It is the distribution of successes of funds accumulated by the insurer and participating
policies. - ANSWERWhich of the following statements regarding a life insurance policy
Dividened is true?
Losses due to fraud are eliminated. - ANSWERWhich of the following is not a benefit of
insurance?
Participating - ANSWERJohn owns an insurance policy that gives him the right to share
and the insurer's surplus. What kind of policy is this?
Contract that allows the policy owner to receive a share surplus in the form of policy
dividends. - ANSWERWhat is the participating life insurance policy?
Marketing - ANSWEROne important function of an insurance company is to identify and
sell potential customers which of these BEST describes this function?
Mutual Insurer - ANSWERAn insurer on by its policyholders is called a
Demutualization - ANSWERWhen a mutual insurer becomes a stock company the
process is called?
Increases the unknown premium reserve - ANSWERWhich is not a characteristic for
reinsurance?
Capitive insurer - ANSWERWhich of the following is an insurer established by a parent
company for the purpose of ensuring the parent companies loss exposures?
Risk is eliminated - ANSWERWhich of the following is a type of insurance where an
insurer transfer loss exposures from written for it's insureds?
The greater the number insured the more accurately than sure can predict losses and
set appropriate premiums - ANSWERAnd insured having a large number of similar
exposure unit it's considered important because.
Speculative risk - ANSWERWhich of the following is a situation where there is a
possibility of either lost or a gain?
Per risk is the only insurable risk - ANSWERWhich of these statements correctly
describes risk?
Probability that an event will occur - ANSWERWhich of the following is not considered
to be a definition of the term "loss"?
Lost must be castastrophic - ANSWERWhich of the following is not an element of an
insurable risk?
A condition that may increase the likelihood of a loss occurring. - ANSWERA hazard
can be best described as.
Moral Hazard - ANSWERWhich of the following describes the increase in the probability
of a loss due to ensure it's dishonest tendencies?
Increased chance of lost because of an insurance this honest tendencies. -
ANSWERMoral hazard is described as the
Loss Exposure - ANSWERWhich of the following is considered to be any situation that
has the potential for loss?
Principle of indemnity - ANSWERRestoring an insured to the same condition as before
a loss is known as.
Law of Large Numbers - ANSWERWhich of the following best describes the statement?
"the more times and event is repeating, the more predicting the outcome becomes?"
Probability of loss is a unknown - ANSWERAll of the following is a circumstance must
be met for loss retention to be an effective risk management technique except?
Pure Risk - ANSWERA situation in which there is only a chance of loss or no loss is a?
,Probability of loss - ANSWERWhich of the following is not required in the content of a
policy?
indemnity - ANSWERRestoring and insured to the same condition as before a loss is an
example of the principal of?
Equal consideration is required between the involved parties - ANSWERWhich of the
following is not a requirement of a contract?
Rescind a policy - ANSWERIf a material warranty violation on the part of the insurance
is found, what recourse does an insurer have?
One party is restored to the same financial position the party was in before the loss
occurred - ANSWERWhich of the following statements correctly describes a contract of
indemnity?
Indemnity - ANSWERReasonably necessarily as a currently described with the
statement " insureds are entitled to recover and amount not greater than the amount of
the lights? "
A contract may be accepted/rejected by the insured - ANSWERWhich statement is
correct when describing a contract adhesion?
Only one party (the insurer) makes any kind of legally enforceable promise. -
ANSWERAnd unliteral contract is one which?
An offer and acceptance of the contract terms - ANSWERA contract requires.
Make whole - ANSWERWhat does the insurance term "indemnity" referred to?
The insured and insured contribution equally to the contract. - ANSWERWhich of the
following statements about aleatory contract is not true?
Materiality of concealment - ANSWERThe importance of a representation is
demonstrated in what rule?
Fiduciary - ANSWERWhen handling premiums for insurance, and each and is acting in
which capacity?
Rescinding the contract - ANSWERWhich course of action is ensuring title II when
deliberate concealment is committed by the insured?
The policy's face amount - ANSWERAnd a life insurance policies limit of liability would
be.
Require a high premium payable at each renewal - ANSWERIn a renewable term life
insurance policy the contract will usually.
Decreasing term - ANSWERWhich of the following type of life insurance is normally
associated with a mortgage loan?
Non-medical - ANSWERWhich of the following is a life insurance policy that does not
require a physical exam?
Mortgage Redemption - ANSWERScott has just purchased a new house. He is now
shopping for a life insurance policy that provides a death benefit that matches the
protecting a death benefit that matches the project is outstanding debt of his mortgage.
Which live policy would best suit his needs?
Only children born to policies insue date maybe including - ANSWERWhich of the
following statements do not apply to child coverage in a family policy?
Modified Endowment Contract (MEC) - ANSWERAnd insurance policy Braden after
1988 the fails to pass to seven- pay test is known as.
Verbal Life - ANSWERAn insurance policy where the insured can choose where the
cash value can be invested is called
, Applicants are not requested to answer medical questions on the application -
ANSWERWhich of the following is not a true description of a non-medical life
insurance?
