ExamFX Life Insurance Final Exam
questions with accurate answers. 100%
Verified.
A buyer's guide - Correct Answer - The entire contract includes all of the following EXCEPT...
The death benefit is not increased - Correct Answer - All of the following statements about indexed
whole life insurance EXCEPT...
A Warranty - Correct Answer - What guarantees that the information explained in the insurance
contract is true?
(1) the policy, (2) a copy of the application, and (3) any riders or amendments. - Correct Answer - The
entire contract includes:
guaranteed - Correct Answer - Under an indexed whole life policy, the premium is fixed, but the death
benefit is...
Warranties - Correct Answer - ... are considered statements of fact or something guaranteed to be true.
voiding - Correct Answer - A breach of warranty can be considered grounds for ________________ the
policy.
Whole life - Correct Answer - A graded premium life insurance policy is a modified form of...
Graded Premium - Correct Answer - ... a whole life policy with premiums that increase annually over the
first 5 to 10 years.
Grace period - Correct Answer - An insured bought an insurance policy that requires him to pay $150 in
premiums on the 15th of each month. He then takes an extended vacation and forgets to pay the
premium. Ten days later, his policy is still in effect and has not lapsed. What policy provision allowed for
this?
premium - Correct Answer - Grace period is a mandatory provision found in all life insurance policies
that provides coverage for a period of time after the _____________________ becomes past due.
The Annuitant - Correct Answer - Which of the following indicates the person upon whose life the
annuity income amount is determined?
, annuity income - Correct Answer - The annuitant is the person whose life the ______________
__________________ amount is determined.
The premium is based on the age of each insured - Correct Answer - True of Survivorship Life policy
The face amount is paid to the insured. - Correct Answer - What happens to the face amount of a whole
life policy if the insured reaches the age of 100?
A policy is reissued with a reduction in cash value - Correct Answer - According to the life insurance
replace meant regulations, which of the following would be an example of policy replacement?
The Commissioner may hold hearings immediately after determining that a violation has occurred. -
Correct Answer - true regarding the insurance commissioner's powers related to hearings and
investigations
Applicants who may require a larger death benefit in the future should buy convertible term insurance -
Correct Answer - Incorrect regarding the type of term insurance that fits best with the applicant's needs
joint life - Correct Answer - What is the most common name for a single policy that is designed to insure
two or more lives with a standard premium, and that pays the death benefit upon the first death?
An accidental death rider - Correct Answer - Which of the following riders pays a beneficiary a death
benefit that is double or triple the face amount if the insured's death was caused by an accident as
defined in the policy?
The death benefit is taxable to the business - Correct Answer - not true about key-person insurance
One party accepts the exact terms of the other party's offer - Correct Answer - Which statement best
describes agreement as it relates to insurance contracts?
Living longer than expected - Correct Answer - What does an annuity protect the contract owner
against?
10 business days - Correct Answer - An insurance agent changes his address. How long will the agent be
given to notify the Department of Insurance?
Continue to increase - Correct Answer - A whole life policy is surrendered for a reduced-paid up policy.
The cash value in the new policy will
60 days - Correct Answer - A distribution fro an employer-sponsored retirement plan or from an IRA is
eligible for a tax-free rollover if it is reinvested in an IRA within
The premium can be raised up to a guaranteed maximum rate - Correct Answer - Which of the following
is TRUE regarding an indeterminate premium whole life policy?
It is the period which the payments into the annuity grow tax deferred. - Correct Answer - Which of the
following is TRUE regarding the accumulation period of an annuity?
questions with accurate answers. 100%
Verified.
A buyer's guide - Correct Answer - The entire contract includes all of the following EXCEPT...
The death benefit is not increased - Correct Answer - All of the following statements about indexed
whole life insurance EXCEPT...
A Warranty - Correct Answer - What guarantees that the information explained in the insurance
contract is true?
(1) the policy, (2) a copy of the application, and (3) any riders or amendments. - Correct Answer - The
entire contract includes:
guaranteed - Correct Answer - Under an indexed whole life policy, the premium is fixed, but the death
benefit is...
Warranties - Correct Answer - ... are considered statements of fact or something guaranteed to be true.
voiding - Correct Answer - A breach of warranty can be considered grounds for ________________ the
policy.
Whole life - Correct Answer - A graded premium life insurance policy is a modified form of...
Graded Premium - Correct Answer - ... a whole life policy with premiums that increase annually over the
first 5 to 10 years.
Grace period - Correct Answer - An insured bought an insurance policy that requires him to pay $150 in
premiums on the 15th of each month. He then takes an extended vacation and forgets to pay the
premium. Ten days later, his policy is still in effect and has not lapsed. What policy provision allowed for
this?
premium - Correct Answer - Grace period is a mandatory provision found in all life insurance policies
that provides coverage for a period of time after the _____________________ becomes past due.
The Annuitant - Correct Answer - Which of the following indicates the person upon whose life the
annuity income amount is determined?
, annuity income - Correct Answer - The annuitant is the person whose life the ______________
__________________ amount is determined.
The premium is based on the age of each insured - Correct Answer - True of Survivorship Life policy
The face amount is paid to the insured. - Correct Answer - What happens to the face amount of a whole
life policy if the insured reaches the age of 100?
A policy is reissued with a reduction in cash value - Correct Answer - According to the life insurance
replace meant regulations, which of the following would be an example of policy replacement?
The Commissioner may hold hearings immediately after determining that a violation has occurred. -
Correct Answer - true regarding the insurance commissioner's powers related to hearings and
investigations
Applicants who may require a larger death benefit in the future should buy convertible term insurance -
Correct Answer - Incorrect regarding the type of term insurance that fits best with the applicant's needs
joint life - Correct Answer - What is the most common name for a single policy that is designed to insure
two or more lives with a standard premium, and that pays the death benefit upon the first death?
An accidental death rider - Correct Answer - Which of the following riders pays a beneficiary a death
benefit that is double or triple the face amount if the insured's death was caused by an accident as
defined in the policy?
The death benefit is taxable to the business - Correct Answer - not true about key-person insurance
One party accepts the exact terms of the other party's offer - Correct Answer - Which statement best
describes agreement as it relates to insurance contracts?
Living longer than expected - Correct Answer - What does an annuity protect the contract owner
against?
10 business days - Correct Answer - An insurance agent changes his address. How long will the agent be
given to notify the Department of Insurance?
Continue to increase - Correct Answer - A whole life policy is surrendered for a reduced-paid up policy.
The cash value in the new policy will
60 days - Correct Answer - A distribution fro an employer-sponsored retirement plan or from an IRA is
eligible for a tax-free rollover if it is reinvested in an IRA within
The premium can be raised up to a guaranteed maximum rate - Correct Answer - Which of the following
is TRUE regarding an indeterminate premium whole life policy?
It is the period which the payments into the annuity grow tax deferred. - Correct Answer - Which of the
following is TRUE regarding the accumulation period of an annuity?
