LIFE INSURANCE EXAM PRACTICE TEST QUESTIONS AND
ANSWERS GRADED A+ LATEST UPDATE.
A special characteristic of insurance contract where equal value
is not exchanged between parties is known as: ANS >> Aleatory
Life insurance contracts are ___ agreements ANS >> Unilateral
What is the proper definition of "take it or leave it" contracts
written by insurer? ANS >> Adhesion
using the human value approach, the best way to figure out the
amount of death benefit is based on?
A. proposed insured's life span
B. proposed insured's retirement date
,C. proposed insured's health status
D. proposed insured's potential earnings ANS >> D. proposed
insured's potential earnings
an insurer pays a refund from the surplus of profits to the holder
of a participating policy. what is this payment called?
A. unlawful rebate
B. dividend
C. annuity
D. not legal, as only stock companies pay dividends ANS >> B.
policy dividend
the non-forfeiture provision that would give the insured the
most amount of coverage would be?
A. cash surrender value
B. extended term insurance
C. reduced paid up insurance
D. automatic premium loan ANS >> B. extended term insurance
if you choose the settlement option of receiving fixed monthly
instalments or fixed amounts, you may receive an amount that
is:
, A. more than the face amount
B. less than the face amount
C. the same as the face amount
D. none of the above ANS >> A. more than the face amount.
an individual, who wishes to provide a retirement income for
himself that will also provide retirement income for his wife in
the event that he dies, should purchase which of the following?
A. life annuity with period certain
B. a refundable life annuity
C. joint and survivor life annuity
D. immediate annuity ANS >> C. joint and survivor life annuity
a pure life annuity offers protection against the risk of:
A. death during the earning years
B. disability during the earning years
C. outliving one's income
D. death after the age of retirement ANS >> C. outliving one's
income
ANSWERS GRADED A+ LATEST UPDATE.
A special characteristic of insurance contract where equal value
is not exchanged between parties is known as: ANS >> Aleatory
Life insurance contracts are ___ agreements ANS >> Unilateral
What is the proper definition of "take it or leave it" contracts
written by insurer? ANS >> Adhesion
using the human value approach, the best way to figure out the
amount of death benefit is based on?
A. proposed insured's life span
B. proposed insured's retirement date
,C. proposed insured's health status
D. proposed insured's potential earnings ANS >> D. proposed
insured's potential earnings
an insurer pays a refund from the surplus of profits to the holder
of a participating policy. what is this payment called?
A. unlawful rebate
B. dividend
C. annuity
D. not legal, as only stock companies pay dividends ANS >> B.
policy dividend
the non-forfeiture provision that would give the insured the
most amount of coverage would be?
A. cash surrender value
B. extended term insurance
C. reduced paid up insurance
D. automatic premium loan ANS >> B. extended term insurance
if you choose the settlement option of receiving fixed monthly
instalments or fixed amounts, you may receive an amount that
is:
, A. more than the face amount
B. less than the face amount
C. the same as the face amount
D. none of the above ANS >> A. more than the face amount.
an individual, who wishes to provide a retirement income for
himself that will also provide retirement income for his wife in
the event that he dies, should purchase which of the following?
A. life annuity with period certain
B. a refundable life annuity
C. joint and survivor life annuity
D. immediate annuity ANS >> C. joint and survivor life annuity
a pure life annuity offers protection against the risk of:
A. death during the earning years
B. disability during the earning years
C. outliving one's income
D. death after the age of retirement ANS >> C. outliving one's
income
