation to a Universal Life insurance policy? - ✔✔The gap
between the total death benefit and the policy's cash value
✔✔The least expensive option to pay off a 30-year mortgage balance would be -
✔✔decreasing term life
✔✔If an insured's age on a life insurance policy has been misstated, what is the
insurer's liability if the insured dies? - ✔✔A prorated death benefit based on the amount
of insurance the insured's premiums would have been if purchased at the correct age
✔✔What is known as the immediate specific event causing loss and giving rise to risk? -
✔✔peril
, ✔✔A whole life policy option where extended term insurance is selected is called a(n) -
✔✔nonforfeiture option
✔✔A life insurance policy that has premiums fully paid up within a stated time period is
called - ✔✔limited payment insurance
✔✔The cause of a loss is referred to as a(n) - ✔✔peril
✔✔Fixed annuities provide each of the following EXCEPT - ✔✔Hedge against inflation
✔✔Which approach predicts a person's earning potential and determines how much of
that amount would be devoted to dependents? - ✔✔Human life value approach
✔✔When the principal gives the agent authority in writing, it's referred to as -
✔✔express authority
✔✔When calculating the amount of life insurance needed for an income earner, what
has to be determined when using the Needs Approach? - ✔✔The family's financial
objectives if the income earner were to die or become disabled
✔✔A life insurance policy that contains a guaranteed interest rate with the chance to
earn a rate that is higher than the guaranteed rate is called - ✔✔universal life
✔✔Which of the following is required for an insurer to conduct business in this state? -
✔✔Certificate of authority
✔✔An annuitant is guaranteed to NOT outlive their benefits with a(n) - ✔✔Guaranteed
lifetime withdrawal benefit
✔✔Ohio requires that a licensee complete __ hours of continuing education on the
subject of ethics every reporting period. - ✔✔3
✔✔A minor may receive a life insurance policy's death benefit ONLY - ✔✔if the minor
has an appointed guardian
✔✔Which of these factors help determine an insured's life insurance premium? -
✔✔avocation (hobby)
✔✔Which of the following protects a policyowner from a misrepresentation caused by
an innocent mistake? - ✔✔Incontestable clause
