LIFE EXAM PROMETRIC | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+

All of the following statements about the provisions in a typical modification clause in a life insurance policy are true EXCEPT: Correct Answer: The authority to bind the insurance company to policy changes or modifications is limited to specified persons. The lowest total annual premium expenditure usually results when premiums are paid: Correct Answer: Annually A preferred risk classification for a whole life insurance policy means that: Correct Answer: The premium rate is lower than the standard rate for the identical policy The gross annual premium for a whole life insurance policy is the net premium: Correct Answer: Plus Expenses 2 Which one of the following statements about a life insurance policy rider regarding waiver of premiums and disability income is true? Correct Answer: In addition to waiving premiums during periods of disability, it provides a monthly income. A withdrawal from a deferred annuity must be authorized by Correct Answer: The Owner The beneficiary of a life insurance policy originally is indicated: Correct Answer: On the life insurance application Life insurance helps meet estate planning objectives because it is: Correct Answer: A liquid asset at death Current interest rates provide a reasonable basis for projecting cash values in a fixed annuity when: Correct Answer: The current interest rate is close to historical standards Which provision can provide for the payment of life insurance benefits to the insured while living? Correct Answer: An accelerated benefit provision Which one of the following statements about the application for life insurance is true? 3 Correct Answer: It becomes a permanent part of the insurance contract. A misleading life insurance policy illustration may result from any of the followi