Life Insurance Practice Exam: Questions
& Answers
jason is the insured in a 100,000 10 year long renewable term policy. Soon
after taking out the policy, he develops a serious heart condition. will he be
able to renew his policy?
(Ans- yes
which policy has the lowest annual premium?
(Ans- whole life
the primary purpose of an annuity is to
(Ans- provide income for an individuals retirement
under what circumstance would an insurance applicant be asked to submit
a signed statement of continued good health?
(Ans- when the initial premium is not submitted with the application
when a firm establishes a contributory group term life insurance contract,
what percentage test must be met for the participation?
(Ans- 75%
a lapsed policy may usually be reinstated...
(Ans- within 3 years after the policy lapses
all of the following statements are true to the 10 day free look provision in a
life insurance policy
(Ans-
A. the 10 day free look period begins when the insured receives the
contract
B. an insured who returns the policy within the 10-day free look period will
receive a full refund of premiums paid
C. to get a refund, the policyholder must notify the insurer in writing
, amanda's life insurance policy names her sister Joyce as irrevocable
beneficiary of the policy proceeds. this means that
(Ans- amanda can borrow against the policy's cash value but only with
joyce permission.
The following statement concerning the Fair Credit Reporting Act is correct
(Ans- it requires the that the applicant for insurance coverage will be
informed if a consumer report is requested
The underwriting department of life insurance company acquires
information on an applicant for life insurance coverage from all of the
following sources...
(Ans-
A. an agents report
B. the life insurance application
C. the medical information bureau
to cover the contingency of a family breadwinner's death, all of the
following would be appropriate applications for a decreasing term insurance
policy..
(Ans-
A. to cover the families coverage
B. to cover families car insurance
C. to ensure the family's home improvement loan is covered
Pearl takes out a 100,000 permanent insurance policy on her life, naming
her daughter, jaunita, as the beneficiary. Five years after the policy was
issued, pearl dies an juanita submits a claim to the insurer for the death
benefit. upon reviewing the claim, the insurer discovers the Pearl Had
understated her age by 15 years on the original application. the insurer
will..
(Ans- calculate the face amount that the premiums paid would have been
purchased at the correct age, and pay that (reduced amount)
& Answers
jason is the insured in a 100,000 10 year long renewable term policy. Soon
after taking out the policy, he develops a serious heart condition. will he be
able to renew his policy?
(Ans- yes
which policy has the lowest annual premium?
(Ans- whole life
the primary purpose of an annuity is to
(Ans- provide income for an individuals retirement
under what circumstance would an insurance applicant be asked to submit
a signed statement of continued good health?
(Ans- when the initial premium is not submitted with the application
when a firm establishes a contributory group term life insurance contract,
what percentage test must be met for the participation?
(Ans- 75%
a lapsed policy may usually be reinstated...
(Ans- within 3 years after the policy lapses
all of the following statements are true to the 10 day free look provision in a
life insurance policy
(Ans-
A. the 10 day free look period begins when the insured receives the
contract
B. an insured who returns the policy within the 10-day free look period will
receive a full refund of premiums paid
C. to get a refund, the policyholder must notify the insurer in writing
, amanda's life insurance policy names her sister Joyce as irrevocable
beneficiary of the policy proceeds. this means that
(Ans- amanda can borrow against the policy's cash value but only with
joyce permission.
The following statement concerning the Fair Credit Reporting Act is correct
(Ans- it requires the that the applicant for insurance coverage will be
informed if a consumer report is requested
The underwriting department of life insurance company acquires
information on an applicant for life insurance coverage from all of the
following sources...
(Ans-
A. an agents report
B. the life insurance application
C. the medical information bureau
to cover the contingency of a family breadwinner's death, all of the
following would be appropriate applications for a decreasing term insurance
policy..
(Ans-
A. to cover the families coverage
B. to cover families car insurance
C. to ensure the family's home improvement loan is covered
Pearl takes out a 100,000 permanent insurance policy on her life, naming
her daughter, jaunita, as the beneficiary. Five years after the policy was
issued, pearl dies an juanita submits a claim to the insurer for the death
benefit. upon reviewing the claim, the insurer discovers the Pearl Had
understated her age by 15 years on the original application. the insurer
will..
(Ans- calculate the face amount that the premiums paid would have been
purchased at the correct age, and pay that (reduced amount)
