VA Insurance Exam

Which of the following premium payment modes will incur the lowest overall payment?

Annual

The automatic premium loan provision is activated at the end of the?

Grace period

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/prior to the child reaching the maximum coverage age

Which of the following statements is TRUE about a policy assignment?

It transfers rights of ownership from the owner to another person.

All of the following are beneficiary designations EXCEPT?

Specified

An insured stops making payments on a loan taken from his cash value policy. What will most likely happen?

The policy will terminate when the loan amount with interest equals or exceeds the cash value

Which of the following statements is TRUE concerning irrevocable beneficiaries?

They can be changed only with the written consent of the beneficiary

Which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the event of the insured's death?

A minor son of the insured

Using a class designation for beneficiaries means

Naming beneficiaries as a group

Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner?

Cash surrender

What component must a life insurance policy have to allow policy loans?

Cash value

An insured purchased a life insurance policy on his life naming his wife as the primary beneficiary, and his daughter as the contingent beneficiary. Under what circumstances could the daughter collect the death benefit?

If the primary beneficiary predeceases the insured

When a life insurance policy was issued, the policyowner designated a primary and contingent beneficiary. Several years later, both the insured and the primary beneficiary die in the same car accident,and it was impossible to determine who died first. Which of the following would receive the death benefit?

The insured's contingent beneficiary

A 40-year old man buys a whole life policy and names his wife as his only beneficiary. His wife dies 10 years later. He never remarries and dies at 61, leaving behind 2 grown children. Assuming he never changed the beneficiary, the policy proceeds go to?

The insured's estate