USAA Test Questions And Answers Verified 100%
Correct
When is the face amount of a Whole Life policy paid? - ANSWER When
the insured dies or at the policy's maturity date, whichever happens first
An insured is past due on his life insurance premium, but is still within the
Grace Period. What will the beneficiary receive if the insured dies during
this Grace Period? - ANSWER Full face amount minus any past due
premiums
T took out a $50,000 life insurance policy with an Accidental Death and
Dismemberment rider. Five years later, T commits suicide. How much will
the insurer pay? - ANSWER 50,000
Which type of life policy contains a monthly mortality charge as well as
self-directed investment choices? - ANSWER Variable Universal Life
What benefit does the Payor clause on a Juvenile Life policy provide? -
ANSWER Premiums are waived if payor becomes disabled
Which of these are NOT an example of Nonforfeiture option? - ANSWER
Life Income
Whose life is covered on a life insurance policy that contains a payor
benefit clause? - ANSWER child
M had an annual life insurance premium payment due January 1. She died
January 10 without making the premium payment. What action will the
insurer take? - ANSWER Pay face amount minus the past due premium
The provision that can be used to put an insurance policy back in force
after it has lapsed due to nonpayment is called: - ANSWER Reinstatement
A Return of Premium life insurance policy is: - ANSWER Whole life and
Increasing term
, A policy loan is made possible by which of these life insurance policy
features? - ANSWER Cash value provision
Which of these types of life insurance allows the policyowner to have level
premiums and to also choose from a selection of investment options? -
ANSWER Variable Life
What does the insuring agreement in a Life insurance contract establish? -
ANSWER An insurer's basic promise
Which life insurance rider typically appears on a Juvenile life insurance
policy? - ANSWER payor benefit rider
Which of the following statements is CORRECT about accelerated death
benefits? - ANSWER Must have a terminal illness to qualify
Which of these types of policies may NOT have the Automatic Premium
Loan provision attached to it? - ANSWER Decreasing term
Which of these provisions require proof of insurability after a policy has
lapsed? - ANSWER Reinstatement
P is the insured on a participating life policy. Which statement is true if P's
premiums are waived due to a disability? - ANSWER P will still receive
declared dividends
N is a student pilot with a large life insurance policy. Which of these
features would limit the insurer's obligation in the event N was killed while
flying as a student pilot? - ANSWER exclusion
A primary beneficiary has died before the insured in a life insurance policy.
A contingent beneficiary is also named in the policy. Which of the following
will occur when the inured dies? - ANSWER Proceeds will go to the
contingent beneficiary
Which settlement option pays a stated amount to an annuitant, but no
, residual value to a beneficiary? - ANSWER Life Income
A policyowner is able to choose the frequency of premium payments
through what policy feature? - ANSWER Premium Mode
How would a contingent beneficiary receive the policy proceeds in an
Accidental Death and Dismemberment (AD&D) policy? - ANSWER If the
primary beneficiary dies before the insured
If the insured and primary beneficiary are both killed in the same accident
and it cannot be determined who died first, where are the death proceeds
to be directed under the Uniform Simultaneous Death Act? - ANSWER
Insured's contingent beneficiary
Which statement is INCORRECT regarding the federal income tax
treatment of life insurance? - ANSWER Entire cash surrender value is
taxable
Which premium schedule results in the lowest cost to the policyowner? -
ANSWER annual
On a life insurance policy, who is qualified to change the beneficiary
designation? - ANSWER Policyowner
J chooses a monthly premium payment mode on his Whole Life insurance
policy. Which of these statements is correct? - ANSWER The gross
premium is higher on a monthly payment mode as compared to being paid
annually
A policyowner's rights are limited under which beneficiary designation? -
ANSWER irrevocable
P and Q are married and have three children. P is the primary beneficiary
on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister
R is the contingent beneficiary. P, Q, and R are involved in a car accident
Correct
When is the face amount of a Whole Life policy paid? - ANSWER When
the insured dies or at the policy's maturity date, whichever happens first
An insured is past due on his life insurance premium, but is still within the
Grace Period. What will the beneficiary receive if the insured dies during
this Grace Period? - ANSWER Full face amount minus any past due
premiums
T took out a $50,000 life insurance policy with an Accidental Death and
Dismemberment rider. Five years later, T commits suicide. How much will
the insurer pay? - ANSWER 50,000
Which type of life policy contains a monthly mortality charge as well as
self-directed investment choices? - ANSWER Variable Universal Life
What benefit does the Payor clause on a Juvenile Life policy provide? -
ANSWER Premiums are waived if payor becomes disabled
Which of these are NOT an example of Nonforfeiture option? - ANSWER
Life Income
Whose life is covered on a life insurance policy that contains a payor
benefit clause? - ANSWER child
M had an annual life insurance premium payment due January 1. She died
January 10 without making the premium payment. What action will the
insurer take? - ANSWER Pay face amount minus the past due premium
The provision that can be used to put an insurance policy back in force
after it has lapsed due to nonpayment is called: - ANSWER Reinstatement
A Return of Premium life insurance policy is: - ANSWER Whole life and
Increasing term
, A policy loan is made possible by which of these life insurance policy
features? - ANSWER Cash value provision
Which of these types of life insurance allows the policyowner to have level
premiums and to also choose from a selection of investment options? -
ANSWER Variable Life
What does the insuring agreement in a Life insurance contract establish? -
ANSWER An insurer's basic promise
Which life insurance rider typically appears on a Juvenile life insurance
policy? - ANSWER payor benefit rider
Which of the following statements is CORRECT about accelerated death
benefits? - ANSWER Must have a terminal illness to qualify
Which of these types of policies may NOT have the Automatic Premium
Loan provision attached to it? - ANSWER Decreasing term
Which of these provisions require proof of insurability after a policy has
lapsed? - ANSWER Reinstatement
P is the insured on a participating life policy. Which statement is true if P's
premiums are waived due to a disability? - ANSWER P will still receive
declared dividends
N is a student pilot with a large life insurance policy. Which of these
features would limit the insurer's obligation in the event N was killed while
flying as a student pilot? - ANSWER exclusion
A primary beneficiary has died before the insured in a life insurance policy.
A contingent beneficiary is also named in the policy. Which of the following
will occur when the inured dies? - ANSWER Proceeds will go to the
contingent beneficiary
Which settlement option pays a stated amount to an annuitant, but no
, residual value to a beneficiary? - ANSWER Life Income
A policyowner is able to choose the frequency of premium payments
through what policy feature? - ANSWER Premium Mode
How would a contingent beneficiary receive the policy proceeds in an
Accidental Death and Dismemberment (AD&D) policy? - ANSWER If the
primary beneficiary dies before the insured
If the insured and primary beneficiary are both killed in the same accident
and it cannot be determined who died first, where are the death proceeds
to be directed under the Uniform Simultaneous Death Act? - ANSWER
Insured's contingent beneficiary
Which statement is INCORRECT regarding the federal income tax
treatment of life insurance? - ANSWER Entire cash surrender value is
taxable
Which premium schedule results in the lowest cost to the policyowner? -
ANSWER annual
On a life insurance policy, who is qualified to change the beneficiary
designation? - ANSWER Policyowner
J chooses a monthly premium payment mode on his Whole Life insurance
policy. Which of these statements is correct? - ANSWER The gross
premium is higher on a monthly payment mode as compared to being paid
annually
A policyowner's rights are limited under which beneficiary designation? -
ANSWER irrevocable
P and Q are married and have three children. P is the primary beneficiary
on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister
R is the contingent beneficiary. P, Q, and R are involved in a car accident
