FREE AND STUDY GAMES ABOUT STACK 2476860 EXAM

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FREE AND STUDY GAMES ABOUT STACK #2476860 EXAM

QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -170 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Which of the following statements describes an insurable interest?

Answer:

The policyowner must expect to suffer a loss when the insured dies or becomes disabled.Question 2: Which of the following is a type of insurance where an insurer transfers loss exposures from policies written for its insureds?

Answer:

Reinsurance

Question 3: Which of the following is a requirement of a contract?

Answer:

Parties involved must be competent, Contract must have a legal purpose, Offer and acceptance must be involved Not Equal consideration is required between the involved parties Question 4: Which of the following is a life insurance policy that does require a physical exam?

Answer:

Graded, Substandard, Noncancelable Not Non-medical

Question 5: Participating insurers allow their policyowners to

Answer:

share in any company earnings and receive a dividend

Question 6: Increasing term insurance death benefits increase by

Answer:

specific amounts or a percentage of the original face amount Question 7: A policy in which the ages of the insureds are "averaged" and a single premium is charged is known as

Answer:

joint life Question 8: Because an insurance contract has been prepared by an insurance company with no negotiation it is considered

Answer:

a contract of adhesion

Question 9: Adjustable life policies combine the following into a single plan

Answer:

term and permanent insurance

Question 10: What is a participating life insurance policy?

Answer:

Contract that allows the policyowner to receive a share of surplus in the form of policy dividends Question 11: Which of the following terms is used for the voluntary relinquishment of a known right?

Answer:

Waiver Question 12: Which of the following statements does describe an element of an insurable risk?

Answer:

The loss must be definite and measurable, The loss cannot be catastrophic, The loss exposures to be insured must be large Not The loss must not be due to chance.

Question 13: John and Mary have a handicapped child that is financially dependent upon them.The death of one of the parents would not be financially disastrous, however the death of both likely would be. Which policy would be best suited for them?

Answer:

Second-to-die policy Question 14: Which of the following would NOT be accomplished with the purchase of an insurance policy?

Answer:

Risk is eliminated Question 15: Which method of determining the financial value of a person's life is based on computing the current value of a person's future earnings?

Answer:

Human Life Value Approach Question 16: Which of the following types of life insurance combines a savings element along with a flexible premium option?

Answer:

Universal life Question 17: Explain the difference between what a general agent does as compared to a PPGA?

Answer:

PPGA's primarily sell. General agents primarily recruit, train, and manage

Question 18: An insurer is considered authorized if it

Answer:

is licensed or authorized by the state

Question 19: An accident is classified as which of the following?

Answer:

Peril

Question 20: For cash value accumulations to receive favorable tax treatment, a specific percentage of universal life policy premiums must be used to purchase

Answer:

death benefits Question 21: A life insurance policy that pays the face amount if the insured survives to a specified period of time is called

Answer:

endowment insurance Question 22: Bill decides to put aside a large amount of money from his life's savings to devote for taking care of his family's future financial needs in the event of his death. This treatment of risk can be described as

Answer:

Retention

Question 23: A universal life policyowner may do all of the following

Answer:

increase premium payments within limits of the insurance company and statutory law, change the frequency of premium payment, make partial withdrawals from the cash value account Not increase the amount at stated intervals without evidence of insurability Question 24: Bo's bank approves him for a 100K loan to start a new business. What type of insurance will his bank require him to have?

Answer:

Credit life insurance

Question 25: Which type of risk is gambling?

Answer:

Speculative risk Question 26: Which of the following is true regarding a family policy that covers children?

Answer:

Additional children can be added at no cost, Adopted children can be covered, Term insurance is used for the children's rider Not Conversion of child's coverage to permanent insurance requires evidence of insurability