1. Dividend projections may be included in a proposal for a life insurance policy when which of the following is true? |
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2. Which is correct concerning a GRADED PREMIUM WHOLE LIFE policy? |
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3. All of the following are a parts of a life insurance policy EXCEPT: |
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4. The incontestable clause cannot be used for: 1) Intent to murder 2) Impersonation 3) Misrepresentation 4) If insured did not pay premiums |
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5. The incontestable clause permits insurers to contest a death claim: |
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6. Cloreen has a life insurance policy for $180,000. Her husband is a 50% beneficiary and each of her two children is a 25% beneficiary. Cloreen has a $30,000 loan against her policy. Cloreen dropped dead. How much does the husband receive? |
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7. All of the following are true about JUVENILE Policies EXCEPT: |
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8. Which of these is not a common form of term insurance? |
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9. A standard risk male is insured under a WHOLE LIFE Policy with an ACCIDENTAL DEATH RIDER. Which of the following is/are true? 1. The accidental death benefit is often equal to, or may be twice, the face value of the policy, depending on the contract. 2. If the insured died at age 72, the Accidental Death rider would still be in effect. |
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10. Joe the Ragman buys a $100,000 policy. He has a $50,000 mortgage from the bank. He assigns his policy as collateral to the bank, with the remaining balance, if any, to be paid to his wife Josephine. Joe has set up a/an: 1. Collateral Assignment 2. Bilateral Assignment 3. Absolute Assignment 4. Irrevocable Assignment |
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11. Which of the following statements about the Reinstatement Provision is true? 1. A new incontestable period begins at reinstatement. 2. A new suicide period begins at reinstatement. 3. All loans must be repaid. 4. No medical evaluation is required. |
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12. Features that may be included in most Term policies include which of the following? 1. Convertibility 2. Renewability 3. Waiver of Premium provision |
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13. The provision in a life insurance policy that provides protection against unintentional policy lapse is known as the: |
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14. Which of the following would provide more death benefit for your premium dollar while still accumulating cash value, assuming issue age 25? |
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15. A Variable Life insurance policy would be regulated by: |
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16. When term insurance is renewed, the premium amount rises to reflect the increased mortality risk due to the insured's increased age. What phrase best describes this approach to increasing premiums? |
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17. With regard to 10 year Family Income and Family Maintenance Plans, Fanny dropped dead in year 3. Which of the following is true? |
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18. What is the maximum interest rate an insurance company can charge the policyowner for a fixed or adjustable rate? |
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19. Where is the insuring clause of a life insurance policy found? |
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20. If an insured purchases a 20-year family maintenance policy at age 25, and then dies at age 35, how long would benefits be paid to his beneficiaries? |
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21. Signing over ALL rights of ownership in a policy by the owner is: |
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22. Which of the following statements about the reinstatement provision is true? |
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23. The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the: |
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24. In what respect do LIMITED PAY Life policies differ from STRAIGHT WHOLE Life policies? |
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25. A policy that is sold in proportioned units to cover the insured, spouse and children is called a: |
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26. All of the following statements regarding Modified Endowment Contracts are true except? |
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27. Which is true concerning a VARIABLE LIFE insurance policy? |
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28. Sue lost her job. Times were hard. She could not afford to pay the premiums on her life insurance policy. Which of the following non-forfeiture options should she elect to maximize her death benefits? |
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29. All the below are true about GUARANTEED RENEWABLE TERM insurance EXCEPT: |
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30. Gullible, age 27, is advised by his agent to purchase life insurance to cover a 20-year, $50,000 amortized business-improvement loan. Which of the following plans would adequately protect Gullible at the minimum premium outlay? |
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31. Which of the following is not true concerning the waiver of premium rider? |
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32. The following statements about UNIVERSAL LIFE are true, except: |
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33. Ibey Broke, age 62, has been paying premiums for many years on his Whole Life policy, which now has a cash value of $9,850. If Ibey decided to drop the policy, which of the following would apply? |
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34. Which of the following policies allow for withdrawals: |
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35. The applicant chooses the length of the premium-paying period when selecting the type of policy that should best meet his/her objectives. Which type of policy has the highest initial premium and shortest pay period? |
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36. The form of insurance designed to cover the liability of a borrower with an amortized loan is a/an: |
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37. What is the purpose of policy exclusions? |
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38. A $10,000 life insurance policy with a Triple Indemnity clause has been in force for 3 years. Black Cloud, the insured, is injured in a train wreck and dies in a hospital 5 months later. The death proceeds payable under the policy would be: |
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39. All of the below are true features of VARIABLE LIFE Insurance EXCEPT: |
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40. The fifth dividend option will purchase: |
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41. A life insurance policy provides a straight coverage of $100,000 for a period of five years. Which of the following terms correctly apply to this policy? 1. Permanent 2. Term 3. Level 4. Variable |
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42. At age 30, OohJay wishes to purchase a Whole Life policy. His agent explains that he can pay for the policy in several ways. One method is called 20-Pay Life, and another Straight Life. OohJay wishes to know which plan will accumulate cash value at a faster rate in the early years of the policy. Which of the following would be the agent's most appropriate response? |
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43. The Waiver of Premium: |
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44. Which of the following statements is true about a policy assignment? |
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45. An insured commits suicide with-in the first two years of the life insurance policy, which course of action will the insurance take? |
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46. Justin purchases a plan that will pay his beneficiary a lump sum and then payments for 10 years after he dies. Which type of plan did Justin purchase? |
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47. Rusty buys a 20 pay whole life policy on his ten year old daughter with a payor provision. Rusty dies in year 10. What happens to the policy? |
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48. Which fo the following policies would have a higher premium? |
