Trad Mock Exam - offering him a policy using the correct selling...

Trad Mock Exam

• An agent who determine a prospects complete financial requirements preparatory to

offering him a policy using the correct selling approach known as

• Counsellor selling
• Total needs selling
• Planned selling
• Multiple products selling

Answer: b. Total needs selling

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

provided the insured

• 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. Presents satisfactory evidence of insurability

• Both endowment and term life insurance policies provide that
• No cash value is available to the policy owner during the term of the policy
• Renewals and conversion privileges are available
• A benefit will be paid at the end of the period of coverage if the person insured is then alive
• Insurance protection will be limited to a specific period

Answer: d. Insurance protection will be limited to a specific period

• A policy which permits the policyholder 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 know as policy.

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

Answer: c. Universal life

• Which of the following is the least important reason for requiring that the insurance agents

be licensed?

• To established and maintained high professional and ethical standards
• To protect the public
• To give the government adequate control over the conduct of agents
• To provide additional income to the government through licensed fees 1 / 2

Answer: d. To provide additional income to the government through licensed fees

• Indicate which of the following is not a function of an application for life insurance

policy.

• To give details pertaining to non-forfeiture options
• 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: a. To give details pertaining to non-forfeiture options

7. 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: c. Don't affect the loan or cash value of the policy

• Non-forfeiture provision are included in a whole life and endowment policies to assure

the policy owner that certain minimum policy benefits shall remain with him even under certain changed condition. Non-forfeiture values guarantee the policy owner that

• No death claim will be denied for any misstatement on the application
• Any guaranteed policy values will belong to the policy owner even if premium payments

are discounted.

• The face amount of the policy will remain the same even if the insured's health becomes

impaired

• The premium on the policy will remain the same even when another beneficiary is added to

the policy Answer: b. Any guaranteed policy values will belong to the policy owner even if premium payments are discounted.

• In certain situations a company may file interpleader actions with a Court of Law. This

remedy is used to

• Determined if the cause of the Insured's death was an excluded risk
• Decide conflicting claims on the same insurance proceeds
• Resolve the question of insurable interest
• Recommend the best settlement options of the beneficiary

Answer: b. Decide conflicting claims on the same insurance proceeds

• Purchasing a continuous-premium, whole life policy rather than a limit- ed-payment,

whole life policy gives the policy owner the advantage of

• Concentration of premium payments during the period of highest earnings
• Liberal risk selection procedures
• More insurance protection for the same annual premiums outlay
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