TRADITIONAL EXAM REVIEWER

8.In practice, most claims for the death benefits of life insurance policies are a. Paid promptly as soon as properly completed claim forms are received by the company b. Investigated thoroughly for evidence or misrepresentation or fraud before payment is made c. Settled by interpleader proceedings d. Paid on the first policy anniversary after the death of the insured

a. Paid promptly as soon as properly completed claim forms are received by the company

1. In a case where the premium has not been paid and the cash values has been exhausted, the policy can still avail of the grace period.

FALSE

4. A policy is still in force for the full face amount and will remain in force for a further period of four years and 118 days, without the payment of any premiums has availed of paid up insurance option

FALSE

7. In a group insurance it is assumed that every member of the group is insurable, provided that every member of the group is working a minimum number of (usually 50 hours) each week

FALSE

8. An endowment at age 65 policy with premium payable for a limited period of 20 years pays the full amount after 20 years.

FALSE

9. In most life insurance applications, the largest amount of information requested is data which identifies the applicant.

FALSE

47. A yearly renewable term life insurance policy generally specifies that a. Premium shall increase every time the policy is renewed b. Cash values will increase for as long as the policy is in force c. Evidence of insurability shall be required every renewal d. The policyowner may renew the policy only once

a. Premium shall increase every time the policy is renewed

10. A policy which permits the policyholder to vary the level of premiums, the sum insured and has its cash values dependent upon the investment performance and the level of premium paid is known as a. Participating whole life policy b. Participating endowment c. Universal life d. None of the above

c. Universal life

22.The type of life insurance where the insured pays a nixed premium every year until he dies is called a. Endowment policy b. Term Insurance c. Whole Life d. Limited Payment Policy

c. Whole Life

10. A policy is not rendered void by reason of misstatement of the assured's death.

TRUE

2. According to the law of large numbers, events which happen seemingly by chance will actually be bound to follow a predictable pattern, if enough such happenings are observed.

TRUE

3. Anti-selection occurs when persons in poor health wish to buy insurance.

TRUE

5. In the case of misstatement of age, the amount of insurance is adjusted to the amount which the premium paid at the correct age would have purchased.

TRUE

6. A policy that provides guaranteed cash values plus extra annual distributions and pays the insured after a specified time is known as a participating endowment.

TRUE

15.Which of the following statements is false? a. Agents with persistent business seldom stay long with one company b. When a policy lapses, the agent loses a valuable source of prospect c. when a policy lapses, the agent loses all future commissions on renewal premiums d. Too many lapsed policies can cause an agent's agreement to be cancelled

a. Agents with persistent business seldom stay long with one company

31. Which of the following does not have a legitimate insurable interest? a. An individual on the life of his mistress b. An individual on his own life c. An individual on the life of his spouse d. A finance company on the life of its borrower

a. An individual on the life of his mistress

33. Which of the following statements regarding insurance premiums is false? a. Cash is required for all premiums paid in the grace period b. A premium is the legal consideration needed to effectuate a life insurance policy c. The grace period is usually 31 days d. Premiums which are paid quarterly or semi-annually are higher than those paid annually

a. Cash is required for all premiums paid in the grace period

7.Life insurance policy loans are limited to, an amount which with interest will not exceed the a. Cash value of the policy b. Total premiums paid c. Net amount of risk d. Present value of future premiums

a. Cash value of the policy

6. An insurance company generally has the right to rescind a life insurance policy if a. Company discovers at any time that the policy owner was actually a minor at the time of application b. Insured person intentionally kills himself during the suicide exclusion period specified in the policy c. Insured person is killed in military action during the contestable period of the policy d. Company discovers during the contestable period that the application contains a material statement.

a. Company discovers at any time that the policy owner was actually a minor at the time of application

