LIFE INSURANCE EXAM QUESTIONS

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LIFE INSURANCE EXAM QUESTIONS

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

-Format: Multiple-choice / Flashcard

Question 1: Owner's Rights

Answer:

clause that states that the policyownder possesses all contractual rights in the policy while the insured is still living. This includes the right to name a beneficiary, borrow against the cash value or select a dividend option

Question 2: Individual Life

Answer:

includes many types of temporary and permanent insurance protection plans written on individuals with premiums paid monthly quarterly semiannually or annually

Question 3: Medical Information and Consumer Reports

Answer:

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Question 4: Level, Decreasing, and Increasing Term

Answer:

level- the premium and death benefit remain level during the term of coverage Decreasing- the premium remains level during the term of coverage, but the death benefit decreases with time

Question 5: Fair Credit Reporting Act

Answer:

federal law giving consumers the right to view and correct their credit information

Question 6: Waiver of Premium and Waiver of Premium with Disability Income

Answer:

A clause in an insurance policy that waives the policyholder's obligation to pay any further premiums should he or she become seriously ill or disabled. A waiver of premium allows people to benefit from an insurance policy, even when they cannot work.

Question 7: Commissions

Answer:

the act of granting certain powers or the authority to carry out a particular task or duty

Question 8: Replacement

Answer:

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Question 9: Warranties and Representations

Answer:

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Question 10: Variable Universal Life

Answer:

A combination of the features of variable life insurance and universal life insurance under the same contract. Benefits are variable based on the value of equity investments, and premiums and benefits are adjustable at the option of the policyholder.

Question 11: Nonforfeiture Options

Answer:

Alternative ways the cash value may be used if the policy is surrendered. Has to be whole-life or have some sort of cash/ savings element.

Question 12: Consideration

Answer:

a clause that states that the policyowner promises to pay all premiums due under the policy and that all representations made on the application are true

Question 13: Cost of Living

Answer:

average cost of basic necessities of life (as food and shelter and clothing)

Question 14: Types of Licenses

Answer:

Producer Temporary Nonresident

Question 15: Agent Conduct and Insurance Marketing Standards

Answer:

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Question 16: Minor Beneficiaries

Answer:

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Question 17: Maintenance and Duration of License

Answer:

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Question 18: Third-Party Ownership

Answer:

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Question 19: Retirement Plans

Answer:

Tax-Qualified Plans Nonqualified Plans

Question 20: Group Life

Answer:

life insurance provided for members for a group

Question 21: Policy Exclusions

Answer:

to exclude death caused by anoninsurable risk:

1) suicide (2 yrs), 2) war, 3) aviation (regular duties), 4) being private pilot

Question 22: Automatic Premium Loan

Answer:

A provision in cash-value life insurance policies that allows any premium not paid by the end of the grace period to be paid automatically with a policy loan if sufficient cash value or dividends have accumulated.

Question 23: Traditional Whole Life Products

Answer:

Ordinary straight life Limited-Pay Single-Premium Life Adjustable Life

Question 24: Revocable and Irrevocable

Answer:

change and cant change

Question 25: Accelerated Death Benefits

Answer:

living riders allow the early payment of some portion of the death benefit if the insured is diagnosed as having a specified catastrophic illness, is terminally ill, or permanently confined to a long-term care facility. The maximum benefit is usually specified as a percentage of the face amount of insurance, usually 50%, but it is legal for the insurer to pay up to 100% of the death benefits before the insured dies. There may also be a dollar limit, such as $100,000. The face amount of insurance is reduced after the payments, as well as the premium for the remaining policy and its cash value