LIFE INSURANCE PRACTICE EXAM/ Qs & Ans/
A+ Score Solution.
Insurable Receipt - Answer: The receipt given to a life insurance applicant when
the application is completed and the initial premium is received is called a(n)
Representations - Answer: Statements in the application for insurance that are
believed to be true to the best of the applicant’s knowledge are
Provide the annuitant with an interest rate that is lesser of the guaranteed or
current rate - Answer: An annuity is considered fixed when it does all of the
following EXCEPT
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, Continuous Premium (straight) life - Answer: The most common type of whole life
insurance where premiums are payable over the whole life of the insured to age
100 is called.
Assignment - Answer: The legal transfer of all or part of a policyowners rights, title
or interest is called an (a)
Certificate of Insurance - Answer: What do employees covered under a group
contract receive?
Equity Indexed Annuity - Answer: An annuity in which investment growth is
dependent on the performance of an index such as the Standard and Poor's 500 is
called a(n)
Payment method of the policy premium - Answer: The premium payment mode
can be best described as the
20-pay life - Answer: All other factors being equal, which of the following types of
policies will accumulate cash value at the fastest rate.
Entire contract - Answer: The policy and a copy of the application, along with any
riders and amendments, is called the
Not taxable - Answer: Money borrowed from the policy's cash value is
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A+ Score Solution.
Insurable Receipt - Answer: The receipt given to a life insurance applicant when
the application is completed and the initial premium is received is called a(n)
Representations - Answer: Statements in the application for insurance that are
believed to be true to the best of the applicant’s knowledge are
Provide the annuitant with an interest rate that is lesser of the guaranteed or
current rate - Answer: An annuity is considered fixed when it does all of the
following EXCEPT
Page 1 of 8
, Continuous Premium (straight) life - Answer: The most common type of whole life
insurance where premiums are payable over the whole life of the insured to age
100 is called.
Assignment - Answer: The legal transfer of all or part of a policyowners rights, title
or interest is called an (a)
Certificate of Insurance - Answer: What do employees covered under a group
contract receive?
Equity Indexed Annuity - Answer: An annuity in which investment growth is
dependent on the performance of an index such as the Standard and Poor's 500 is
called a(n)
Payment method of the policy premium - Answer: The premium payment mode
can be best described as the
20-pay life - Answer: All other factors being equal, which of the following types of
policies will accumulate cash value at the fastest rate.
Entire contract - Answer: The policy and a copy of the application, along with any
riders and amendments, is called the
Not taxable - Answer: Money borrowed from the policy's cash value is
Page 2 of 8