48. Which statement is false when the owner borrows on a policy? a. Dividend will be reduced by the amount of the current interest b. The proceeds of the policy will be reduced by the amount of unpaid loan plus interest, if insured dies c. The policy will lapse if, after reasonable notice the indebtedness exceeds the cash value d. If a large loan is taken after the policy has been in force for some years, the interest cost may exceed the premium

a. Dividend will be reduced by the amount of the current interest

15. Life insurance companies make use of the laws of probability in order to a. Estimate future death rates among members of a given group b. Predict when an individual insured will die c. Develop statistics of past deaths among the general population d. Determine the experienced death rate among the insured persons

a. Estimate future death rates among members of a given group

20. Name the provision in a permanent life insurance policy under which premiums are discontinued, full insurance will be maintained for a specified period: a. Extended term insurance b. Paid-up insurance additions c. Life income option pension d. Reduced paid-up insurance

a. Extended term insurance

45. Under an endowment policy, if the person whose life is insured survives to the end of the period stated in the policy, the a. Face amount of the policy will be paid b. The extended term insurance option will go into effect c. Policy will terminate without value d. Policy will automatically be converted to paid-up whole policy

a. Face amount of the policy will be paid

18.Life insurance companies practice risk selection primarily to a. Guard against anti-selection b. Determine policy reserve amount c. Gather and test mortality statistics d. Establish dividend rates on participating policies

a. Guard against anti-selection

39. If the interest on a policy loan is not paid at the policy anniversary the insurance company may a. Increase the present loan by the interest b. Terminate the contract c. Refuse to grant future additional loan d. Demand full settlement of the loan

a. Increase the present loan by the interest

9. Limited payment life policies are called such because those policies a. Limit the period during which the premiums are payable b. Shorten the period when the beneficiaries may be paid c. Limit the number of beneficiaries thereby minimizing problems of paying too many people d. Limit the conditions under which the policies are payable

a. Limit the period during which the premiums are payable

10. In life insurance, the term "substandard rates" generally is used to refer to a. Premiums charged to persons who are considered to be higher-than-average risk categories b. Premiums charged for policies with low amounts c. Mortality rates that are lower than those expected by the company according to its mortality table d. Mortality rates that are lower than the rates suggested by the regulatory authorities

a. Premiums charged to persons who are considered to be higher-than-average risk categories

23.A DEBTOR took an insurance policy designating the creditor as his beneficiary, if the debt is already paid when the debtor dies, which of the following statements is CORRECT? a. Proceeds of the insurance will go to the estate of the insured b. No one can claim the proceeds of the insurance c. Proceeds of the insurance will go to the creditor d. Proceeds of the insurance will go to the heirs

a. Proceeds of the insurance will go to the estate of the insured

4.In a creditor-debtor relationship where the CREDITOR insures the life of the DEBTOR, if the debtwas already paid when the debtor dies, which of the following statements is CORRECT? a. Proceeds of the insurance will go to the estate of the insured b. No one is entitled to the proceeds of the insurance c. Proceeds of the insurance will go to the creditor d. Proceeds of the insurance will go to the heirs of the debtor

a. Proceeds of the insurance will go to the estate of the insured

20.Participating life insurance policies are policies which a. Provide for the distribution of dividends to the policy owner b. Develop profit which' must be paid to stockholders c. Permit beneficiaries to exercise certain ownership rights during the lifetime of the insured d. Allow variation in the wording of certain provisions

a. Provide for the distribution of dividends to the policy owner

16. In the case of renewable term insurance, the policy owner may a. Renew the coverage based on a higher premium b. Change the life insured at renewal date c. Renew providing the insurance company agrees to continue coverage d. Renew at the same premium for further period of years

a. Renew the coverage based on a higher premium

50. All of the following term policies can be sold as a basic policy contract except a. Six-months interim term b. Decreasing term c. Ten-year term d. Yearly renewable term

a. Six-months interim term

22. The extent of medical evidence required is determined by a. The age of the applicant and the proposed sum to be insured b. Occupation of the applicant c. Financial condition of the applicant d. Date of the last medical examination

