LIFE INSURANCE - EXAM QUEEN

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LIFE INSURANCE - EXAM QUEEN

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: If the insurance company is going to do an investigative interview when do they have to tell you?

Answer:

• to tell you
• to show you if you want a copy

Question 2: What policy covers debt owed if the insured dies?

Answer:

Credit Life

Question 3: If a policy can be renewed it is known as?

Answer:

Renewable keep getting insurance with evidence of insurability Question 4: Consumer reports cannot contain what information is life policy is less than

150,000?

Answer:

Bankruptcies more than 10 yrs old, Civil suits or convictions of crimes more than 7 years old.

Question 5: Variable Requires what licenses?

Answer:

Life and Securities

Question 6: What is the field underwriter

Answer:

the Agent - Agents job is the eyes and ears - gathering data that will determine how risky

Question 7: What is Single Premium whole life policy (SPWL)?

Answer:

Designed to provide a level death benefit to the insured's age of 100 in a one-time, lump-sum payment.The policy is completely paid-up and generates immediate cash.Question 8: Most term policies are Renewable and Convertible. What is a benefit to renewing or converting your policy?

Answer:

you can renew or get a permanent policy without evidence of insurability.

Question 9: What is the Application?

Answer:

main source of underwriting - under the agents eye - in blue or black ink.Question 10: If coverage for life insurance is high the insurer may request what types of medical exams?

Answer:

Paramedical report - Paramedic or registered nurse Attending Physician's Statement

Question 11: What is another name for an agent?

Answer:

field underwriter

Question 12: How many signatures do you need on the app

Answer:

• or 3 - Agent, Insured, owner

Question 13: what is paid-up additions ?

Answer:

dividends are used to purchase a single premium premium policy in addition to the face amount of the permanent policy. each additional premium will increase the death benefit of the original policy.Increase Death Benefit with it.

Question 14: What is the insurer's and insured's Consideration?

Answer:

Insurer - Promise to Pay Insured - Payment of premium and statements on the application

Question 15: Universal Life Insurance

Answer:

aka - flexible premium adjustable life - Has ability to increase the premium paid to later decrease it again.Can skip payments as long as there is enough cash value to cover the premiums missed. if not it will expire.

Question 16: What is annuity income amount based upon?

Answer:

Amount of premium paid or cash value accumulated frequency of payment interest rate annuitant's age and gender

Question 17: When can an agent use the illustrations of the insurer?

Answer:

When it has been approved Question 18: If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

Answer:

• days

Question 19: What is Interest Only Option Life Settlement?

Answer:

Insurance company Keeps it and the insurance company cuts her a check for the interest until you decide what to do with the money.Because it's interest it is taxed Question 20: Who gets a copy of the policy in a group contract? aka Master Policy

Answer:

The Group Sponsor aka Employer

Question 21: When you receive a Life Settlement what is taxed?

Answer:

Interest earned is taxed Principle balance is not taxed

Question 22: What is a viatical settlement?

Answer:

If you are dyeing you can sell your policy

Question 23: When can you use the Living Benefits Rider in a term policy?

Answer:

Cash out a term policy if you are Terminally Ill Permanent disabled Use it for a nursery home Medical procedure you need unless you die

Question 24: What is the rider Return of Premium in life insurance (ROP)?

Answer:

increasing term life insurance that pays an additional death benefit equal to amount of premiums paid.Paid if death occurs within a specified time or insured outlives the policy term.25%-50% more expensive Return is not taxable