Insurance Exam Practice Exam: Questions and Answers
Graded A+
1.Pure or straight life: Which of the following annuity benefit payment
options would generate the highest monthly payments to the contract
owner upon annuiti- zation?
2.Paid-up
additions 1-year
term
Cash: All of the following are dividend options on a participating li
insurance policy:
3.Insured: The person upon whose life an annuity is based is known a
the:
4.Reduced paid-up: When a policyowner uses the cash value in their
policy to buy a lesser amount of permanent life insurance, they have
exercised which nonforfeiture option:
5.Interest only: Which of the following life insurance settlement options
enables the beneficiary to conserve the proceeds of a life insurance
policy?
6.The account value: In the case of a variable annuity sold to a senior
citizen in this state for which the owner has directed that the premium
be invested in the mutual funds underlying the contract during the 30-
day cancellation period, cancellation during that period entitles the
owner to a refund of:
7.They are purchased by those who are worried about outliving their savings
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, They are not suitable as short term investments.
They may be used as a life insurance settlement option.: All of the following
are true regarding annuities
8.Group (Life Insruance): Which of the following would not be
considered to be ordinary life insurance?
9.They are not guaranteed
They are legally defined as a return of premium and are not taxable
They are paid out of the insurer's accumulated surplus: All of the following
are true regarding dividends paid by a mutual life insurance company
10.Renewable: Which type of term life insurance has a level face
amount but a premium that increases each year as the insured gets
older?
11.The amount and frequency of future losses are unknown: The transfer
of risk to an insurance company is an effective risk management
technique when:
12.Change the beneficiary
Assign or transfer ownership in the policy
Take a loan: The owner of a life insurance policy may do all of the
following
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Graded A+
1.Pure or straight life: Which of the following annuity benefit payment
options would generate the highest monthly payments to the contract
owner upon annuiti- zation?
2.Paid-up
additions 1-year
term
Cash: All of the following are dividend options on a participating li
insurance policy:
3.Insured: The person upon whose life an annuity is based is known a
the:
4.Reduced paid-up: When a policyowner uses the cash value in their
policy to buy a lesser amount of permanent life insurance, they have
exercised which nonforfeiture option:
5.Interest only: Which of the following life insurance settlement options
enables the beneficiary to conserve the proceeds of a life insurance
policy?
6.The account value: In the case of a variable annuity sold to a senior
citizen in this state for which the owner has directed that the premium
be invested in the mutual funds underlying the contract during the 30-
day cancellation period, cancellation during that period entitles the
owner to a refund of:
7.They are purchased by those who are worried about outliving their savings
1/
7
, They are not suitable as short term investments.
They may be used as a life insurance settlement option.: All of the following
are true regarding annuities
8.Group (Life Insruance): Which of the following would not be
considered to be ordinary life insurance?
9.They are not guaranteed
They are legally defined as a return of premium and are not taxable
They are paid out of the insurer's accumulated surplus: All of the following
are true regarding dividends paid by a mutual life insurance company
10.Renewable: Which type of term life insurance has a level face
amount but a premium that increases each year as the insured gets
older?
11.The amount and frequency of future losses are unknown: The transfer
of risk to an insurance company is an effective risk management
technique when:
12.Change the beneficiary
Assign or transfer ownership in the policy
Take a loan: The owner of a life insurance policy may do all of the
following
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