a. The age of the applicant and the proposed sum to be insured

43. If the person whose life is insured dies during the grace period and the premiums was not paid, the amount that the insurance company will pay to the beneficiary is usually the a. The face amount of the policy minus the unpaid premium b. Cash surrender value of the policy minus the unpaid premium c. Full face amount of the policy d. Total premiums paid up to the data of birth plus interest

a. The face amount of the policy minus the unpaid premium

35.Insured designated his common law wife as beneficiary of his life insurance policy. The insured died. Both the common law wife and the legal wife claimed the proceeds. Who is entitled to the insurance proceeds? a. The proceeds of the life insurance will go to the estate of the insured b. The proceeds of the life insurance will go to the estate of the beneficiary c. Common law wife can claim the insurance proceeds d. Legal wife can claim the insurance proceeds

a. The proceeds of the life insurance will go to the estate of the insured

2. Indicate which of the following is not a function of an application for life insurance policy. a. To give details pertaining to non-forfeiture options b. To furnish information on which the contract of life insurance may be written c. To furnish initial information as to insurability d. To convey to the company the desire of the applicant to obtain insurance

a. To give details pertaining to non-forfeiture options

32. The basic coverage provided by the life insurance policies may be supplemented by a separate provision that provides coverage for accidental amounts or of a different nature. Collectively these provisions are known as a. riders b. deposit privileges c. dividends d. assignment

a. riders

3. A father has his present life insurance payable to his estate and because he has now retired he wants to pass the policy on to his son who will assume the premium payments. Which of the following will he have to appoint his son to achieve his desire and protect the son from Estate Tax Liability? a. Irrevocable primary beneficiary b. Absolute assignee c. Irrevocable secondary beneficiary d. Revocable primary beneficiary

b. Absolute assignee

12.Life insurance contributes directly to the welfare and progress of the country by a. Encouraging provision for the future b. All of the above c. Accumulating capital for investment in commerce and industry d. Partially relieving the community of the care of dependents

b. All of the above

2.Which of the following statements is/are CORRECT with regards to the definition of "accident"? I. Accident is an event which happens by chance or fortuitously II. Accident must happen without intention or design and which is unexpected, unusual and unforeseen III. Accident must be sudden and without fault

b. All of the above

29.A hazardous occupation could be defined as a. An occupation the duties of which expose the insured to a degree of sustaining injury b. All of the above c. An occupation which exposes the insured to social hazards d. An occupation in unhealthy working conditions exposing the insured to elements which can cause sickness

b. All of the above

49. All of the following are Standard Provision of a life insurance policy except: a. A grace period clause b. An entire contract clause c. An automatic premium loan clause d. A misstatement of age clause

b. An entire contract clause

27. Non-forfeiture provisions are included in whole life and endowment policies to assure the policyowner that certain minimum policy benefits shall remain with him even under certain changed conditions. Non-forfeiture values guarantee to the policyowner that a. No death claim will be denied for any misstatement on the application b. Any guaranteed policy values will belong to the policy owner even if premium payments are discounted c. The face amount of the policy will remain the same even if the insured's health becomes impaired d. The premium on the policy will remain the same even when another beneficiary is added to the policy

b. Any guaranteed policy values will belong to the policy owner even if premium payments are discounted

29. In certain situations a company may file interpleader actions with a Court of Law This remedy is used to a. Determine if the cause of the insured's death was an excluded risk b. Decide conflicting claims on the same insurance proceeds c. Resolve the question of insurable interest d. Recommend the best settlement options for the beneficiary If the interest on a policy loan is not paid at the policy anniversary the insurance

b. Decide conflicting claims on the same insurance proceeds

4. A policy where an irrevocable beneficiary has been designated the insured, without the beneficiary's permission can a. Avail of a non-forfeiture option b. Discontinue premium payments c. Borrow minimal cash loan d. Alter the dividend option now in effect

