Life Study Guide
101: Best Study
A
VI
Guide For EXAMS
Prep With TU
IS
Questions and
M
O
Answers Already
A
N
solved and Passed!!
JP
Statements by an applicant concerning personal health history, family health history,
occupation, and hobbies are referred to as
,A. depictions
B. certifications
C. representations
D. personal characteristics - ANSWER representations
Mortality is based on a large risk pool of
A. income and time
B. people and time
C. geographic area and time
A
D. family history and hobbies - ANSWER people and time
VI
The purpose of the spendthrift clause in a life insurance policy is to
A. determine the order of death if the insured and beneficiary die in the same accident
B. prevent creditors of a beneficiary from claiming any future death benefits payable to
TU
the beneficiary
C. allow the insured to directly pay death benefit proceeds to a creditor
D. establish the payout of death benefits if the primary beneficiary dies before the
contingent beneficiary - ANSWER B. prevent creditors of a beneficiary from claiming
IS
any future death benefits payable to the beneficiary
Which of the following is a provision in an interest-sensitive life policy which allows the
policyowner to withdraw the policy's cash value interest-free?
M
A. partial surrender
B. automatic premium loan
O
C. waiver of premium
D. spendthrift clause - ANSWER A. partial surrender
A
Purchasing insurance is an example of which of the following methods of handling risk?
A. retention
N
B. avoidance
C. acceptance
JP
D. transference - ANSWER D. transference
The commissioner of insurance may suspend any insurance producer's license for all of
the following reasons except
A. soliciting insurance in adjoining states
B. violation of any insurance law of this state
C. obtaining the license through misrepresentation
D. materially misrepresenting the terms and conditions of any insurance contract -
ANSWER A. soliciting insurance in adjoining states
, The primary use of an annuity is to provide funds for
A. education
B. long-term care
C. retirement
D. burial - ANSWER C. retirement
The process by which an insurer decides to whom to issue a policy is known as
A. adverse selection
A
B. risk classification
C. assignment
VI
D. underwriting - ANSWER D. underwriting
Before receiving an insurance license, an applicant must
TU
A. swear an oath before a judge
B. provide a copy of their high-school diploma
C. post a $10,000 bond to guarantee faithful performance
D. pay a license application fee to the Louisiana Department of Insurance - ANSWER
IS
D. pay a license application fee to the Louisiana Department of Insurance
What is the purpose of a grace period in life insurance policies?
A. to guarantee the insured's right for a premium refund
M
B. to prevent unintentional policy lapse
C. to reinstate the policy after it has been surrendered
O
D. to allow the insurer to waive the premium - ANSWER B. to prevent unintentional
policy lapse
A
In order to transact the business of insurance for an insurer, a producer needs to be
able to carry out activities not stipulated in the agency contract. This type of authority is
N
referred to as
A. applied
JP
B. expressed
C. implied
D. fiduciary - ANSWER D. fiduciary
An insured has a 20-pay life policy with a paid-up dividend option. In this option, the
insured may
A. use policy dividends to reduce the premium after 20 years
B. pay up policy early by using policy dividends
C. pay up the policy early by using accumulated cash values
101: Best Study
A
VI
Guide For EXAMS
Prep With TU
IS
Questions and
M
O
Answers Already
A
N
solved and Passed!!
JP
Statements by an applicant concerning personal health history, family health history,
occupation, and hobbies are referred to as
,A. depictions
B. certifications
C. representations
D. personal characteristics - ANSWER representations
Mortality is based on a large risk pool of
A. income and time
B. people and time
C. geographic area and time
A
D. family history and hobbies - ANSWER people and time
VI
The purpose of the spendthrift clause in a life insurance policy is to
A. determine the order of death if the insured and beneficiary die in the same accident
B. prevent creditors of a beneficiary from claiming any future death benefits payable to
TU
the beneficiary
C. allow the insured to directly pay death benefit proceeds to a creditor
D. establish the payout of death benefits if the primary beneficiary dies before the
contingent beneficiary - ANSWER B. prevent creditors of a beneficiary from claiming
IS
any future death benefits payable to the beneficiary
Which of the following is a provision in an interest-sensitive life policy which allows the
policyowner to withdraw the policy's cash value interest-free?
M
A. partial surrender
B. automatic premium loan
O
C. waiver of premium
D. spendthrift clause - ANSWER A. partial surrender
A
Purchasing insurance is an example of which of the following methods of handling risk?
A. retention
N
B. avoidance
C. acceptance
JP
D. transference - ANSWER D. transference
The commissioner of insurance may suspend any insurance producer's license for all of
the following reasons except
A. soliciting insurance in adjoining states
B. violation of any insurance law of this state
C. obtaining the license through misrepresentation
D. materially misrepresenting the terms and conditions of any insurance contract -
ANSWER A. soliciting insurance in adjoining states
, The primary use of an annuity is to provide funds for
A. education
B. long-term care
C. retirement
D. burial - ANSWER C. retirement
The process by which an insurer decides to whom to issue a policy is known as
A. adverse selection
A
B. risk classification
C. assignment
VI
D. underwriting - ANSWER D. underwriting
Before receiving an insurance license, an applicant must
TU
A. swear an oath before a judge
B. provide a copy of their high-school diploma
C. post a $10,000 bond to guarantee faithful performance
D. pay a license application fee to the Louisiana Department of Insurance - ANSWER
IS
D. pay a license application fee to the Louisiana Department of Insurance
What is the purpose of a grace period in life insurance policies?
A. to guarantee the insured's right for a premium refund
M
B. to prevent unintentional policy lapse
C. to reinstate the policy after it has been surrendered
O
D. to allow the insurer to waive the premium - ANSWER B. to prevent unintentional
policy lapse
A
In order to transact the business of insurance for an insurer, a producer needs to be
able to carry out activities not stipulated in the agency contract. This type of authority is
N
referred to as
A. applied
JP
B. expressed
C. implied
D. fiduciary - ANSWER D. fiduciary
An insured has a 20-pay life policy with a paid-up dividend option. In this option, the
insured may
A. use policy dividends to reduce the premium after 20 years
B. pay up policy early by using policy dividends
C. pay up the policy early by using accumulated cash values
