FREE AND STUDY GAMES ABOUT MI HEALTH LIFE ACCID

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FREE AND STUDY GAMES ABOUT MI HEALTH LIFE ACCID

EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -39 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: An insurers' ability to make unpredictable payouts to policy owners is called

Answer:

Liquidity Question 2: What is the corridor in relation to a universal life insurance policy?

Answer:

The gap between the total death benefit and the policy's cash value Question 3: Which type of multiple protection policy pays on the death of the last person?

Answer:

Survivorship life policy

Question 4: A partial surrender is allowed in which policy?

Answer:

Universal Life policies

Question 5: Index whole life insurance contains a security component that act as a...

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Hedge against inflation Question 6: a securities license is required for a life insurance to producer to sell

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Variable life insurance Question 7: 3 brothers who have a $100,000 "First to die" joint life insurance policy covering all

• of their lives. If Mike dies first the proceeds

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Will no longer provide insurance protection Question 8: Which of the following are n=the premium payments for a universal life policy not used for?

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Separate account investment Question 9: A policy owner may exercise which of these dividends options that uses the dividend to pay all or part of the next premium due?

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Reduction of premium dividends Question 10: The suicide clause of a life insurance policy states that if an insured commits suicide with in a stated period from policy inception, the insurer will only be liable for

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A return of premiums paid minus indebtedness and without interest.Question 11: Which type of insurance policy pays the face amount at the end of the period if the insurer is alive?

Answer:

Endowment policy

Question 12: All of these are valid options for an Adjustable Life Policy except

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A nonforfeiture option can be used to increase death benefits.Question 13: What type of life insurance are normally used for key employee indemnification?

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term, whole, universal Question 14: Life insurance policy which contains cash values that vary according to its investment performance of stacks is

Answer:

Variable whole life

Question 15: An example of risk sharing would be

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Doctors pooling their money to cover malpractice exposure Question 16: Ken is a producer that has obtained Consumer Information Reports under false pretense. Under FCRA what is the maximum penalty?

Answer:

$5,000

Question 17: A provision that allows a policy holder to withdraw a policy's cash value interest free is a(n)

Answer:

partial surrender

Question 18: Under a life insurance, what does insuring clause state?

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Insurer pay death benefits upon approved death Question 19: A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called a(n)

Answer:

payor rider

Question 20: Which type of clause describes " we have issued the policy in consideration of the representations in your application and payment of the first-term premium"

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Consideration clause Question 21: Under a Modified Endowment contract, what are likely tax consequences?

Answer:

Pre-death distribution will become taxable

Question 22: Why are dividends from a mutual insurer not subject to taxation?

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They are considered to be a form of premium Question 23: Pat owns a 20-year life policy with a paid-up dividends option. Which of the following statements are true?

Answer:

The policy may be paid up early by using policy dividends

Question 24: An insurers' claim settlement practices are regulated by

Answer:

State Insurance Department

Question 25: Which of the following is NOT part of an insurance contract?

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Certificate of Authority Question 26: Life insurance policy that contains a guarantee interest rate with the chance to earn a rate that is higher than the guaranteed rate?

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Universal Question 27: Which type of life insurance offers flexible premiums, flexible death benefits and the choice of now the cash value will be invested?

Answer:

Variable Universal policy