b. Discontinue premium payments

51. A housewife without gainful employment applies for a P500,000 life coverage. Which of the following should the agent do? a. Tell her she has no need for it b. Examine the adequacy of the husband's insurance coverage c. Suggest she doubles the amount d. Be grateful

b. Examine the adequacy of the husband's insurance coverage

38.The following statements concerning insurable interest are correct, except: A. It is deemed to exist if economic loss would occur at the death of the insured b. It is important for purposes of underwriting the risk C. Everyone has an insurable interest in his own life d. It is deemed to exist by virtue of a relationship by blood or marriages

b. It is important for purposes of underwriting the risk

11. A risk considered substandard based on any or all of the following criteria a. Death, income and educational attainment b. Occupation, character and family health history c. Death occupation and moral character d. Income, educational attainment and occupation

b. Occupation, character and family health history

40. A yearly renewable term life insurance policy generally specifies that a. The policy owner may renew the policy only once b. Premiums shall increase every time the policy is renewed c. Evidence of insurability shall be required every renewal d. Cash values will increase for as long as the policy is in force

b. Premiums shall increase every time the policy is renewed

9. The company will allow a policy change from a higher premium to a lower premium provided the insured a. Buys a new plan altogether b. Presents satisfactory evidence of insurability c. Momentarily assigns the policy to the company d. Obtains written consent from his or her spouse

b. Presents satisfactory evidence of insurability

28. In a life insurance company, risk appraisal is necessary to a. Project dividend rates for participating polices b. Prevent any anti-selection c. Calculate the mortality rate for a given policy. d. Collate mortality statistics

b. Prevent any anti-selection

40.The basic purposes of a conditional premium receipt are to acknowledge payment of the initial to premium for life insurance and to a. Backdate the policy to save age b. Provide insurance coverage earlier than the policy delivery date if certain requirements are met c. Guarantee that a policy will be issued as applied for d. Eliminate the need for acceptance of the offer in forming the contract

b. Provide insurance coverage earlier than the policy delivery date if certain requirements are met

41.The type of life insurance where the insured pays premium for a limited period. If the insured dies within the period, his beneficiary is paid, but if the insured outlives the period, he does not get anything, is generally referred to as: a. endowment policy b. Term insurance c. Whole life d. Limited payment policy

b. Term insurance

37. The insured named a primary and secondary revocable beneficiary for Ps. 20,000 policy. Which of the following is correct? a. The designation of a contingent beneficiary is subject to the primary beneficiary's approval b. The insured can add a third beneficiary at any time c. Any policy loan assignment will require the primary beneficiary's signature d. Upon the insured's death the primary and secondary beneficiaries shall each receive Ps. 10,000

b. The insured can add a third beneficiary at any time

11. Which of the following statements about "Disability Waiver of Premium Rider" is false? a. Disability must occur before a stated date b. The insured has to die while disabled c. There is a waiting period d. It has to be attached to a life insurance policy

b. The insured has to die while disabled

19. An agent who determines a prospect's complete financial requirements preparatory to offering him a policy using the correct selling approach knows as a. Counselor selling b. Total needs selling c. Planned selling d. Multiple products selling

b. Total needs selling

42. Generally, a reinstatement application will be accepted from the owner of a lapsed insurance policy a. Anytime within the extended term insurance period regardless of its length b. Within a period of three or five years after the date of lapse as specified in the policy c. Only a premium due date or during the grace period of an unpaid premium d. Anytime during the lifetime of the insured

b. Within a period of three or five years after the date of lapse as specified in the policy

