Insurance Exam Practice Questions and Answers Latest 2024

Insurance Exam Practice Questions and Answers Latest 2024 Which of the following annuity benefit payment options would generate the highest monthly payments to the contract owner upon annuitization? - Pure or straight life All of the following are dividend options on a participating life insurance policy: - Paid-up additions 1-year term Cash The person upon whose life an annuity is based is known as the: - Insured 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: - Reduced paid-up Which of the following life insurance settlement options enables the beneficiary to conserve the proceeds of a life insurance policy? - Interest only 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: - The account value All of the following are true regarding annuities - 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. Which of the following would not be considered to be ordinary life insurance? - Group (Life Insruance) All of the following are true regarding dividends paid by a mutual life insurance company - 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 Which type of term life insurance has a level face amount but a premium that increases each year as the insured gets older? - Renewable The transfer of risk to an insurance company is an effective risk management technique when: - The amount and frequency of future losses are unknown The owner of a life insurance policy may do all of the following - Change the beneficiary Assign or transfer ownership in the policy Take a loan All of the following are true regarding key person life insurance: - The employer is the policyowner and the beneficiary Death benefits are payable to the employer tax free The employee is the insured If a corporation and a shareholder enter into an agreement that requires the corporation to buy the shareholder's shares upon his or her death, they have entered into: - A buy/sell agreement