FREE INSURANCE AND STUDY GAMES ABOUT MY

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FREE INSURANCE AND STUDY GAMES ABOUT MY

POLICY/PROVISIONS EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -128 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: Ms. Swanson has a $75,000 mortgage and assigns a $150,000 policy. The assignee and the mortgagee received a check payable to them jointly. What is this agreement called?

Answer:

collateral assignment

The collateral assignment is used when a check is to be paid jointly to both parties Question 2: true or false the entire contract provision makes it clear that the contract is a three party agreement among the insured, the insurance company and the agent

Answer:

false Question 3: Premium payments for life insurance are made in advance. Typically they are paid to the insurer's home office or to the agent. The premium payment mode defines the timing of the payments. Usually the payment mode with the best economy is

Answer:

annually

Question 4: T or F

Arnold has purchased an Adjustable Life plan. His agent has told him that he may pay varying premiums each year, Pay a minimum amount as long as he funds the mortality cost and Pay a higher premium if he wants to build cash faster

Answer:

true Question 5: What type of policy has premiums paid to age 100, and upon age 100 pays the face amount as an endowment

Answer:

straight whole life

Question 6: can the face value be changed in a joint life policy

Answer:

no

Question 7: t or f

A universal life plan differs from a whole life plan in the following way:

A whole life plan displays a detailed list of all mortality, expense and interest payments in the premium calculation

Answer:

false

Question 8: An agent wants to qualify to sell variable life plans. He must

Answer:

Secure a license from FINRA as well as the state Question 9: Angelina purchased a policy with a face value of $100,000. She died 10 years later and the policy paid a death benefit of $50,000. Why

Answer:

her policy was a decreasing term Question 10: When Joshua took out a life policy, he overstated his age. What will the insurer's course of action be if it discovers the misstatement after the insured dies?

Answer:

Pay an amount equivalent to that which the premium would have purchased at the correct age

Question 11: If you decide to use the acclrtd benefit of a life policy, whats responsibility of the insurer?Provide an illstrtn showing effect on the death benefit Notify that their eligibility for Medicaid could be affected.Both or neigher of the above

Answer:

both Question 12: When the policyholder sells, gives or pledges a policy as collateral, it is called -

Incontestability Consideration Settlement Assignment

Answer:

assignment Question 13: Mrs. Olsen worries that her health may deteriorate in the future. She wants to provide adequate coverage for herself and her family. Which rider should she consider for her life policy?

Answer:

guaranteed insurability rider

Question 14: characteristics of an industrial policy

Answer:

Industrial policies are usually less flexible and have higher premiums than ordinary policies.Question 15: policy was not surrendered for its cash value. Under what conditions can the policy be reinstated?Proof of insrbility may be required All back premiums need to be paid It has not been more than three years since the policy lapsed All of the above

Answer:

all of the above

Question 16: A variable life plan must be a type of universal life because

Answer:

The accumulation accounts must be separated from general company assets Question 17: in what situation does the policy owner not have complete control of the policy?

Answer:

If an irrevocable beneficiary has been named on the policy Question 18: is it true concerning Interest Sensitive Whole Life (ISWL): The death benefit is guaranteed as long as premiums are paid Policy loans are available The cash account accumulates tax free inside the policy

Answer:

yes, true Question 19: He has a dsblty income rider on his life policy. With a dsblty income rider - The insurer pays him a specified amount each month to the insured The $ continues for the duration of the dsblty There is a waiting period before bnfts are paid all

Answer:

all of the above

Question 20: what is a corridor

Answer:

an additional amount of pure life insurance in the form of decreasing term, which is used to increase the policy's death benefit so the policy does not exceed a certain maximum ratio of cash value to death benefit set by the IRS Question 21: All statements are true about irrevocable beneficiaries EXCEPT: The beneficiary cannot be changed without written consent The policyowner makes premium payments.The policyowner retains the right to borrow against the policy All of the above

Answer:

The policyowner retains the right to borrow against the policy