1 | Page
rmin 2005 exam 4 Questions and Correct
Answers
From a risk management perspective, which of the following best
describes "premature death?" Ans: Death of a family income
earner during a dependency period
Select an answer that describes examples of business-related
premature death exposures. Ans: Death of a key employee with
expert knowledge
Which of the following specific needs for life insurance involves
things like legal fees and taxes? Ans: Estate clearance fund
Looking at the human life value calculation for Mikayla in the
video, compare the amount of life insurance would have Mikayla
needed if she planned to retire at 65 vs. 67 Ans: Mikayla would
need about less insurance (by around $75,000) if she plans to
retire earlier earlier
What is a level term contract? Ans: A form of term insurance in
which the face amount does not change over time
Which of the following is not among the three most popular forms
of life insurance today? Ans: Variable Life
Which of the following is TRUE about whole life insurance? Ans:
Cash values are guaranteed amounts that are stated in the policy
Which of the following is NOT true about Universal Life Insurance
Ans: The insurer chooses the premium you pay throughout the
life of the policy
Victoria intentionally understated her age on her application for
$100,000 in life insurance in order to receive a lower premium.
After Victoria died, the life insurer discovered her true age. Which
© 2025 All rights reserved
, 2 | Page
of the following best describes what will happen? Ans: The
insurer will pay the claim, but the benefit will be less than
$100,000
If a current mother of two knows she wants to split her death
benefit among all of her children even if she has more children,
what type of beneficiary designation should she use? Ans: class
a renewable term policy Ans: People who experience health
problems that might prevent them from obtaining other insurance
at a comparable price are more likely to renew their policies
a universal life policy that allows the insured to periodically
increase the amount of coverage Ans: People who experience
health problems that might prevent them from obtaining other
insurance at a comparable price are more likely to exercise their
right to increase the amount of coverage
a term policy with a cost of living rider Ans: People who
experience health problems that might prevent them from
obtaining other insurance at a comparable price are more likely to
exercise their right to increase coverage using a term policy with a
cost-of-living rider
For what type of insured/owner is an automatic premium loan
especially good? Ans: Someone who has developed a chronic
illness and probably not insurable anymore
Lump-sum option Ans: Results in the insurer paying the total
death benefit of the policy as a single settlement
Fixed-period option Ans: Results in the insurer paying proceeds in
equal installments over a specified time period
Fixed-amount option Ans: Results the payment of a specific
amount over a period of time that is determined by the time and
frequency of the payments and the interest rate paid by the
insurer
© 2025 All rights reserved
rmin 2005 exam 4 Questions and Correct
Answers
From a risk management perspective, which of the following best
describes "premature death?" Ans: Death of a family income
earner during a dependency period
Select an answer that describes examples of business-related
premature death exposures. Ans: Death of a key employee with
expert knowledge
Which of the following specific needs for life insurance involves
things like legal fees and taxes? Ans: Estate clearance fund
Looking at the human life value calculation for Mikayla in the
video, compare the amount of life insurance would have Mikayla
needed if she planned to retire at 65 vs. 67 Ans: Mikayla would
need about less insurance (by around $75,000) if she plans to
retire earlier earlier
What is a level term contract? Ans: A form of term insurance in
which the face amount does not change over time
Which of the following is not among the three most popular forms
of life insurance today? Ans: Variable Life
Which of the following is TRUE about whole life insurance? Ans:
Cash values are guaranteed amounts that are stated in the policy
Which of the following is NOT true about Universal Life Insurance
Ans: The insurer chooses the premium you pay throughout the
life of the policy
Victoria intentionally understated her age on her application for
$100,000 in life insurance in order to receive a lower premium.
After Victoria died, the life insurer discovered her true age. Which
© 2025 All rights reserved
, 2 | Page
of the following best describes what will happen? Ans: The
insurer will pay the claim, but the benefit will be less than
$100,000
If a current mother of two knows she wants to split her death
benefit among all of her children even if she has more children,
what type of beneficiary designation should she use? Ans: class
a renewable term policy Ans: People who experience health
problems that might prevent them from obtaining other insurance
at a comparable price are more likely to renew their policies
a universal life policy that allows the insured to periodically
increase the amount of coverage Ans: People who experience
health problems that might prevent them from obtaining other
insurance at a comparable price are more likely to exercise their
right to increase the amount of coverage
a term policy with a cost of living rider Ans: People who
experience health problems that might prevent them from
obtaining other insurance at a comparable price are more likely to
exercise their right to increase coverage using a term policy with a
cost-of-living rider
For what type of insured/owner is an automatic premium loan
especially good? Ans: Someone who has developed a chronic
illness and probably not insurable anymore
Lump-sum option Ans: Results in the insurer paying the total
death benefit of the policy as a single settlement
Fixed-period option Ans: Results in the insurer paying proceeds in
equal installments over a specified time period
Fixed-amount option Ans: Results the payment of a specific
amount over a period of time that is determined by the time and
frequency of the payments and the interest rate paid by the
insurer
© 2025 All rights reserved
