Practice exam 8

If an insured me to states financial requirements and is approved to transact business in the state, it is considered to be

Authorized

Which of the following is not a term for the period of time during which the annuitant or the beneficiary receives income?

Depreciation period

The medical information bureau was created to protect

Insurance companies from adverse selection by high risk persons.

Which of the following is true of a children's rider, added to an insured's permanent life insurance policy

It is term coverage that is convertible to permanent insurance at or prior to the child reaching the maximum coverage age

On its advertisement, a company claims that it has funds and its possession that are in fact, not available for the payment of losses or claims. The company is guilty of.

Misrepresentation

A prospective insured receives a conditional receipt, but dies before the policy is issued. The insurer will.

Pay the policy proceeds only if it would have issued the policy

An employee is insured under her 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 an individual purchases, Insurance, what risk management technique is he or she practicing?

Transfer Insurance is a transfer of the risk of financial loss from a covered peril from the insured to the insurance company.

The dividend option in which the Policyowner uses dividends to purchase a term policy for one year is referred to as the

one-year term option