Insurance Exam Practice Exam
Questions and Answers Rated 100%
Correct
Pure or straight life - correct answer ✔✔Which of the following annuity benefit payment
options would generate the highest monthly payments to the contract owner upon
annuitization?
Paid-up additions
1-year term
Cash - correct answer ✔✔All of the following are dividend options on a participating life
insurance policy:
Insured - correct answer ✔✔The person upon whose life an annuity is based is known as the:
Reduced paid-up - correct answer ✔✔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:
Interest only - correct answer ✔✔Which of the following life insurance settlement options
enables the beneficiary to conserve the proceeds of a life insurance policy?
The account value - correct answer ✔✔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:
They are purchased by those who are worried about outliving their savings.
, They are not suitable as short term investments.
They may be used as a life insurance settlement option. - correct answer ✔✔All of the following
are true regarding annuities
Group (Life Insruance) - correct answer ✔✔Which of the following would not be considered to
be ordinary life insurance?
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 - correct answer ✔✔All of the following
are true regarding dividends paid by a mutual life insurance company
Renewable - correct answer ✔✔Which type of term life insurance has a level face amount but a
premium that increases each year as the insured gets older?
The amount and frequency of future losses are unknown - correct answer ✔✔The transfer of
risk to an insurance company is an effective risk management technique when:
Change the beneficiary
Assign or transfer ownership in the policy
Take a loan - correct answer ✔✔The owner of a life insurance policy may do all of the following
Questions and Answers Rated 100%
Correct
Pure or straight life - correct answer ✔✔Which of the following annuity benefit payment
options would generate the highest monthly payments to the contract owner upon
annuitization?
Paid-up additions
1-year term
Cash - correct answer ✔✔All of the following are dividend options on a participating life
insurance policy:
Insured - correct answer ✔✔The person upon whose life an annuity is based is known as the:
Reduced paid-up - correct answer ✔✔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:
Interest only - correct answer ✔✔Which of the following life insurance settlement options
enables the beneficiary to conserve the proceeds of a life insurance policy?
The account value - correct answer ✔✔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:
They are purchased by those who are worried about outliving their savings.
, They are not suitable as short term investments.
They may be used as a life insurance settlement option. - correct answer ✔✔All of the following
are true regarding annuities
Group (Life Insruance) - correct answer ✔✔Which of the following would not be considered to
be ordinary life insurance?
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 - correct answer ✔✔All of the following
are true regarding dividends paid by a mutual life insurance company
Renewable - correct answer ✔✔Which type of term life insurance has a level face amount but a
premium that increases each year as the insured gets older?
The amount and frequency of future losses are unknown - correct answer ✔✔The transfer of
risk to an insurance company is an effective risk management technique when:
Change the beneficiary
Assign or transfer ownership in the policy
Take a loan - correct answer ✔✔The owner of a life insurance policy may do all of the following
