LIFE INSURANCE EXAM 90 QUESTIONS WITH COMPLETE SOLUTIONS

LIFE INSURANCE EXAM 90 QUESTIONS WITH COMPLETE SOLUTIONS
In general, what amount of personal life insurance premiums is deductible for federal income tax
purpose? - Correct Answer None
in a life insurance policy, the promise by the insurer to pay certain benefits is the: - Correct Answer
Insuring clause
W applies for life insurance on W's five year old child and submits the initial annual premium. The
producer issues W a receipt and says that coverage will be effective immediately if the application is
approved, because no medical examination is required. Which of the following types of receipts did
the producer issue? - Correct Answer Conditional
Which of the following annuities pays benefits based on units rather than specific dollar amounts? -
Correct Answer A variable annuity
which of the following term policies guarantees the insured the right to continue term coverage after
expiration of the initial policy period? - Correct Answer Renewable
An example of limited-pay life policy is - Correct Answer Life Paid-up at Age 65
which of the following items requires that an insurance application state that an investigative
consumer report may be obtained on the prospective insured? - Correct Answer Fair Credit Reporting
Act
A convertible term policy offers which of the following advantages? - Correct Answer the insured
does not have to provide evidence of insurability when requesting an conversion.
An insurance company may charge a higher total premium to an insured who pays a policy quarterly
rather than annually because the quarterly payment results in: - Correct Answer a reduction in the
company's interest earning and an increase in administrative expenses.
An underwriter's evaluation of information on a life insurance application is also known as - Correct
Answer risk classification