Life Insurance Illinois ExamFX
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1. What is the main purpose of the Sev- C. It requires level premium payments for 7 years.
en-pay Test?
A. It guarantees the minimum inter-
est
B. It determines if the insurance pol-
icy is a MEC
C. It requires level premium pay-
ments for 7 years.
D. It ensures that the policy benefits
are paid out in 7 years
2. Which of the following is true of C. It is term coverage that is convertible to permanent
a children's rider added to an in- insurance at or prior to the child reaching the maxi-
sured's permanent life insurance mum coverage age.
policy?
A. The policy covers only the natural
children of the insured.
B. Each child covered must show ev-
idence of insurability
C. It is term coverage that is convert-
ible to permanent insurance at or
prior to the child reaching the maxi-
mum coverage age.
D. It is permanent insurance.
3. If only one party to an insurance B. Unilateral
contract has made a legally enforce-
able promise, what kind of contract
is it?
A. A legal (but unetheical) contract
B. Unilateral
, Life Insurance Illinois ExamFX
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C. Adhesion
D. Conditional
4. Which policy component decreases D. Face amount
in decreasing term insurance?
A. Cash value
B. Dividend
C. Premium
D. Face amount
5. If an insured worker has earned 40 C. Fully insured.
quarters of coverage, the worker's
status under Social Security disabil- A worker is fully insured under Social Security if the
ity is worker has accumulated the required number of
A. Correctly insured. credits based on his/her age.
B. Permanently insured.
C. Fully insured.
D. Partially insured.
6. The insured under a $100,000 life in- C. $100,000
surance policy with a triple indem-
nity rider for accidental death was Since the insured contributed to his own death, the
killed in a car accident. It was de- triple indemnity rider is void, but the beneficiary will
termined that the accident was his still receive the policy's death benefit.
fault. The triple indemnity rider for
accidental death was killed in a car
accident. It was determined that the
accident was his fault. The triple in-
demnity rider in the policy speci-
fies that the death must not be con-
tributed to by the insured in any
amount. In this case, what will the
, Life Insurance Illinois ExamFX
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policy beneficiary receive?
A. $0
B. $50,000 (50% of the policy value)
C. $100,000
D. $300,000 (Triple the amount of
policy value)
7. All of the following are duties and D. Change any incorrect statement on the application
responsibilities of producers at the by personally initialing next to the corrected state-
time of application EXCEPT ment
A. Explain the nature and type of any
receipt the producers is giving to the
applicant
B. Probe beyond the stated ques-
tions if the producer feels the appli-
cant is misrepresenting or conceal-
ing information
C. Check to make sure that there are
no unanswered questions on the ap-
plication
D. Change any incorrect statement
on the application by personally ini-
tialing next to the corrected state-
ment
8. An employee quits his job and con- D. Attained age
verts his group policy to an individ-
ual policy; the premium for the indi- An individual policy must be issued based on the
vidual policy will be based on his individual's attained age
A. Experience Rating
B. Group rate.
, Life Insurance Illinois ExamFX
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C. Insurer's scheduled rate.
D. Attained age
9. In insurance, an offer is usually A. An applicant submits an application to the insurer
made when Acceptance takes place when an insurer's under-
A. An applicant submits an applica- writer approves the application and issues a policy
tion to the insurer
B. The insurer approves the applica-
tion and receives the initial premi-
um
C. The agent hands the policy to the
policyholder
D. An agent explains a policy to a
potential applicant
10. An insured purchased a life insur- B. If the primary beneficiary predeceased the in-
ance policy on his life naming his sured
wife as primary beneficiary, and his
daughter as contingent beneficiary. The daughter would become the primary beneficiary
Under what circumstances could the here and then receive the insured's death benefit
daughter collect the death benefit?
A. If the insured died from accidental
means
B. If the primary beneficiary prede-
ceased the insured
C. When the insured dies, the pri-
mary and contingent beneficiaries
share death benefits equally.
D. With the primary beneficiary's
written consent
11. A. Mutual
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1. What is the main purpose of the Sev- C. It requires level premium payments for 7 years.
en-pay Test?
