180 REAL QUESTIONS AND CORRECT ANSWERS (CORRECT
VERIFIED SOLUTIONS) A NEW UPDATED VERSION
|GUARANTEED PASS
An insurance producer may not act as an agent for an insurer unless
he/she has become which of the following?
ANSWERS: appointed
What is the purpose of a fixed-period settlement option?
ANSWERS: To provide a guaranteed income for a certain amount of
time
Which of the following types of risk will result in the highest premium?
ANSWERS: substandard risk
The Ownership provision entitles the policyowner to do all of the
following EXCEPT
ANSWERS: set premium rates
,All of the following are true regarding the guaranteed insurability
rider EXCEPT
ANSWERS: This rider is available to all insureds with no additional
premium.
Which of the following will be included in a policy summary?
ANSWERS: premium amounts and surrender values
What is a definition of a unilateral contract?
ANSWERS: One-sided; only one party makes an enforceable promise
Assuming that a policy does not contain an unconditional refund
provision of at least 10 days, when must a Buyer's Guide and policy
summary be
provided?
ANSWERS: before accepting the initial premium
All of the following entities regulate variable life policies EXCEPT
ANSWERS: Guaranty Association
Which of the following are NOT fundable by annuities?
ANSWERS: death benefits
,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
ANSWERS: guaranteed insurability
Which of the following terms describes making false statements about
the financial condition of any insurer that are intended to injure any
person
engaged in the business of insurance?
ANSWERS: defamation
All other factors being equal, the least expensive first-year
premium payment is found in
ANSWERS: annually renewable term
Which life insurance settlement option guarantees payments for the
lifetime of the recipient, but also specifies a guaranteed period,
during which, if the original recipient dies, the payments will
continue to a designated
beneficiary?
ANSWERS: life income with period certain
What is the name of the insured who enters into a viatical settlement?
ANSWERS: viator
, When would a misrepresentation on the insurance application be
considered fraud?
ANSWERS: intentional and material
Which of the following statements regarding HIV testing for
insurance purposes is NOT true?
ANSWERS: insurers are barred from requesting HIV testing
The insured had his wife named as the beneficiary of his life insurance
policy. To ensure that his wife had income for life after the
insured's death, he chose the life income settlement option. The
amount of payments will be determined by taking into account all
of the following EXCEPT
ANSWERS: insured's age at death
What does "liquidity" refer to in a life insurance policy?
ANSWERS: cash values can be borrowed at any time
If an insurer issued a policy based on the application that had
unanswered questions, which of the following will be TRUE?
ANSWERS: The policy will be interpreted as if the insurer waived its
right to have an answer on the application.