Finance License Practice ?'s
An insured falls and gets severely disabled. He has a Whole life policy. Is it possible for the policy to include a Waiver of Cost of insurance Rider?
No, this waiver is not included in a whole life policy.
When the owner of a participating Whole Life policy used the dividend to provide more life insurance coverage, which dividend option is used?
Paid-Up Additons
What is the minimum age to qualify for an adjuster's license?
18
Some deferred annuities include an adjustment that subjects the owner of the annuity to share in all loss or gain due to premature liquidation of bonds. This is found in?
A Market Value Adjusted Annuity.
A Vatical Settlement is a transaction outside the Life Insurance company where the owner sell the life insurance policy for which of the following?
A percentage of the Face Amount of the Policy.
Who would not be eligible for coverage under key person?
An owner of a shop
What does the application of contract of Adhesion mean?
Since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the insured.
Considering the principles of Liquidity, how would the policy-owner use today's cash value in a life insurance policy?
Use it for emergency expenses
Which insurance is investment based, has a level fixed premium, and a non-guaranteed cash value?
Variable Whole Life
Which would not trigger the payment of Accelerated Death Benefits?
Being permanently disabled.
In a Variable Life insurance policy, all Assets are held in the insurance company's general account except?
Cash Surrender Values
Which term refers to the nontaxable portion of each annuity benefit payment?
Cost Base
"Common Disaster" clause... [ both Insured and beneficiary die at the same time]
The Primary beneficiary died before the insured.
What is considered an unfair claims settlement practice?
Denying a claim without conducting a reasonable investigation.
An insured purchases a Non-Participating Whole Life policy, this policy does not include:
Dividends
An adjustable life policy can assume the from of?
Either term or permanent insurance
When a Whole Life policy is Surrendered for its nonforfeiture value, what is the automatic option?
Extended Term
The guaranteed insurability rider allows the owner to purchase additional amounts of life insurance without proof of insurability except
When purchasing a new home.
What is not true regarding ordinary(straight) life policy?
It does not have a guaranteed death benefit
A Jumping Juvenile policy is unique in that the death benefit automatically...
Increases at a predetermined age.
What is true regarding advertising that the insurance guaranteed association would ensure payment of benefits in the event of insurer insolvency?
It is illegal to mention the association in advertisement.
The Human Life Value approach to determining life insurance needs is based upon which idea?
Loss of the Breadwinner's income
Key Person insurance can provide protection for all of the following economic losses to a business except.
Pay the death benefit to the estate of the insured
If a life insurance company uses HIV testing as a part of the underwriting process, when must an applicant be notified of the procedure?
Prior to the performance of the test.
Not true of Annually renewable term insurance?
Proof of insurability must be provided each renewal/
Who indicates the person upon whose life the annuity income amount is determined?
The Annuitant
With Adjustable life , the owner cannot change?
The insure.