14. The total life coverage of a permanent basic policy can be greatly increased through the use of a. An accidental death benefit rider b. An interim term rider c. A supplemental term rider d. None of the above

c. A supplemental term ride

13. Paid-up additions a. Affect both cash and loan value of the policy b. Don't affect the cash value of the policy c. Don't affect the loan or cash value of the policy d. Only affect the cash value of the policy

c. Don't affect the loan or cash value of the policy

6.If the person whose life is insured dies during the grace period and the premiums was not paid, the amount that the insurance company will pay to the beneficiary is usually the a. Full face amount of the policy b. Total premiums paid up to the date of birth plus interest c. Face amount of the policy minus the unpaid premium d. Cash surrender value of the policy minus the unpaid premium

c. Face amount of the policy minus the unpaid premium

5. What are the basic settlement options? a. Policy loan, guaranteed insurability b. Cash surrender value, automatic premium loan c. Fixed amount, fixed period, life income, interest on deposit d. Double indemnity, total and permanent disability waiver

c. Fixed amount, fixed period, life income, interest on deposit

21. Notwithstanding various possible legal impediments, if the owner of an endowment at age 65 policy tells you that the maturity of the policy he wants to provide his church with a monthly donation for as long as the church exists. which option do you recommend? a. Fixed income option c. Interest option b. Periodic annuity option d. Life annuity option

c. Interest option

45. Your client tells you that when his father died, he received P 500,000 free of Estate Tax and thathe had not even known that this policy existed. Which of the following classifications did your client fall under? a. Collateral assignee b. Absolute assignee c. Irrevocable primary beneficiary d. Revocable primary beneficiary

c. Irrevocable primary beneficiary

46. Mr. Som walked out of his house one night and was never heard of again. His wife wanted to make a claim of his life insurance policy she believes that he is dead. Which of the following statements is correct in this case? a. It would require 6 months before the court could declare him dead b. The company would pay immediately c. It would be seven years before the court could declare him legally dead d. It would be four years before the court could declare him legally dead

c. It would be seven years before the court could declare him legally dead

21.Applicants for life insurance with moderate physical impairments are called sub-standard risks and a. Therefore cannot obtain life insurance in any company b. Are required to pay premiums on an annual basis c. May be insured at increased rates to compensate for the extra hazard d. Are issued policies without any non-forfeiture values

c. May be insured at increased rates to compensate for the extra hazard

28. Purchasing a continuous-premium, whole life policy rather than a limited payment, whole life policy gives the policyowner the advantage of a. Concentration of premium payments during the period of highest Earnings b. Liberal risk selection procedures c. More insurance protection for the same annual premiums outlay d. More rapid accumulation of cash values

c. More insurance protection for the same annual premiums outlay

33."Critical years" in the programming of life insurance means: a. Years between the time the youngest child is 15, years old and the mother is 62 years old b. Years immediately following the insured's death c. Period during which the children are small and cannot provide for themselves d. Retirement years

c. Period during which the children are small and cannot provide for themselves

23. The conservation of a life insurance policy is dependent on all the following except a. The level of first year commission b. Agent's service oriented attitude c. Pressure selling d. The use of effective needs selling

c. Pressure selling

18. Endowment life insurance and term life insurance are similar in that both plans a. Build up cash value rapidly in the early policy years b. Provide for payment of the face amount if the insured is alive at the end of the specified period c. Provide life insurance protection for only the period of time specified in the policy contract d. Contain provisions for automatic continuation of the insurance protection at the end of a specified period

c. Provide life insurance protection for only the period of time specified in the policy contract

12. In most life insurance applications, the largest amount of information requested is data which a. Identifies the applicant b. Describes the type of insurance applied for c. Relates to the insurability of the applicant d. Describes the desired benefits and mode of payment

c. Relates to the insurability of the applicant

14.The fundamental advantage of the use of life insurance as a means of meeting economic losses is that through life insurance these losses are a. Deferred for a specific period of time b. Reduced for the group as a whole through the multiplier effect c. Spread over a large number of people d. Met as they arise through savings accumulated on an assessment basis

c. Spread over a large number of people

38. When you bought an insurance policy on your wife's life, you were 27 and she was 26, but you stated that you were 26 and she was 27. Five years later your wife died. The insurer will pay a. Slightly less than the face amount b. The face amount c. The face amount adjusted for misstatement of age d. The sum of the premium paid

c. The face amount adjusted for misstatement of age

13. Mr. X is an employee of ABC Company and is provided a life insurance coverage. Mr. X joined a boxing match during the company's anniversary party. As he was about to enter the boxing ring, he accidentally slipped, his head hit the floor and died as a result thereof. Which of the following statements is correct? a. The cause of death relieves the insurer of any liability as the insured has willingly exposed himself to risk. b. Voluntarily joining the boxing game has resulted to the forfeiture of any benefits under the rest insurance policy. c. The insured accidentally slipped which caused his death. Therefore, death is compensable. d. The cause of death is intentional since the insured voluntarily joined the boxing game.

