TRAD IC Exam - beneficiary's permission, can a. Avail of a non...

TRAD IC Exam

• In a policy where an irrevocable beneficiary has been designated the in- sured, without the

beneficiary's permission, can

• Avail of a non-forfeiture option
• Discontinue premium payments
• Borrow minimal cash loan
• Alter the dividend option presently in effect

Answer: B

• A father has his present life insurance payable to his estate and because he has now retired, he

wants to pass the policy on to his son who will assume the premium payments.Which of the following will he have to appoint his son to achieve his desire and protect the son from Estate Tax Liability?

• Irrevocable primary beneficiary
• Absolute assignee
• Irrevocable secondary beneficiary
• Revocable primary beneficiary

Answer: B

• In the event that a policy owner elects the paid-up insurance option
• The premiums stop and the policy continues for the full face amount until age 65

• The insurance continues at a reduced amount and with a reduced premium
• The policy will automatically terminate
• The premiums cease and protection continues with a reduced amount of coverage

Answer: D

• The company will allow a policy change from a higher premium to a lower premium

provided the insured 1 / 2

• Buys a new plan altogether
• Presents satisfactory evidence of insurability
• Momentarily assigns the policy to the company
• Obtains written consent from his or her spouse

Answer: B

• A policy which permits the policy holder to vary the level of premium or the sum insured,

and has its cash values dependent upon the investment performance and the level of premium paid is known as policy.

• Participating whole life policy
• Participating endowment
• Universal life
• None the above

Answer: C

6. Paid-up additions:

• Affect both cash and loan value of the policy
• Don't affect the cash value of the policy
• Don't affect the loan or cash value of the policy
• Only affect the cash value of the policy

Answer: A

• Indicate which of the following is not function of an application for life insurance policy.
• To give details pertaining to non-forfeiture option
• To furnish information on which contact of life insurance may be written
• To furnish initial information as to insurability
• To convey to the company the desire of the applicant to obtain insurance

Answer: D

• Both endowment and term life insurance policies provide that
• No cash value is available to the policy owner during the term of the policy
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