CLU HS 323 Quiz Questions | Questions with 100% Correct Answers | Latest Update | Verified

CLU HS 323 Quiz Questions | Questions with 100% Correct Answers | Latest Update | Verified 28. Which of the following statements concerning factors used in the selection and classification process of applicants for life insurance is correct? (A) Applicants must submit document proof of age as part of the application. (B) Any past health record of the applicant is of little real relevance in the selection process. (C) The determination of an applicant's mortality expectation involves an examination of the relationship between height, weight, and girth. (D) The influence of heredity may be most significant when evaluating a young person's application. - (C) The determination of an applicant's mortality expectation involves an examination of the relationship between height, weight, and girth. 27. Which of the following statements concerning current assumption whole life is correct? (A) It has a redetermination feature that reconfigures the premium amount in light of recent experience. (B) It is a variation of traditional whole life that provides no guarantees for the policy-owner. (C) Its cash value development is more like that of variable life than of any other policy. (D) It is participating insurance that has several unique dividend features - (A) It has a redetermination feature that reconfigures the premium amount in light of recent experience. 29. Which of the following reinsurance plans is proportional reinsurance? (A) a stop-loss agreement (B) a coinsurance agreement (C) a catastrophe agreement (D) a spread-loss agreement - (B) a coinsurance agreement 30. Which of the following statements concerning the yearly renewable term plan of reinsurance is correct? (A) The primary company, rather than the reinsurer, is responsible for surrender values and policy loans. (B) The reinsurer is liable only for the portion of the policy death benefit equal to the reserve on the amount of insurance above the primary company's retention. (C) The reinsurer is responsible for holding the policy reserves. (D) The plan requires the primary company to transfer most of the premiums to the reinsurer and thus leads to a very slow growth in the primary company's assets. - (A) The primary company, rather than the reinsurer, is responsible for surrender values and policy loans. 31. Which of the following statements concerning the NAIC model Holding Company Act is correct? (A) It contributes to the pressure on insurers to organize holding company systems in which the insurer is a subsidiary of the noninsurance parent company. (B) It requires that organizations seeking control of an insurer disclose relevant information and obtain the approval of the commissioner. (C) It establishes a 5 percent maximum dividend distribution to affiliated companies. (D) It permits the commissioner only to issue cease-and-desist orders to enforce the act. - (B) It requires that organizations seeking control of an insurer disclose relevant information and obtain the approval of the commissioner. 32. Which of the following statements concerning the fundamental factors associated with getting new business is correct? (A) A low agent-retention rate should result in greater productivity per agent. (B) Persistency refers to the number of calls an agent makes per sale. (C) A high agent-retention rate avoids company expenses associated with new agent recruitment. (D) Agent productivity refers to the amount of premium dollars an agent generates per $1,000 of policy face amount. - (C) A high agent-retention rate avoids company expenses associated with new agent recruitme