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49. All of the following are true about an ENDOWMENT policy EXCEPT: |
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50. The party to whom the life insurance policy cash values belongs is: |
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51. Mr. Ramon purchased a $10,000 10 year limited pay life insurance policy on his ten year old son Luis. A payor rider was added for an additional premium. Should Mr. Ramon die when Luis is 15 when would Luis begin making premium payments? |
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52. Which Policy below, if issued at age 40, has premiums payable for 60 years, insurance protection for 60 years, and endows at age 100? |
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53. Ordinary Life policies must include all of the following provisions EXCEPT: |
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54. The delayed payment provision permits an insurer to postpone payments of cash surrender values after policyowners request payment for a period of: |
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55. Which of the following statements about a Renewable Term policy is true? |
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56. Cash values must be present in life policies: 1) Ordinary 3 year 2) Industrial 3 year 3) Ordinary 5 year 4) Industrial 5 year |
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57. Industrial life insurance is known as all the following types of insurance except: |
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58. Which of the following policies was used to accumulate funds for education? |
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59. Which of the following must exist before a non-forfeiture option can be elected? |
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60. Which of the following is a non-forfeiture option that provides continuing cash value buildup? |
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61. A person who desires protection permanently but does not want to pay premiums indefinitely would purchase which of the following? |
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62. All of the following apply to PARTICIPATING policy dividends EXCEPT: |
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63. Which of the following individual policy conversions is usually permitted without any evidence of insurability? |
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64. Which of the following is an example of a Limited-Pay Life policy? |
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65. When does the time period covered by the Ten Day Free Look provision of a life insurance contract start? |
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66. If a stock company sells both participating and non-participating policies it is said to be operating on the: |
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67. Max has a $100,000 life insurance policy with cash value totaling $20,000. The loan rate is a fixed 8%. The agent suggests that Max strip his policy of the cash value and invest this money in a high yielding single premium annuity. This could be called: |
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68. The NON-FORFEITURE OPTIONS include all of the following EXCEPT: |
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69. The insuring clause is typically undersigned by: |
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70. When someone other than the insured is the owner of a life insurance policy, the owner may do all of the following without the insured's consent EXCEPT: |
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71. Which of the following types of insurance policies would provide the greatest amount of protection for a temporary period during which the insured will have limited financial resources? |
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72. Rights of policy ownership include all the following except: |
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73. How is a policy loan repaid if the policy pays a death claim? |
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74. Which of the following statements are true about exercising a Guaranteed Insurability option? 1. The new insurance is available at the original issue age rate. 2. Evidence of insurability is not required. 3. The insured can exercise the option at any time after the age of 21. 4. The maximum purchase is specified in the contract. |
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75. An applicant for reinstatement may have to do all of the following EXCEPT: |
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76. Each of the following statements about the incontestable clause in a life insurance policy is correct except: |
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77. An applicant with heart problems denied this material fact and died within the 2 year incontestable period. However, the death was the result of a traffic accident. The insurance company will take which course of action? |
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78. Which is the only type of rider added at no additional cost to the policyowner? |
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79. The purpose of the grace period is to: |
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80. Which of the following is provided by a PAYOR rider on a policy with a minor child as the insured? |
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81. If the insured understated his/her age and the error is discovered after the insured's death, the insurance company will: |
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82. Patches owns a 30-Pay Life policy that he purchased at the age of 30. The policy will endow at age: |
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83. The owner of a business is insured under a $100,000 Key Employee Life policy that contains a Double Indemnity clause and a Suicide clause. The business has paid the annual premium of $2,000. Six months after the inception date of the policy, the insured commits suicide. The insurance company's liability for payment is: |
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84. The insured died during the Grace Period of her life insurance policy and had not paid the required annual premium. The insurance company is obligated to pay which of the following to the beneficiary? |
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85. Which of the following statements concerning an insurance company's separate account is/are true? 1. Separate account funds are free from the claims of the insurance company's creditors 2. In the event of insolvency of the insurance company, the separate account funds are protected for the policyowner. 3. Indexed annuities may be set up with separate accounts. 4. Separate account funds are guaranteed. |
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86. A UNIVERSAL Life Insurance policy has all the following features EXCEPT: |
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87. An insured misrepresented a material fact on his application. The policy was issued but the application was not attached to the policy. The insured died shortly after the policy was issued. The company must pay the claim because of which provision? |
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88. Forrest owns a 30-Pay Life policy that he purchased at the age of 30. The cash value will equal the face amount of the policy when he reaches the age of: |
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89. JOINT LIFE insurance policies insure two lives for a single death on one policy. They may be which of the following types: 1. Joint Life pays the face at the first death 2. Joint Life pays the face at the SECOND death. |
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90. What type of term insurance is utilized in a Family Maintenance Plan? |
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91. Variable Life insurance is considered: |
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92. Universal life has 2 optional death benefits. They are: 1. Death benefits include the cash value and the pure amount at risk (level face). 2. Death benefits remain a constant amount at risk plus any cash value (increasing). 3. Death benefits are tied to the market value of the mutual funds. |
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93. Ernest has a life insurance policy with a death benefit of $100,000, consisting of $50,000 whole life and a $50,000 level term rider. His agent has informed him that electing the extended term non-forfeiture option would provide him with a death benefit of how much? |
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94. Which of the following statements regarding juvenile insurance is not true? |
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