1 Exampromax - Stuvia US
214 License Questions and Answers 100%
Correct Answers Already Graded A+
Q: Which of the following describes a participating insurance policy?
Ans: Policyowners are entitled to receive dividends
Q: At what point must a life insurance applicant be informed of their rights
that fall under the Fair Credit Reporting Act?
Ans: Upon completion of the application
Exampromax - Stuvia US
Q: Dividends payable to a policyowner are:
Ans: Declared by the insurance company.
Q: At what point does an informal agreement become a binding contract?
Ans: When consideration is provided by one of the parties to the contract
Q: When third-party ownership is involved, applicants who also happen to
be the stated primary beneficiary are required to have
Ans: Insurable interest in the proposed insured
Q: Which of the following arrangements allows one to bypass insurable
interest laws?
Ans: (STOLI) or Investor Originated Life Insurance
Q: Taking receipt of premiums and holding them for the insurance
company is an example of
Ans: Fiduciary Responsibility
Q: A policy of adhesion can only be modified by whom?
, 2 Exampromax - Stuvia US
Ans: The Insurance Company
Q: The exchange of unequal values reflects:
Ans: Aleatory
Q: Life and health insurance policies are
Ans: Unilateral Contracts (one makes promise, other can only accept by
performance
Q: The consideration clause of insurance contract includes
Ans: The schedule and amount of premium payments
Q: A life insurance arrangement which circumvents insurable interest
Exampromax - Stuvia US
values is called
Ans: Investor Originated Life Insurance (IOLI)
Q: Who makes the legally enforceable promises in a unilateral contract?
Ans: The Insurance Company
Q: A life insurance policy would be considered a wagering contract
WITHOUT:
Ans: Insurable Interest
Q: A life insurance policy that provides a policyowner with cash value
along with a level face amount is called:
Ans: Whole Life Policy
Q: Who benefits in Investor-Originated Life Insurance (IOLI) when the
insured dies?
Ans: the Policyowner(investor)
Q: K purchased a Life insurance policy in 1986 which paid 10% interest in
the early years of the policy. Twenty years after the purchase, she received a
, 3 Exampromax - Stuvia US
notice from the insurer stating that the policy will soon terminate unless a
much-higher premium is paid because of falling interest rates. This type of
policy is known as:
Ans: Universal Life Policy
Q: Which of these would be considered a Limited-Pay-Life policy?
Ans: Life Paid Up at Age 70
Q: K is looking to purchase Renewable Term insurance. Which of these
types of Term insurance may be renewable?
Ans: Level Term Policy (pays same death benefit if insured dies any time during
policy)
Exampromax - Stuvia US
Q: A universal life policy is sometimes referred to as an unbundled Life
Policy because the owner can see the interest earned, cost of insurance, and
Ans: Expense Charges
Q: What type of insurance offers permanent life coverage with premiums
that are payable for life?
Ans: Whole Life Policy
Q: Which provision allows the policyowner to change a term life policy to
a permanent one without providing proof of good health?
Ans: Conversion
Q: When is the face amount of a Whole Life policy paid?
Ans: When the insured dies, or the policy's maturity, whichever comes first!
Q: Additional coverage can be added to a Whole Life policy by adding a(n)
Ans: Decreasing Term Rider
Q: When a life policy exceeds certain IRS table values, the result would
create which of the following?
214 License Questions and Answers 100%
Correct Answers Already Graded A+
Q: Which of the following describes a participating insurance policy?
Ans: Policyowners are entitled to receive dividends
Q: At what point must a life insurance applicant be informed of their rights
that fall under the Fair Credit Reporting Act?
Ans: Upon completion of the application
Exampromax - Stuvia US
Q: Dividends payable to a policyowner are:
Ans: Declared by the insurance company.
Q: At what point does an informal agreement become a binding contract?
Ans: When consideration is provided by one of the parties to the contract
Q: When third-party ownership is involved, applicants who also happen to
be the stated primary beneficiary are required to have
Ans: Insurable interest in the proposed insured
Q: Which of the following arrangements allows one to bypass insurable
interest laws?
Ans: (STOLI) or Investor Originated Life Insurance
Q: Taking receipt of premiums and holding them for the insurance
company is an example of
Ans: Fiduciary Responsibility
Q: A policy of adhesion can only be modified by whom?
, 2 Exampromax - Stuvia US
Ans: The Insurance Company
Q: The exchange of unequal values reflects:
Ans: Aleatory
Q: Life and health insurance policies are
Ans: Unilateral Contracts (one makes promise, other can only accept by
performance
Q: The consideration clause of insurance contract includes
Ans: The schedule and amount of premium payments
Q: A life insurance arrangement which circumvents insurable interest
Exampromax - Stuvia US
values is called
Ans: Investor Originated Life Insurance (IOLI)
Q: Who makes the legally enforceable promises in a unilateral contract?
Ans: The Insurance Company
Q: A life insurance policy would be considered a wagering contract
WITHOUT:
Ans: Insurable Interest
Q: A life insurance policy that provides a policyowner with cash value
along with a level face amount is called:
Ans: Whole Life Policy
Q: Who benefits in Investor-Originated Life Insurance (IOLI) when the
insured dies?
Ans: the Policyowner(investor)
Q: K purchased a Life insurance policy in 1986 which paid 10% interest in
the early years of the policy. Twenty years after the purchase, she received a
, 3 Exampromax - Stuvia US
notice from the insurer stating that the policy will soon terminate unless a
much-higher premium is paid because of falling interest rates. This type of
policy is known as:
Ans: Universal Life Policy
Q: Which of these would be considered a Limited-Pay-Life policy?
Ans: Life Paid Up at Age 70
Q: K is looking to purchase Renewable Term insurance. Which of these
types of Term insurance may be renewable?
Ans: Level Term Policy (pays same death benefit if insured dies any time during
policy)
Exampromax - Stuvia US
Q: A universal life policy is sometimes referred to as an unbundled Life
Policy because the owner can see the interest earned, cost of insurance, and
Ans: Expense Charges
Q: What type of insurance offers permanent life coverage with premiums
that are payable for life?
Ans: Whole Life Policy
Q: Which provision allows the policyowner to change a term life policy to
a permanent one without providing proof of good health?
Ans: Conversion
Q: When is the face amount of a Whole Life policy paid?
Ans: When the insured dies, or the policy's maturity, whichever comes first!
Q: Additional coverage can be added to a Whole Life policy by adding a(n)
Ans: Decreasing Term Rider
Q: When a life policy exceeds certain IRS table values, the result would
create which of the following?