c. The insured accidentally slipped which caused his death. Therefore, death is compensable.

32.Which of the following is false? a. When an agent meets a prospect for the first time, he has to sell confidence in himself b. When an agent makes a sales presentation, he has to sell confidence in the product c. The job of an agent is to squeeze as much money as possible out of making a new sale d. The primary job of an agent is to get people happily involved with the ownership of his policy

c. The job of an agent is to squeeze as much money as possible out of making a new sale

44. A businessman has arranged for a development loan which will be available 1 year from now. Because he is unable to wait until then he has arranged an interim loan with his bank. The only problem is that the bank wants to loan secured against the risk of his death. What is the best economic arrangement that you can recommend? a. Interim term b. Decreasing term c. Yearly renewable term d. Extended term

c. Yearly renewable term

46. Life insurance contributes directly to the welfare and progress of the country by a. Accumulating capital for investment in commerce and industry b. Partially relieving the community of the care of dependents c. Encouraging provision for the future d. All of the above

d. All of the above

30. Which of the following statement is false? a. The cash value of a whole life policy builds up at a slower rate than for a 20 year endowment b. The cash value in a permanent policy is guaranteed by the company c. The cash value of an endowment builds up faster than that for a limited pay life policy of the same duration d. Because of its very short duration the cash value of a yearly renewable term policy grows very fast

d. Because of its very short duration the cash value of a yearly renewable term policy grows very fast

1.In the case where the insured designated his common law wife as beneficiary, which of the following statements is CORRECT? a. Insurer may rescind the contract, the premiums is forfeited b. Beneficiary is disqualified, the proceeds will go to the estate of the beneficiary c. Policy is void, the insurer must return the premiums paid d. Designation of beneficiary is void, estate of the insured will get the proceeds

d. Designation of beneficiary is void, estate of the insured will get the proceeds

34. A non-forfeiture option would ordinarily be selected at the time a policyowner a. Renews a term life policy b. Converts a term policy to a whole life policy c. Chooses a mode of settlement for the life proceeds d. Discontinues premium payments for a whole life or endowment policy

d. Discontinues premium payments for a whole life or endowment policy

44. Life insurance guarantees cash benefits for all the following except a. Mortgage b. Clean-up fund c. Family dependency period income d. Educational fund

d. Educational fund

42. One requirement a policyowner must meet in order to reinstate a life insurance policy is to ______. a. Agree to apply future policy dividends toward the payment of premium b. Assign the policy collaterally to the insurance company for the amount of the overdue premiums plus any outstanding policy loan c. Pay future premiums at the rate for his or her attained age at the time of reinstatement d. Furnish evidence of insurability which satisfactory to the insurance company

d. Furnish evidence of insurability which satisfactory to the insurance company

24. All of the following are sources of information to an insurance company pertaining to the insurability of an applicant except a. The applicant's personal appearance b. Medical examination report c. Agent's inspection report d. Government tax records

d. Government tax records

47. Who among the following maybe a beneficiary? a. Those made between persons found guilty of the same criminal offense, in consideration thereof b. Those made to a public officer or his wife, descendants and ascendants, by reason of his office c. Those made between persons who were guilty of adultery or concubinage at the time of the donation d. Illegitimate children borne out of illicit relationship

d. Illegitimate children borne out of illicit relationship

17. A man applied for a Ps. 20,000 whole life policy and paid the full initial premium to the soliciting agent. The agent issued a binding receipt. Under such a receipt, the insurance company a. Offers permanent insurance coverage effective as of the date of the application b. Promises that the insurance coverage will become effective as of the date the application is approved c. Guarantees the policy will be issued as applied for d. Immediately provides interim insurance that remains in effect until the policy is issued or the application is declined

d. Immediately provides interim insurance that remains in effect until the policy is issued or the application is declined

