Life Insurance Exam

An agent analyzed Jason's life insurance needs taking into account Jason's salary, his age, his expected retirement age and depreciation of the dollar over time. The agent was using A. The Human Needs Approach to life insurance need B. The Needs Approach to life insurance need C. The Analytical Approach to life insurance need D. The Planning Approach to life insurance need

A.

Maria becomes injured in a car accident which occurred because she answered her cell phone. This is an example of which kind of hazard? A. Morale B. Moral C. Physical D. Accidental

A.

The form of assignment where all rights are transferred to another party is known as: A. Absolute B. Ordinary C. Collateral D. Extended

A.

Which of the following Settlement Options provides for payments to be made in regular installments of a specified amount until the principal and interest are exhausted? A. Fixed Amount B. Fixed period C. Interest Only D. Life income

A. Fixed Amount

The mis-statement of age clause (provision) in a life insurance contract allows the insurer to _______ if it finds that the age of the insured has been mis-stated. A. Modify the amount payable under the policy to the amount the premiums would have purchased at the insured's correct age B. Surcharge the policy for each year it was in force until the premium is adequate to pay the face amount C. Deny any and all claims with a full refund of all premiums paid D. Any of the choices listed- it is the option of the insurer

A. Modify the amount payable under the policy to the amount the premiums would have purchased at the insured's correct age

Dividends and dividend options are extended to the policyowner as a return of part of the premium collected, after mortality losses, interest earnings and expenses have been determined. Which of the following policies/contracts are entitles to these dividends? A. Participating policies B. Nonparticipating policies Rebating approved contracts D. Stock option endorsements

A. Participating policies

Consideration in Life Insurance is the application and premium offered by the applicant and the Insurer's: A. Promises made in the contract B. Bond that must be filed with its home state Department of Insurance C. Mandatory Reserve Surplus D. Dividend payments based on investment experience

A. Promises made in the contract

Which of the following qualified retirement plan was developed primarily for self-employed businesses? A. Defined Contribution B. HR 10 Plan C. SIMPLE Plan D. 401K

B

Private pension plans purchased by individuals, which may be tax deductible to the individual under ERISA are which of the following? A. Individual Life Insurance Policies B. Individual Retirement Accounts (IRAs) C. NCC 1701 D. Split Dollar Policies

B . IRAs

A/an ___ is a statement made by the applicant as or before the time the life insurance contract is formed, which is believed to be true: A. Warranty B. Representation C. Assumption D. All of the above

B.

All of the following are true of non-forfeiture options except: A. They are all available only in policies with Cash Value B. They are found in most term insurance policies C. They can provide an Extended Term Benefit D. The policy can remain in force life with a reduced death benefits

B.

Who would receive the cv if the annuitant were to die during the Pay-in Period? A. The owner B. The Beneficiary C. The Estate of the Annuitant D. The Spouse of the Annuitant

B.

An insurance policy becomes incontestable after this period of time: A. 1 year B. 2 years C. 30 days D. 90 days

B. 2 years

To qualify for a wavier of premium benefit, an insured's disability must be permanent total and occur before a stated age. The disability is considered permanent after the insured has been totally disabled continuously for at least: A. 1 month B. 6 months C. 1 year D. 2 years

B. 6 months

After a Cybersecurity event has occured, an insurer must report the events to the N.Y. State Department of Financial Services within how many hours? A. 36 hours B. 72 hours C. 96 hours D. They just have to report it

B. 72 hours

When money is received at the time of application, a certain type of receipt may be issued. Known as a ____, this type of premium receipt allows converge to become effective on the day of application as long as the applicant is insurable according to the insurer's underwriting standards A. Approval B. Conditional Insurability Receipt C. Binding D. All of the choices above

B. Conditional Insurability Receipt

Loans taken on life insurance policies: A. Must be repaid upon demand B. Don't have to be repaid by the insured, but reduce the death benefit C. Adhere to the current prime lending rate D. Immediately voids the policy, for this concept is against the principle of insurance

B. Don't have to be repaid by the insured, but reduce the death benefit

The ______ allows insurance to remain in force following the due date of a premium when no such premium has been received either by the home office of the insurer or by an agent authorized to receive premiums. A. Insurable interest clause B. Grace period provision C. Protection of beneficiaries from creditors provision D. Warranty Statement

B. Grace Period Provision

The _______ Beneficiary is entitled to the benefits of the policy if the Primary Beneficiary is not living at the time of death of the insured. A. Primary B. Secondary C. Tertiary D. Subordinate

B. Secondary

When a life producer acting as a broker aids the insured in completing an application he is said to be acting for: A. Himself B. The insured C. The insurer D. Home offices's underwriter

B. The insured

In a Universal Policy, Option A has a Corridor which raises the death benefit to avoid A. Incident of Ownership B. Lapsing the policy C. Losing tax advantages D. Section 1035 classification

C.

