ExamFX Life Insurance Final Exam Questions With Complete Solutions

The entire contract includes all of the following EXCEPT... correct answer: A buyer's guide All of the following statements about indexed whole life insurance EXCEPT... correct answer: The death benefit is not increased What guarantees that the information explained in the insurance contract is true? correct answer: A Warranty The entire contract includes: correct answer: (1) the policy, (2) a copy of the application, and (3) any riders or amendments. Under an indexed whole life policy, the premium is fixed, but the death benefit is... correct answer: guaranteed ... are considered statements of fact or something guaranteed to be true. correct answer: Warranties A breach of warranty can be considered grounds for ________________ the policy. correct answer: voiding A graded premium life insurance policy is a modified form of... correct answer: Whole life ... a whole life policy with premiums that increase annually over the first 5 to 10 years. correct answer: Graded Premium An insured bought an insurance policy that requires him to pay $150 in premiums on the 15th of each month. He then takes an extended vacation and forgets to pay the premium. Ten days later, his policy is still in effect and has not lapsed. What policy provision allowed for this? correct answer: Grace period Grace period is a mandatory provision found in all life insurance policies that provides coverage for a period of time after the _____________________ becomes past due. correct answer: premium Which of the following indicates the person upon whose life the annuity income amount is determined? correct answer: The Annuitant The annuitant is the person whose life the ______________