LIFE INSURANCE FINAL PAPER ACTUAL
QUESTIONS SOLUTIONS ALREADY PASSED
●● A contract that has as its basic function the systematic liquidation of
accumulated assets through periodic payments is called an:
A.indemnity contract
B.investment contract
C.endowment
D.annuity
Answer: D
●● An insurance producer takes an application for a life insurance policy
but does not collect the initial premium. On delivery of the policy to the
proposed insured, the producer must collect the initial premium and
which of the following?
A.A copy of the MIB report
B.The insured's signed statement of continued good health
,C.A copy of the conditional receipt
D.A copy of the temporary insurance agreement that covered the period
between the application date and the delivery date.
Answer: B
●● An employer can deduct premium payments as an ordinary business
expense for which of the following life coverages?
A.Buy and Sell Agreements
B.Group
C.Key Employee
D.Joint Life, if the business is named as the beneficiary
Answer: B
●● A producer takes applications from identical twins who want to buy
the same type of policy in the same amount. The insurer issues the
policies as applied for, but charges a 25 percent higher premium for one
of the policies. The difference in premiums is probably due to which of
the following factors?
A.Incontestability
B.Insurable interest
, C.Consideration
D.Risk classification
Answer: D
●● In the event of an insured's death, which of the following provides an
income for the family during a designated period of time followed by a
lump sum death benefit?
A.Family Income rider
B.Survivorship Life policy
C.Joint Life policy
D.Modified Life policy
Answer: A
●● Which of the following statements is CORRECT about Group Life
conversion privileges?
A.Under the COBRA law, a departing employee may elect to remain a
member of the Group Life plan for a limited period of time.
QUESTIONS SOLUTIONS ALREADY PASSED
●● A contract that has as its basic function the systematic liquidation of
accumulated assets through periodic payments is called an:
A.indemnity contract
B.investment contract
C.endowment
D.annuity
Answer: D
●● An insurance producer takes an application for a life insurance policy
but does not collect the initial premium. On delivery of the policy to the
proposed insured, the producer must collect the initial premium and
which of the following?
A.A copy of the MIB report
B.The insured's signed statement of continued good health
,C.A copy of the conditional receipt
D.A copy of the temporary insurance agreement that covered the period
between the application date and the delivery date.
Answer: B
●● An employer can deduct premium payments as an ordinary business
expense for which of the following life coverages?
A.Buy and Sell Agreements
B.Group
C.Key Employee
D.Joint Life, if the business is named as the beneficiary
Answer: B
●● A producer takes applications from identical twins who want to buy
the same type of policy in the same amount. The insurer issues the
policies as applied for, but charges a 25 percent higher premium for one
of the policies. The difference in premiums is probably due to which of
the following factors?
A.Incontestability
B.Insurable interest
, C.Consideration
D.Risk classification
Answer: D
●● In the event of an insured's death, which of the following provides an
income for the family during a designated period of time followed by a
lump sum death benefit?
A.Family Income rider
B.Survivorship Life policy
C.Joint Life policy
D.Modified Life policy
Answer: A
●● Which of the following statements is CORRECT about Group Life
conversion privileges?
A.Under the COBRA law, a departing employee may elect to remain a
member of the Group Life plan for a limited period of time.
