Life Exam test questions

The accelerated benefits provision will provide for an early payment of the death benefit when the insured...

Becomes terminally ill; The accelerated benefits provision allows the owner to be advanced a significant portion of the death benefit when the insured is terminally ill.

The provision which states that both the policy and a copy of the application from the contract between the policy owner and then sure is called the?

Entire contract; the policy, together with the detached application, constitutes the entire contract. This provision limits the use of evidence other than the contract and the attached application in a test of the contracts validity. This is a mandatory provision in life insurance.

If the policy owner, then Sheard, and the beneficiary under life insurance policy or three different people, who has ownership rights,

Policyowner; only the policy owner has the ownership rights under the policy, and not insured or beneficiary.

Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy?

Premiums are not tax-deductible as business expense; The business cannot take a tax deduction for the expense of the premium. However, if the key employee dies, the benefits pay to the business are usually receive tax free

In Insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element is this describe?

Unilateral; in a unilateral contract, the insured is not legally bound to do anything. The insurer, however, must pay losses covered by the policy.

what is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident?

Common Disaster Clause - The C.D.C provision states that when an insured and beneficiary die in a common accident, and the beneficiary dies before or within a specific period of time the insured, the insurer will process as if the insured outlived the beneficiary.

A partnership buy-sell agreement in which each partner purchases insurance on the life of each of the other partners is called a...

Cross purchase plan; in a cross-purchase plan each partner involved purchases insurance on the life of each of the other partners. With a cross-purchase plan, each partner is the owner, premium payer, and beneficiary of the life insurance on the lives of the other partners. The amount of the life insurance is equal to each partners share of the purchase price of the deceased partner's interest in the business.

If a consumer request additional information concerning an investigative consumer report how long does ensure or reporting agency have to comply?

Five days; consumers must be advised that they have a right to request additional information concerning investigative consumer reports, and the insurer or reporting agency has five days to provide the consumer with additional information.

Annually renewable term policies provide a level death benefit for a premium that...

Increases annually; Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured.

Uninsured will be allowed to reactivate her lapsed life insurance policy of action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this?

Reinstatement provision - A lapsed policy may be reinstated within 3 years by paying back premiums, with interest, and proving insurability.

Children's riders attached to whole life policies are usually issued as what type of insurance?

Term - children's term riders provide term insurance with coverage expiring when the minor reaches a certain age

An employee is insured under the employers group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?

The insured may choose to convert to term or permanent individual coverage. - when group coverage is converted to an individual policy, then sure will determine the type of coverage, usually permanent insurance.

An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policies cash value. There's a limit for a with drawl in the insure charges a fee. What type of policy does the insured most likely have?

Universal life; universal life policies allow the policyholders to withdraw a limited portion of the policies cash value. Each with drawl, however, is usually charged, and the amount and frequency of with drawls are usually limited.

The writer in a whole life policy that allows the company to forgo collecting the premiums if the insured is disabled...

Waiver of premium; Waiver of premium rider waives the premium if The insured owner has been totally disabled for a predetermined period. The payer benefit provides for an owner other than the insured and the waiver of cost of insurance is found in universal life.

An individual applied for an insurance policy and pay the initial premium. Then sure issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policies effective date?

The date of medical exam; if the company acknowledges receipt of the premium with a conditional receipt the policy is in effect on the date of the application or the date of medical exam (which ever is later), provided that the applicant is found insurable at the rate applied for.

A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then...

The benefit is received tax free; should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person.

And insured has had A life insurance policy that he purchased three years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?

Pay a reduced death benefit. (The incontestability clause prevents and ensure from denying the claim due to statements in an application after the policy has been in force for two years. However it does not apply to statements relating to age, sex and identity.

When will the 20-Pay whole life policy endow?

When the insured reaches age 100 - A limited-pay whole life policy, just like straight life, endows for the face amount if the insured lives to age 100. The premium is, however, completely paid off in 20 years.