Joint Life Policy - ANSWERTom is shopping for a policy that covers two people I will
pay the face amount ONLY when the first person dies the type of life policy he is looking
for is called a period
Renewable Term - ANSWERLynn owns a life policy the guaranteed the right to renew
the policy each year, regardless of health, but an increased premium, what kind of
policy is this?
Modify premium, ordinary life, single premium - ANSWERWhat is the proper order of
initial life insurance premiums from lowest to highest?
Second-to-die policy - ANSWERJohn and Mary having a handicapped child that is
financially dependent upon them. The death of one of the parents will not be financially
disastrous, however the death of both likely would be. Which policy would best suited
for them?
10% - ANSWERMark, age 45 has a modified endowment contract what is the tax
penalty for taking a loan against his policy prior to age 59 1/2?
Conversion of child's coverage to permanent insurance regarding evidence of
insurability. - ANSWERWhich of the following is not true regarding a family policy that
covers children?
Currently Insured - ANSWERWhich Social Security said it does a worker with 6 quarter
of coverage during the last 13 quarter period have?
endowment insurance - ANSWERThe life-insurance policy that pays the face amount if
the insured survive to a specific period of time it's called.
12 months - ANSWERHow long is a person expected to be disabled in order to receive
Social Security disability benefits?
10% - ANSWERAnd a modified endowment contract, the penalty tax imposed a
premature withdraws is.
Benefits are designed to replace the entire amount of the workers earnings -
ANSWERWhich statement is not true regarding Social Security benefits?
Universal Life Insurance - ANSWERWhich of the following types of life insurance
combined the savings element along with a flexible premium option?
Without producing proof of insurability - ANSWERA renewable term life insurance policy
allows the policy owner the right to renew the policy.
A nonforfeiture option can be used to insurance the death benefit - ANSWERAll of these
are valid options for an adjustable life policy EXCEPT ?
Accelerated Death Benefits - ANSWERWhich provision will pay a portion of the death
benefit prior to the insured's death due to a serious illness?
Purchase additional coverage with no evidence of insurability required - ANSWERWhat
does the guaranteed insurability option alarm and insured to do?
Mike has option of using his cash value to purchase a reduced amount of pay-up whole
life insurance - ANSWERMike and Ike I 30 years old identical twins. Both are in
excellent health. Each broker purchases in life policy that has a $750 annual premium.
Mike buy a 10 year renewable term policy. Ike purchase a whole life policy. All of the
following statements are true EXCEPT.
policies. - ANSWERWhich of the following statements regarding a life insurance policy
Dividened is true?
Losses due to fraud are eliminated. - ANSWERWhich of the following is not a benefit of
insurance?
Participating - ANSWERJohn owns an insurance policy that gives him the right to share
and the insurer's surplus. What kind of policy is this?
Contract that allows the policy owner to receive a share surplus in the form of policy
dividends. - ANSWERWhat is the participating life insurance policy?
Marketing - ANSWEROne important function of an insurance company is to identify and
sell potential customers which of these BEST describes this function?
Mutual Insurer - ANSWERAn insurer on by its policyholders is called a
Demutualization - ANSWERWhen a mutual insurer becomes a stock company the
process is called?
Increases the unknown premium reserve - ANSWERWhich is not a characteristic for
reinsurance?
Capitive insurer - ANSWERWhich of the following is an insurer established by a parent
company for the purpose of ensuring the parent companies loss exposures?
Risk is eliminated - ANSWERWhich of the following is a type of insurance where an
insurer transfer loss exposures from written for it's insureds?
The greater the number insured the more accurately than sure can predict losses and
set appropriate premiums - ANSWERAnd insured having a large number of similar
exposure unit it's considered important because.
Speculative risk - ANSWERWhich of the following is a situation where there is a
possibility of either lost or a gain?
Per risk is the only insurable risk - ANSWERWhich of these statements correctly
describes risk?
Probability that an event will occur - ANSWERWhich of the following is not considered
to be a definition of the term "loss"?
Lost must be castastrophic - ANSWERWhich of the following is not an element of an
insurable risk?
A condition that may increase the likelihood of a loss occurring. - ANSWERA hazard
can be best described as.
Moral Hazard - ANSWERWhich of the following describes the increase in the probability
of a loss due to ensure it's dishonest tendencies?
Increased chance of lost because of an insurance this honest tendencies. -
ANSWERMoral hazard is described as the
Loss Exposure - ANSWERWhich of the following is considered to be any situation that
has the potential for loss?
Principle of indemnity - ANSWERRestoring an insured to the same condition as before
a loss is known as.
Law of Large Numbers - ANSWERWhich of the following best describes the statement?
"the more times and event is repeating, the more predicting the outcome becomes?"
Probability of loss is a unknown - ANSWERAll of the following is a circumstance must
be met for loss retention to be an effective risk management technique except?
Pure Risk - ANSWERA situation in which there is only a chance of loss or no loss is a?