A. It guarantees the minimum inter-
est
B. It determines if the insurance pol-
icy is a MEC
C. It requires level premium pay-
ments for 7 years.
D. It ensures that the policy benefits
are paid out in 7 years
2. Which of the following is true of C. It is term coverage that is convertible to permanent
a children's rider added to an in- insurance at or prior to the child reaching the maxi-
sured's permanent life insurance mum coverage age.
policy?
A. The policy covers only the natural
children of the insured.
B. Each child covered must show ev-
idence of insurability
C. It is term coverage that is convert-
ible to permanent insurance at or
prior to the child reaching the maxi-
mum coverage age.
D. It is permanent insurance.
3. If only one party to an insurance B. Unilateral
contract has made a legally enforce-
able promise, what kind of contract
is it?
A. A legal (but unetheical) contract
B. Unilateral
, Life Insurance Illinois ExamFX
Study online at https://quizlet.com/_bn7kzc
C. Adhesion
D. Conditional
4. Which policy component decreases D. Face amount
in decreasing term insurance?
A. Cash value
B. Dividend
C. Premium
D. Face amount
5. If an insured worker has earned 40 C. Fully insured.
quarters of coverage, the worker's
status under Social Security disabil- A worker is fully insured under Social Security if the
ity is worker has accumulated the required number of
A. Correctly insured. credits based on his/her age.
B. Permanently insured.
C. Fully insured.
D. Partially insured.
6. The insured under a $100,000 life in- C. $100,000
surance policy with a triple indem-
nity rider for accidental death was Since the insured contributed to his own death, the
killed in a car accident. It was de- triple indemnity rider is void, but the beneficiary will
termined that the accident was his still receive the policy's death benefit.
fault. The triple indemnity rider for
accidental death was killed in a car
accident. It was determined that the
accident was his fault. The triple in-
demnity rider in the policy speci-
fies that the death must not be con-
tributed to by the insured in any
amount. In this case, what will the
, Life Insurance Illinois ExamFX
Study online at https://quizlet.com/_bn7kzc
policy beneficiary receive?
A. $0
B. $50,000 (50% of the policy value)
C. $100,000
D. $300,000 (Triple the amount of
policy value)
7. All of the following are duties and D. Change any incorrect statement on the application
responsibilities of producers at the by personally initialing next to the corrected state-
time of application EXCEPT ment
A. Explain the nature and type of any
receipt the producers is giving to the
applicant
B. Probe beyond the stated ques-
tions if the producer feels the appli-
cant is misrepresenting or conceal-
ing information
C. Check to make sure that there are
no unanswered questions on the ap-
plication
D. Change any incorrect statement
on the application by personally ini-
tialing next to the corrected state-
ment
8. An employee quits his job and con- D. Attained age
verts his group policy to an individ-
ual policy; the premium for the indi- An individual policy must be issued based on the
vidual policy will be based on his individual's attained age
A. Experience Rating
B. Group rate.
, Life Insurance Illinois ExamFX
Study online at https://quizlet.com/_bn7kzc
C. Insurer's scheduled rate.
D. Attained age
9. In insurance, an offer is usually A. An applicant submits an application to the insurer
made when Acceptance takes place when an insurer's under-
A. An applicant submits an applica- writer approves the application and issues a policy
tion to the insurer
B. The insurer approves the applica-
tion and receives the initial premi-
um
C. The agent hands the policy to the
policyholder
D. An agent explains a policy to a
potential applicant
10. An insured purchased a life insur- B. If the primary beneficiary predeceased the in-
ance policy on his life naming his sured
wife as primary beneficiary, and his
daughter as contingent beneficiary. The daughter would become the primary beneficiary
Under what circumstances could the here and then receive the insured's death benefit
daughter collect the death benefit?
A. If the insured died from accidental
means
B. If the primary beneficiary prede-
ceased the insured
C. When the insured dies, the pri-
mary and contingent beneficiaries
share death benefits equally.
D. With the primary beneficiary's
written consent
11. A. Mutual