35. If the interest on a policy loan is not paid at the policy anniversary the insurance company may a. Demand full settlement of the loan b. Terminate the contract c. Refuse to grant future additional loan d. Increase the present loan by the interest

d. Increase the present loan by the interest

1. Both endowment and term life policies provide that a. No cash value is available to the policy owner during the term of the policy b. Renewal and conversion privileges are available c. A benefit will be paid at the end of the period of coverage if the person is then alive d. Insurance protection will be limited to a specified period

d. Insurance protection will be limited to a specified period

41. The following statements concerning insurable interest are correct, except: a. Everyone has an insurable interest in his own life. b. It is deemed to exist by virtue of a relationship by blood or marriage. c. It is deemed to exist if economic loss would occur at the death of the insured. d. It is important for purposes of underwriting the risk

d. It is important for purposes of underwriting the risk

43.Which of the following describes the convertible feature of a term insurance policy? a. It may be changed for a guaranteed sum b. It may be changed to another term insurance policy without evidence of insurability c. It may be changed to another whole life policy d. It may be changed to a permanent insurance without evidence of insurability

d. It may be changed to a permanent insurance without evidence of insurability

37. A policy that is in force for less than the original sum assured with no indebtedness has availed of a. The reinstatement provision b. Cancellation c. Grace period d. Paid up insurance option

d. Paid up insurance option

3.The only instance when a life insurance conract is treated primarily as an indemnity agreement is when a a. Person insures the life of his or her spouse ta protect against the loss of income earned bythe spouse b. A person insures the life of a friend c. Creditor insures the life of his debtor to protect himself d. Person in a relationship insures the life of his partner to protect the firm against loss due tothe death of that partner

d. Person in a relationship insures the life of his partner to protect the firm against loss due tothe death of that partner

36. The incontestability clause a. Gives the company the right to rescind a policy at any time b. Permits the company to pay claims within 2 years c. Makes it necessary for the beneficiary to present proof of death in the event of a death claim d. Prevents the company from denying a claim after the policy has been in force for 2 year

d. Prevents the company from denying a claim after the policy has been in force for 2 years

26. The settlement options provision may provide all of the following except: a. Payment of the proceeds for the life of the insured b. Payment of the proceeds over a fixed period c. Payments of the proceeds in fixed amounts until exhausted d. Proceeds held by the company, with interest payable to the beneficiary on request

d. Proceeds held by the company, with interest payable to the beneficiary on request

8. In the event that a policy owner elects the paid-up insurance option a. The premiums stop and the policy continues for the full face amount until age 65 b. The insurance continues at a reduced amount and with a reduced premium c. The policy will automatically terminate d. The premiums cease and protection continues with a reduced amount of Coverage

d. The premiums cease and protection continues with a reduced amount of Coverage

7. Which of the following is the least important reason for requiring that insurance agents be licensed? a. To establish and maintain high professional and ethical standards b. To protect the public c. To give the government adequate control over the conduct of agents d. To provide additional income to the government through license fees

d. To provide additional income to the government through license fees

25. If the applicant for life insurance fails to disclose or misrepresents material fact, the contract is a. Valid if the insurer issues a policy which is delivered to the applicant b. Void from the beginning c. Voidable by the insurer if it has been in force less than 2 years d. Valid unless the insurer can prove fraud

d. Valid unless the insurer can prove fraud

19.When the death benefit of a policy is restricted in amount during the early years of the policy this restriction is known as a. An increasing death benefit b. Rate adjustment c. A subtractive clause d. a lien

d. a lien