CH#2: Life Insurance Basics Q&A EXAM
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Terms in this set (57)
,What is the purpose of a It is intended to provide coverage on a date earlier
conditional receipt than the date of the issuance of the policy
A) It is intended to
provide coverage on a
date earlier than the date
of the issuance of the
policy
B) It guarantees the
applicant that a policy will
be issued in the amount
applied for in the
application
C) It serves as proof that
the agent has determined
the applicant to be fully
insurable for coverage by
the insurance company
D) It is given by the agent
only to applicants who
fully prepay all scheduled
premiums in advance of
policy issue
,What does "liquidity" refer Cash values can be borrowed at any time
to in a life insurance policy
A) The policyowner
receives dividend checks
each year
B) The insured is receiving
payments each month is
retirement
C) Cash values can be
borrowed at any time
D) The death benefit
replaces the assets that
would have accumulated
if the insured not died
Which of the following Insurers are barred from requesting HIV testing
statements regarding HIV
testing for life insurance
purposes is NOT true
A) The testing practices
must meet the criteria of
the U.S. Department of
Health and Human
Services
B) HIV testing is regulated
at the state level
C) Insurers are barred
from requesting HIV
testing
D) Positive test results will
be forwarded to the state's
Department of Health if a
physician is not selected
by the applicant
, Which of the following An applicant who is a smoker
applicants could the
insurer charge a higher
rate of premium and not
violate regulations
regarding unfair
discrimination
A) An applicant who is a
smoker
B) An applicant who was
born in another country
C) An applicant who is
legally blind
D) An applicant who has
been a victim of domestic
abuse
Which of the following Whole life
types of insurance policies
would perform the
function of cash
accumulation
A) Credit life
B) Increasing term
C) Whole life
D) Term life
Questions & Answers | 100% Verified solutions
|Questions with Correct Answers 2025 latest
update!!
Save
Terms in this set (57)
,What is the purpose of a It is intended to provide coverage on a date earlier
conditional receipt than the date of the issuance of the policy
A) It is intended to
provide coverage on a
date earlier than the date
of the issuance of the
policy
B) It guarantees the
applicant that a policy will
be issued in the amount
applied for in the
application
C) It serves as proof that
the agent has determined
the applicant to be fully
insurable for coverage by
the insurance company
D) It is given by the agent
only to applicants who
fully prepay all scheduled
premiums in advance of
policy issue
,What does "liquidity" refer Cash values can be borrowed at any time
to in a life insurance policy
A) The policyowner
receives dividend checks
each year
B) The insured is receiving
payments each month is
retirement
C) Cash values can be
borrowed at any time
D) The death benefit
replaces the assets that
would have accumulated
if the insured not died
Which of the following Insurers are barred from requesting HIV testing
statements regarding HIV
testing for life insurance
purposes is NOT true
A) The testing practices
must meet the criteria of
the U.S. Department of
Health and Human
Services
B) HIV testing is regulated
at the state level
C) Insurers are barred
from requesting HIV
testing
D) Positive test results will
be forwarded to the state's
Department of Health if a
physician is not selected
by the applicant
, Which of the following An applicant who is a smoker
applicants could the
insurer charge a higher
rate of premium and not
violate regulations
regarding unfair
discrimination
A) An applicant who is a
smoker
B) An applicant who was
born in another country
C) An applicant who is
legally blind
D) An applicant who has
been a victim of domestic
abuse
Which of the following Whole life
types of insurance policies
would perform the
function of cash
accumulation
A) Credit life
B) Increasing term
C) Whole life
D) Term life