,Probability of loss - ANSWERWhich of the following is not required in the content of a
policy?
indemnity - ANSWERRestoring and insured to the same condition as before a loss is an
example of the principal of?
Equal consideration is required between the involved parties - ANSWERWhich of the
following is not a requirement of a contract?
Rescind a policy - ANSWERIf a material warranty violation on the part of the insurance
is found, what recourse does an insurer have?
One party is restored to the same financial position the party was in before the loss
occurred - ANSWERWhich of the following statements correctly describes a contract of
indemnity?
Indemnity - ANSWERReasonably necessarily as a currently described with the
statement " insureds are entitled to recover and amount not greater than the amount of
the lights? "
A contract may be accepted/rejected by the insured - ANSWERWhich statement is
correct when describing a contract adhesion?
Only one party (the insurer) makes any kind of legally enforceable promise. -
ANSWERAnd unliteral contract is one which?
An offer and acceptance of the contract terms - ANSWERA contract requires.
Make whole - ANSWERWhat does the insurance term "indemnity" referred to?
The insured and insured contribution equally to the contract. - ANSWERWhich of the
following statements about aleatory contract is not true?
Materiality of concealment - ANSWERThe importance of a representation is
demonstrated in what rule?
Fiduciary - ANSWERWhen handling premiums for insurance, and each and is acting in
which capacity?
Rescinding the contract - ANSWERWhich course of action is ensuring title II when
deliberate concealment is committed by the insured?
The policy's face amount - ANSWERAnd a life insurance policies limit of liability would
be.
Require a high premium payable at each renewal - ANSWERIn a renewable term life
insurance policy the contract will usually.
Decreasing term - ANSWERWhich of the following type of life insurance is normally
associated with a mortgage loan?
Non-medical - ANSWERWhich of the following is a life insurance policy that does not
require a physical exam?
Mortgage Redemption - ANSWERScott has just purchased a new house. He is now
shopping for a life insurance policy that provides a death benefit that matches the
protecting a death benefit that matches the project is outstanding debt of his mortgage.
Which live policy would best suit his needs?
Only children born to policies insue date maybe including - ANSWERWhich of the
following statements do not apply to child coverage in a family policy?
Modified Endowment Contract (MEC) - ANSWERAnd insurance policy Braden after
1988 the fails to pass to seven- pay test is known as.
Verbal Life - ANSWERAn insurance policy where the insured can choose where the
cash value can be invested is called
, Applicants are not requested to answer medical questions on the application -
ANSWERWhich of the following is not a true description of a non-medical life
insurance?
Joint Life Policy - ANSWERTom is shopping for a policy that covers two people I will
pay the face amount ONLY when the first person dies the type of life policy he is looking
for is called a period
Renewable Term - ANSWERLynn owns a life policy the guaranteed the right to renew
the policy each year, regardless of health, but an increased premium, what kind of
policy is this?
Modify premium, ordinary life, single premium - ANSWERWhat is the proper order of
initial life insurance premiums from lowest to highest?
Second-to-die policy - ANSWERJohn and Mary having a handicapped child that is
financially dependent upon them. The death of one of the parents will not be financially
disastrous, however the death of both likely would be. Which policy would best suited
for them?
10% - ANSWERMark, age 45 has a modified endowment contract what is the tax
penalty for taking a loan against his policy prior to age 59 1/2?
Conversion of child's coverage to permanent insurance regarding evidence of
insurability. - ANSWERWhich of the following is not true regarding a family policy that
covers children?
Currently Insured - ANSWERWhich Social Security said it does a worker with 6 quarter
of coverage during the last 13 quarter period have?
endowment insurance - ANSWERThe life-insurance policy that pays the face amount if
the insured survive to a specific period of time it's called.
12 months - ANSWERHow long is a person expected to be disabled in order to receive
Social Security disability benefits?
10% - ANSWERAnd a modified endowment contract, the penalty tax imposed a
premature withdraws is.
Benefits are designed to replace the entire amount of the workers earnings -
ANSWERWhich statement is not true regarding Social Security benefits?
Universal Life Insurance - ANSWERWhich of the following types of life insurance
combined the savings element along with a flexible premium option?
Without producing proof of insurability - ANSWERA renewable term life insurance policy
allows the policy owner the right to renew the policy.
A nonforfeiture option can be used to insurance the death benefit - ANSWERAll of these
are valid options for an adjustable life policy EXCEPT ?
Accelerated Death Benefits - ANSWERWhich provision will pay a portion of the death
benefit prior to the insured's death due to a serious illness?
Purchase additional coverage with no evidence of insurability required - ANSWERWhat
does the guaranteed insurability option alarm and insured to do?
Mike has option of using his cash value to purchase a reduced amount of pay-up whole
life insurance - ANSWERMike and Ike I 30 years old identical twins. Both are in
excellent health. Each broker purchases in life policy that has a $750 annual premium.
Mike buy a 10 year renewable term policy. Ike purchase a whole life policy. All of the
following statements are true EXCEPT.
