CISR LIFE HEALTH PRACTICE EXAM 1 QUESTIONS WITH 100 % CORRECT ANSWERS |VERIFIED

While reviewing several proposals for a quote for a life insurance policy for one of you clients, you also review the temporary insuring agreements. You notice that there are variations in the temporary insuring agreements between companies. Which of the following is NOT included in any of these agreements? - Answer-Receipt of premium Jennifer has a $5,000 loan against the cash value of her whole life policy. She receives her annual premium statement and it includes an additional charge of $250 for interest on the loan. Jennifer just pays the premium and not the additional interest. What happens to the interest charge? - Answer-It is added to the loan. If a policy is issued with a preferred rating, what will a new policy rating be if it is issued through a guarantee issue rider option? - Answer-Preferred (no medical underwriting) Which policy offering guarantees a benefit no matter your age at death? - Answer-Whole life insurance Frank is asking about a $1,000,000 ten-year term policy. He is concerned that after ten years he will have no coverage and wants to know if he has any options after the ten-year period is over. Name a policy provision that could give Frank options. - Answer-Guaranteed convertible provision Paul has a whole life policy that has been in force for 10 years. he stops paying the premium and the non-forfeiture provision begins. If Paul makes no election of benefits, which automatic non-forfeiture option will the insurance company use? - Answer-Extended term insurance Which one of the following is considered a qualifying event or claim trigger to allow a living benefit rider to pay a percentage of a life insurance policy death benefit to the insured? - Answer-Terminal illness Reasons why people buy life insurance can be related to the requirements of a loan. Which of the following reasons are NOT related to loan requirements? - Answer-Individual uses tobacco An insured and the beneficiary are killed in the same accident and there is no contingent beneficiary named. Under the terms of a survivorship clause, the proceeds would go to whom? - Answer-The estate of the insuredMary has a life insurance policy on her life for a face amount of $50,000. She has retired and her children are adults and her spouse is deceased. She doesn't see the need for the insurance but is very active in the Meals on Wheels program in her community and asks if she could leave the money to them. if she does leave the life insurance proceeds to Meals on Wheels, they would become a(n)... - AnswerBeneficiary Mark is applying for a life insurance policy and tells you he takes medication for high blood pressure. Which of the following third parties could be involved in the underwriting decision regarding this medical condition? - Answer-The Medical information Bureau