Ucanpass UPDATED ACTUAL Exam
Questions and CORRECT Answers
In terms of parties to a contract, which of the following does NOT describe a competent party?
a)The person must not be under the influence of drugs or alcohol.
b)The person must be of legal age.
c)The person must be mentally competent to understand the contract.
d)The person must have at least completed secondary education. - CORRECT ANSWER -
The parties to a contract must be capable of entering into a contract in the eyes of the law.
Generally, this requires that both parties be of legal age, mentally competent to understand the
contract, and not under the influence of drugs or alcohol.
Which of the following best describes the policy nonrenewal?a)Voiding of a policy due to a
misrepresentation on the application.
b)Revocation of one's insurance policy by the insurer.
c)Discontinuance of an insurance policy by the insured on the policy anniversary date.
d)Return of the policy after a 10-day free look. - CORRECT ANSWER - Nonrenewal is
the discontinuance of an insurance policy beyond its original term, usually on the policy
anniversary or premium due date.
What element is tied to an Indexed Universal Life policy? - CORRECT ANSWER - cash
value
, A key person insurance policy can pay for which of the following?
a)Workers compensation
b)Hospital bills of the key employee
c)Costs of training a replacement
d)Loss of personal income - CORRECT ANSWER - costs of training a replacement
Which of the following statements best describes the effect the Accelerated Benefit provision
would have on the benefits paid to the beneficiary?
a)It will decrease the benefits paid to the beneficiary.
b)It will not affect the benefits paid to the beneficiary.
c)It will reduce the benefits by 70%.
d)It will increase the benefits paid to the beneficiary. - CORRECT ANSWER -
Accelerated Benefit provision allows the early payment of some portion of the death benefit if
the insured becomes terminally ill or is confined to a long-term care facility. The face amount of
insurance is therefore reduced, which will decrease the benefits paid to the beneficiary.
When an insured makes truthful statements on the application for insurance and pays the
required premium, it is known as which of the following?
a) Contract of adhesion
b) Acceptance
c) Consideration
Questions and CORRECT Answers
In terms of parties to a contract, which of the following does NOT describe a competent party?
a)The person must not be under the influence of drugs or alcohol.
b)The person must be of legal age.
c)The person must be mentally competent to understand the contract.
d)The person must have at least completed secondary education. - CORRECT ANSWER -
The parties to a contract must be capable of entering into a contract in the eyes of the law.
Generally, this requires that both parties be of legal age, mentally competent to understand the
contract, and not under the influence of drugs or alcohol.
Which of the following best describes the policy nonrenewal?a)Voiding of a policy due to a
misrepresentation on the application.
b)Revocation of one's insurance policy by the insurer.
c)Discontinuance of an insurance policy by the insured on the policy anniversary date.
d)Return of the policy after a 10-day free look. - CORRECT ANSWER - Nonrenewal is
the discontinuance of an insurance policy beyond its original term, usually on the policy
anniversary or premium due date.
What element is tied to an Indexed Universal Life policy? - CORRECT ANSWER - cash
value
, A key person insurance policy can pay for which of the following?
a)Workers compensation
b)Hospital bills of the key employee
c)Costs of training a replacement
d)Loss of personal income - CORRECT ANSWER - costs of training a replacement
Which of the following statements best describes the effect the Accelerated Benefit provision
would have on the benefits paid to the beneficiary?
a)It will decrease the benefits paid to the beneficiary.
b)It will not affect the benefits paid to the beneficiary.
c)It will reduce the benefits by 70%.
d)It will increase the benefits paid to the beneficiary. - CORRECT ANSWER -
Accelerated Benefit provision allows the early payment of some portion of the death benefit if
the insured becomes terminally ill or is confined to a long-term care facility. The face amount of
insurance is therefore reduced, which will decrease the benefits paid to the beneficiary.
When an insured makes truthful statements on the application for insurance and pays the
required premium, it is known as which of the following?
a) Contract of adhesion
b) Acceptance
c) Consideration
