100 PRACTICE EXAM QUESTIONS LIFE INSURANCE EXAM

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100 PRACTICE EXAM QUESTIONS LIFE INSURANCE EXAM

QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: In a qualified retirement plan, the yearly contributions to an employee's account

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are restricted to maximum levels set by the IRS Question 2: which of these statements describe a Modified Endowment Contract (MEC)?

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Exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract Question 3: On August 6, D submitted an application for a $50,000 Life Insurance Policy and did not pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The Life policy was delivered by the producer on August 20 and D explains what had recently taken place with the doctor. What action should the producer take?

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Collect initial premium along with signed health statement

Question 4: A(n) ______ ______ Life policy combines investment choices with a form of Term coverage?

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Variable Universal Question 5: As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of?

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Coercion- A creditor who requires a debtor to obtain insurance from a particular company or agent as a condition for a loan is guilty of coercion.Question 6: The most important factor to consider when determining whether to convert term

insurance at the insured's attained age or the insured's original age is:

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the cost Question 7: K owns a Whole Life policy. If K wants an increasing Death Benefit to protect against inflation, which Dividend Option should she chose?

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Paid-Up Additional Insurance

Question 8: What is required for an agent whose license has been revoked?

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wait at least five years before applying for a new license Question 9: How are surrender charges deducted in a life policy with a rear-end loaded provision?

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Deducted when the policy is discontinued Question 10: How long can a cash surrender value payment be deferred by the insurance company under the Nonforfeiture law?

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• months

Question 11: All of these statements about the Commissioner of insurance are true EXCEPT

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The Commissioner must be elected Question 12: Which of the following groups may NOT be insured by a group life insurance policy?

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Individuals who are related by blood Question 13: Who is liable when an insured suffers a loss on a policy sold by an agent through an insurer not authorized to conduct business in Texas?

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agent Question 14: What kind of life insurance product covers children under their parent's policy?

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Term rider- Family plan policies usually cover the family head with permanent insurance and the coverage on the spouse and children is term insurance in the form of a rider.Question 15: The payments on Q's annuity are no less than $250 quarterly. Which of the following annuities does Q own?

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Flexible installment deffered Question 16: Whole Life insurance policies are contractually guaranteed to provide each of the following EXCEPT

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partial withdrawal features beyond a surrender charge period Question 17: An insured may assign up to ____ of policy ownership under an individual life insurance policy

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100%

Question 18: What type of life insurance are credit policies issued as?

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Term.The type of insurance used is decreasing term, with the term matched to the length of the loan period (though usually limited to 10 years or less) and the decreasing insurance amount matched to the declining loan balance.Question 19: Which type of life insurance beneficiary requires his/her consent when a change of beneficiary is attempted by the policyowner?

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Irrevocable beneficiary Question 20: The Consideration clause of an insurance contact includes:

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the schedule and amount of premium payments Question 21: What is an organization that solicits insurance only to its members?

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fraternal benefit society Question 22: One becomes eligible for Social Security disability benefits after having been disabled for

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• months

Question 23: Which of these is NOT an example of doing insurance business?

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Selling shares of stock Question 24: The Automatic Premium Loan provision is designed to:

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avoid a policy lapse