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FREE AND STUDY GAMES ABOUT PE C2 EXAM QUESTIONS
Actual Qs and Ans Expert-Verified Explanation
This Exam contains:
-Guarantee passing score -25 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation
Question 1: When is the earliest a policy may go into effect?
Answer:
When the application is signed and a check is given to the agent.Question 2: All advertisements pertaining to life insurance policies are the responsibility of the...
Answer:
Insurer.Question 3: Annually renewable term policies provide a level death benefit for a premium that...
Answer:
Increases annually.Question 4: An individual's tendency to be dishonest would be indicative of a...
Answer:
Moral hazard.
Question 5: What is the earliest legal age that a person can be licensed as an insurance producer?
Answer:
18.Question 6: The premium of a survivorship life policy compared with that of a joint life policy would be...
Answer:
Lower.Question 7: Which of the following is correct concerning the taxation of premiums in a key-person life policy?
Answer:
Premiums are not tax deductible as a business expense.
Question 8: When would a 20-pay whole life endow?
Answer:
When the insured reaches age 100.
Question 9: Which of the following is true about a class designation?
Answer:
Beneficiaries are not identified by name.Question 10: In an annuity, the accumulated money is converted into a stream of income during which time period?
Answer:
Annuitization period.Question 11: An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize?
Answer:
Viatical settlement.
Question 12: What is another name for interest- sensitive whole life insurance?
Answer:
Current assumption life.Question 13: Which of the following is a short-term annuity that limits the amount paid to a specific fixed period or until a specific fixed amount is liquidated?
Answer:
Annuity certain.Question 14: If an application for an annuity is gathered any way other than face-to-face, within how many days after the insurer receives the completed application must the applicant be given a Buyer's Guide?
Answer:
- business days.
Question 15: A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy...
Answer:
Required a premium increase each renewal.
Question 16: The term illustration in a life insurance policy refers to...
Answer:
A presentation of non-guaranteed elements of a policy.Question 17: What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident?
Answer:
Common Disaster Clause.Question 18: Which of the following policies is characterized by a provision where the premiums are lower in the early years of the policy and increase over time to a point where they become level for the remainder of the policy?
Answer:
Graded premium whole life.
Question 19: What document describes an insured's medical history, including diagnoses and treatments?
Answer:
Attending Physician's Statement.Question 20: In a group life insurance policy, the employer may select all of the following
EXCEPT...
Answer:
The beneficiary.Question 21: Which of the following best describes fixed-period settlement options?
Answer:
Both the principal and interest will be liquidated over a selected period of time.Question 22: A certificate of authority is NOT required for an insurance company that writes only...
Answer:
Surplus lines insurance.
Question 23: An absolute assignment is a...
Answer:
Transfer of all ownership rights in a policy.
Question 24: The death protection component of Universal Life is always...
Answer:
Annually Renewable Term.Question 25: Children's riders attached to whole life policies are usually issued as what type of insurance?
Answer:
Term.
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