What describes the specific information about a policy? A. Buyer's guide B. Agent's Report C. Policy Summary D. MIB Report

C.

When Susan was hired, she was not eligible to join the Group Insurance plan for 90 days. This is an example of A. The eligibility period B. The risk period C. The probationary period D. The introductory period

C.

Which of the following is NOT fundable by an annuity? A. A person's retirement B. Estate liquidation C. Premature death D. Cash accumulation

C.

Which of the following may contribute to proof of death for the purpose of receiving the benefit from a life insurance policy? A. Insured's will B. Obituary C. Death Certificate D. All of the above

C.

Settlement options assure the policy owner and his beneficiaries of a planned income arrangement on a guaranteed basis. The settlement option that provides for proceeds to be paid in equal monthly payments, liquidating principal with interest, over a specified period of years, is the ____ option. A. Interest B. Fixed Amount C. Fixed Period D. Lump Sum

C. Fixed Period

The insurer pays a face amount to the insured's beneficiary whenever the insured's death may occur up to age 100, under which of the following policies: A. Annuity B. Endowment C. Whole Life D. Term

C. Whole Life

Which of the following is NOT a use for cash value in a permanent policy? A. To supplement retirement income B. To take loans from C. Living benefit D. To help in underwriting of insured

D

A 12 year old child applies for a life insurance policy. The applicant is healthy and excels in sports. What risk classification would the applicant receive? A. Preferred B. Standard C. Substandard D. Decline

D.

All of the following could own group life insurance except: A. An alumni group B. A union C. An employer for his employees D. A group needing low cost life insurance

D.

Generally, IRA rollovers must be completed within ___ days from the time the $ is taken out of the first plan A. 10 B. 30 C. 45 D. 60

D.

Leslie applied for insurance without paying the premium. The policy was accepted. When the agent delivers the policy she should pick up: A. The due premiums B. Nothing C. A signed good health statement D. The due premiums and a signed good health statement

D.

The failure to disclose known facts is A. misrepresentation B. Material Misrepresentation C. Estoppel D. Concealment

D.

William has chosen to receive the payout from his brother's life insurance policy in such a way that he will have an income for life, regardless of how long he lives. William selected the A. Interest Only Option b. Fixed Amount Option C. Fixed period Option D. Life Income Option

D.

If a wife owns a $100,000 life insurance policy on her husband (husband is the insured) naming their children as beneficiaries, which of the following persons must sign the application? A. Wife, husband and children B. Husband and children C. Agent and husband D. Agent, wife and husband

D. Agent, wife and husband

To reinstate a lapsed life insurance policy, which of the following must be submitted to the insurer? A. Only the premium due B.The overdue premiums and interest on the overdue premiums and a collateral assignment C. Evidence of good health, overdue premiums and interest on overdue premiums and a collateral assignment D. Evidence of good health, overdue premiums and interest on overdue premiums, and a reinstatement application

D. Evidence of good health, overdue premiums and interest on overdue premiums, and a reinstatement application

Which Standard Provision of a life insurance policy allows the insurer to deny payment of claims or cancel a policy during the first two year if fraudulent statements or material mis-statements are discovered in the application? A. Double Indemnity Clause B. Protection of Benefits from Creditors Clause C. Guaranteed Insurability Clause D. Incontestability Clause

D. Incontestability Clause

The purpose of the "Entire Contract" provision is to assure the policy owner which of the following: A. The provision of the company by-laws pertaining to the policy can be examined by appointment at home office B. That the application does not become part of the contract, rendering any false statements inadmissible in court disputes C. That dividends are guaranteed through the entire contract D. That the policy itself includes the complete text of the policy owner's application with the insurer

D. That the policy itself includes the complete text of the policy owner's application with the insurer

Scott, age 30, plans to retire at age 50. He would like to purchase an annuity that would pay income to him from his retirement age til 65, when Social Security would be available. Which annuity should he purchased? A. Variable B. immediate C. Life D. A deferred with fixed period

D.`

Howard fills out an application for a life insurance policy to insure his own life and for which he will pay the premiums. Howard would be considered all of the following EXCEPT A. Policy owner B. Applicant C. Beneficiary D. Insured

c.