LIFE INSURANCE EXAM ILLINOIS ACTUAL
SCRIPT WITH 100 PERCENT CORRECT
ANSWERS
◉ The full premium was submitted with the application for the
life insurance, and the policy was issued two weeks later as
requested. When does coverage become effective?
Answer: as of the application date
if the full premium was submitted with the application and the
policy was issued as requested, the policy effective date would
generally coincide with the date of application.
◉ Which explains the policy owner rights to change beneficiaries,
choose options and receive proceeds of a policy?
Answer: Owner's rights
◉ Which option is being utilized when insurer acculumates
dividents at interest and then uses the accumulated dividends
plus interest, and the policy cash value to pay up the policy early
Answer: paid up option
this is different from paid up additions, in which the insured can
use dividends to buy additional policies that increase the face
amount of the original policy
, ◉ IN which of the following instances would the premium be tax
dedcutible
Answer: Premiums paid on a 30,000 ife insurance group term life
insuranc eplan for an employee
◉ A policyowner who is also the insured wants to name her
husband as the beneficiary of her policy. She also wishes to retain
all of the rights of ownership. The policyowner should have have
her husband named as
Answer: Revocable beneficiary
◉ Which option is being used when the insurer accumulates
dividends at interest, plus interest and then uses the accumulated
dividends plus interest and the policy cash value to pay the policy
up early?
Answer: paid up option
◉ Which nonforfeiturue option has the highest amount of
insurance protection
Answer: extended coverage
The extended term nonforfeitfture option has the same face
amount as the original policy but for a shorter period of time
◉ Should the Commissioner request information from a
certificate holder, licensee, or other person under the jurisdiction
of the commissioner. If no time specified they must comply
Answer: in 30 days.
SCRIPT WITH 100 PERCENT CORRECT
ANSWERS
◉ The full premium was submitted with the application for the
life insurance, and the policy was issued two weeks later as
requested. When does coverage become effective?
Answer: as of the application date
if the full premium was submitted with the application and the
policy was issued as requested, the policy effective date would
generally coincide with the date of application.
◉ Which explains the policy owner rights to change beneficiaries,
choose options and receive proceeds of a policy?
Answer: Owner's rights
◉ Which option is being utilized when insurer acculumates
dividents at interest and then uses the accumulated dividends
plus interest, and the policy cash value to pay up the policy early
Answer: paid up option
this is different from paid up additions, in which the insured can
use dividends to buy additional policies that increase the face
amount of the original policy
, ◉ IN which of the following instances would the premium be tax
dedcutible
Answer: Premiums paid on a 30,000 ife insurance group term life
insuranc eplan for an employee
◉ A policyowner who is also the insured wants to name her
husband as the beneficiary of her policy. She also wishes to retain
all of the rights of ownership. The policyowner should have have
her husband named as
Answer: Revocable beneficiary
◉ Which option is being used when the insurer accumulates
dividends at interest, plus interest and then uses the accumulated
dividends plus interest and the policy cash value to pay the policy
up early?
Answer: paid up option
◉ Which nonforfeiturue option has the highest amount of
insurance protection
Answer: extended coverage
The extended term nonforfeitfture option has the same face
amount as the original policy but for a shorter period of time
◉ Should the Commissioner request information from a
certificate holder, licensee, or other person under the jurisdiction
of the commissioner. If no time specified they must comply
Answer: in 30 days.
