Ohio Life, Accident & Health Insurance Exam (Series 11-35), Life Insurance Basics correct 100%(RATED A+)

What type of report provides information about an applicant's hobbies, habits, and financial status? - ANSWER Investigative consumer report What are the three factors that determine the premium for a particular life insurance policy? - ANSWER Mortality, interest, expense How does the premium mode affect the total premium paid for insurance for the year? - ANSWER Higher frequency of payments will result in higher overall premium Can insurers advertise the existence of the guaranty association during solicitation and sale of insurance policies? - ANSWER No, advertising the existence of the guaranty association for the purposes of solicitation and sale of insurance policies by the insurer is an illegal business practice What is the term that describes the frequency and amount of the premium payment - ANSWER Premium mode If an applicant for a life insurance policy and the potential insured are two different people, what would be the underwriter's main concern? - ANSWER The existence of insurable interest A business is the owner and beneficiary of a key-person life policy. When the business collects the policy benefit, how is it taxed? - ANSWER The benefit is received tax free What document describes the specific information about a policy? - ANSWER Policy summary Mortality tables are used by insurance companies to predict what? - ANSWER Life expectancy and death rates for specific groups of individuals What are illustrations in a life insurance policy? - ANSWER Presentations of non guaranteed elements in the policy All other factors being equal, which premium payment mode would require a higher overall premium: monthly or annual? - ANSWER Monthly When must insurable interest exist in a life insurance policy? - ANSWER At the time of application What does liquidity mean in a life insurance policy? - ANSWER Availability of cash value What are the personal uses of life insurance? - ANSWER Survivor protection, estate creation and conservation, cash accumulation and liquidity If an insured changes his payment plan from monthly to annually, what happens to the total premium? - ANSWER Decrease What type of life insurance offers an applicant a cash value element - ANSWER Permanent Who is responsible for the contents of insurance advertisements? - ANSWER The insurance company Who is the beneficiary on a key-person life insurance policy? - ANSWER The employer At what point does coverage begin when an agent issues a conditional receipt for a life insurance policy? - ANSWER Either on the date of the application or the date of the medical exam, whichever occurs last What is the purpose of the agent's report during the application process? - ANSWER Agent's personal observations about the proposed insured which may help during the