FREE AND STUDY GAMES ABOUT LIFE EXAM QUESTIONS

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FREE AND STUDY GAMES ABOUT LIFE EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -40 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: An insurer invests the money it receives from premiums paid by its insureds.Which of the following is TRUE regarding the interest earned on these investments?

Answer:

CIt is used to lower premiums.

Question 2: All of the following are true of key person insurance

Answer:

The key employee is the insured.

CThere is no limitation on the number of key employee plans in force at any one time.DThe employer is the owner, payor and beneficiary of the policy.Question 3: A Universal Life insurance policy has two types of interest rate that are called

Answer:

Guaranteed and Current Question 4: An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?

Answer:

The insured may choose to convert to term or permanent individual coverage.

Question 5: Which of the following individuals must have insurable interest in the insured?

Answer:

Policyowner

Question 6: When would a 20-pay whole life policy endow?

Answer:

AWhen the insured reaches age 100 Question 7: All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?

Answer:

Lower Question 8: A producer agent must do all of the following when delivering a new policy to the insured EXCEPT

Answer:

Disclose commissions earned from the sale of the policy.Question 9: Which of the following would be the beneficiary in credit life insurance?

Answer:

Creditor Question 10: An applicant who receives a preferred risk classification qualifies for

Answer:

ALower premiums than a person who receives a standard risk.Question 11: An insured buys a 5-year level premium term policy with a face amount of $10,000.The policy also contains renewability and convertibility options. When the insured renews the policy in 5 years, what will happen to the premium?

Answer:

It will increase because the insured will be 5 years older than when the policy was originally purchased.Question 12: Which of the following information about the applicant is NOT included on Part 1 of the application for insurance?

Answer:

Medical background

Question 13: When must insurable interest exist in a life insurance policy?

Answer:

At the time of application

Question 14: The mode of premium payment

Answer:

Is defined as the frequency and the amount of the premium payment.Question 15: A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?

Answer:

DLevel term

Question 16: Which of the following is NOT allowed in credit life insurance?

A

Answer:

Creditor requiring that a debtor buys insurance from a certain insurer Question 17: Upon policy delivery, the producer may be required to obtain any of the following

Answer:

APayment of premium.BDelivery receipt.

DStatement of good health.Question 18: Which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement, and inflation?

Answer:

Human life value approach Question 19: Which of the following is called a "second-to-die" policy?

Answer:

Survivorship life

Question 20: The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

Answer:

f the application date Question 21: The insurer discovered that one of the applicants for life insurance missed a couple of questions on the application. What should the insurer do with the application?

Answer:

Return to the applicant for completion

Question 22: Both Universal Life and Variable Universal Life have a

Answer:

AFlexible premium.

Question 23: All of the following are true about variable products EXCEPT

Answer:

The premiums are invested in the insurer's general account.Question 24: Which of the following is the best reason to purchase life insurance rather than annuities?

Answer:

To create an estate Question 25: For what reason may a life insurance producer backdate a life insurance policy?

Answer:

To avoid an increase in premium rate for the insured Question 26: Which of the following statements is NOT true concerning insurable interest as it applies to life insurance?

Answer:

A debtor has an insurable interest in the life of a lender.