Life Insurance Exam Questions & Answers/ A+
Score Solution.
J has a life policy with the Guaranteed Insurability rider. J has just celebrated their
42nd birthday and realizes that she wants to use her rider and buy more death
benefit. Which of the following will apply to J's request?
A: The insurer will allow J to add more insurance without proving insurability.
B: The insurer will allow J to add more insurance pending a paramedical exam.
C: The insurer will deny J's request to add more insurance.
D: The insurer will allow J to add more coverage pending proof of insurability and
extra premium. - Answer: C: The insurer will deny J's request to add more
insurance.
,Which entity listed below has the authority to issue a limited lines producer
license?
A: The Illinois Insurance Board
B: The Director
C: Fire
D: An insurance company - Answer: B: The Director
A Viator has decided to rescind a deal after payment has been made. How many
days does a Viator in this situation have?
A: 30 days
B: 15 days
C: 10 days
D: It is too late - Answer: B: 15 days
If a producer charges a service fee in addition to being paid a commission for a
sale of insurance, what is required of the producer in such an instance?
A: If the total compensation will exceed 10% of the annual premium amount there
must be a written disclosure document signed by the producer and the applicant
for insurance.
B: If the total compensation will exceed 10% of the monthly premium amount
there must be a written disclosure document signed by the producer and the
applicant for insurance.
C: The producer must provide written disclosure to the insurance applicant.
D: To report the producer's illegal activity to the Director because such a fee is
illegal to collect from a prospective insured. - Answer: A: If the total compensation
,will exceed 10% of the annual premium amount there must be a written
disclosure document signed by the producer and the applicant for insurance.
When K applied for a policy, he misstated his age. A few years after the policy has
been issued, K is still alive and the company has found the misrepresentation.
Which of the following is most likely to occur?
A: The insurer will cancel the policy and refund all premiums.
B: The death benefit will be adjusted.
C: The insurer has the option what action to take.
D: The premiums are adjusted. - Answer: C: The insurer has the option what
action to take.
D has a policy from a participating insurer and receives a dividend. D would really
like to increase her coverage without adding premium to the policy. The dividend
option D should select is:
A: Cash
B: Paid-Up Addition
C: One-Year Term Option
D: Accumulation at Interest - Answer: B: Paid-Up Addition
Each of the following is true regarding a Joint Life policy EXCEPT:
A: It insures two or more lives at the same time.
B: It insures two or more lives under one policy.
C: It pays the death benefit when the first insured dies.
, D: Only one insured must be healthy for the policy to be issued. - Answer: D: Only
one insured must be healthy for the policy to be issued.
If a policy is being replaced, when must the agent forward the notice regarding
replacement form to the replacing insurer?
A: Once the replacement policy is approved.
B: The agent only sends the notice in if initial consideration takes place.
C: The agent only has to send it in if the insured asks the agent.
D: At the time of replacement application. - Answer: D: At the time of
replacement application.
Which of the following dividend options can a policy holder select to completely
pay their policy off before endowment?
A: Acceleration of Endowment
B: Reduce Premiums
C: Accumulation at Interest
D: Paid-Up Option - Answer: D: Paid-Up Option
IRA's are:
A: Available to anyone
B: Available to anyone that has a 401K
C: Available to anyone with earned income
D: Available to anyone with earned income who has not attained age 70 1/2 -
Answer: D: Available to anyone with earned income who has not attained age 70
1/2
Score Solution.
J has a life policy with the Guaranteed Insurability rider. J has just celebrated their
42nd birthday and realizes that she wants to use her rider and buy more death
benefit. Which of the following will apply to J's request?
A: The insurer will allow J to add more insurance without proving insurability.
B: The insurer will allow J to add more insurance pending a paramedical exam.
C: The insurer will deny J's request to add more insurance.
D: The insurer will allow J to add more coverage pending proof of insurability and
extra premium. - Answer: C: The insurer will deny J's request to add more
insurance.
,Which entity listed below has the authority to issue a limited lines producer
license?
A: The Illinois Insurance Board
B: The Director
C: Fire
D: An insurance company - Answer: B: The Director
A Viator has decided to rescind a deal after payment has been made. How many
days does a Viator in this situation have?
A: 30 days
B: 15 days
C: 10 days
D: It is too late - Answer: B: 15 days
If a producer charges a service fee in addition to being paid a commission for a
sale of insurance, what is required of the producer in such an instance?
A: If the total compensation will exceed 10% of the annual premium amount there
must be a written disclosure document signed by the producer and the applicant
for insurance.
B: If the total compensation will exceed 10% of the monthly premium amount
there must be a written disclosure document signed by the producer and the
applicant for insurance.
C: The producer must provide written disclosure to the insurance applicant.
D: To report the producer's illegal activity to the Director because such a fee is
illegal to collect from a prospective insured. - Answer: A: If the total compensation
,will exceed 10% of the annual premium amount there must be a written
disclosure document signed by the producer and the applicant for insurance.
When K applied for a policy, he misstated his age. A few years after the policy has
been issued, K is still alive and the company has found the misrepresentation.
Which of the following is most likely to occur?
A: The insurer will cancel the policy and refund all premiums.
B: The death benefit will be adjusted.
C: The insurer has the option what action to take.
D: The premiums are adjusted. - Answer: C: The insurer has the option what
action to take.
D has a policy from a participating insurer and receives a dividend. D would really
like to increase her coverage without adding premium to the policy. The dividend
option D should select is:
A: Cash
B: Paid-Up Addition
C: One-Year Term Option
D: Accumulation at Interest - Answer: B: Paid-Up Addition
Each of the following is true regarding a Joint Life policy EXCEPT:
A: It insures two or more lives at the same time.
B: It insures two or more lives under one policy.
C: It pays the death benefit when the first insured dies.
, D: Only one insured must be healthy for the policy to be issued. - Answer: D: Only
one insured must be healthy for the policy to be issued.
If a policy is being replaced, when must the agent forward the notice regarding
replacement form to the replacing insurer?
A: Once the replacement policy is approved.
B: The agent only sends the notice in if initial consideration takes place.
C: The agent only has to send it in if the insured asks the agent.
D: At the time of replacement application. - Answer: D: At the time of
replacement application.
Which of the following dividend options can a policy holder select to completely
pay their policy off before endowment?
A: Acceleration of Endowment
B: Reduce Premiums
C: Accumulation at Interest
D: Paid-Up Option - Answer: D: Paid-Up Option
IRA's are:
A: Available to anyone
B: Available to anyone that has a 401K
C: Available to anyone with earned income
D: Available to anyone with earned income who has not attained age 70 1/2 -
Answer: D: Available to anyone with earned income who has not attained age 70
1/2
