Small errors
#1. Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid? a) Insuring clause b) Entire contract clause c) Beneficiary clause d) Consideration clause
A
#3. Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early? a) Dividend Accumulation option b) Paid-up option c) Accumulation at Interest d) Paid-up additions
B
#10. What is the advantage of reinstating a policy instead of applying for a new one? a) The face amount can be increased. b) The cash values have gained interest while the policy was lapsed. c) The original age is used for premium determination. d) Proof of insurability is not required.
C
#11. Which of the following is another name for a primary care physician in an HMO? a) Referring physician b) Specialist c) Gatekeeper d) Subscriber
C
#15. The purpose of managed care health insurance plans is to a) Give the insured an unlimited choice of providers. b) Coordinate benefits. c) Control health insurance claims expenses. d) Provide for the continuation of coverage when an employee leaves the plan
C
#11. Which of the following statements regarding the Change of Beneficiaries Provision is false? a) A policyowner can change beneficiaries without the consent of the former revocable beneficiary. b) The policyowner cannot change beneficiaries if he/she has chosen to have an irrevocable beneficiary, unless the policyowner has the permission of the irrevocable beneficiary. c) All policies that allow a death benefit must at least provide the option of a change of beneficiary provision. d) The policyowner has the right to change beneficiaries in any case
D
#14. All of the following are examples of third-party ownership of a life insurance policy EXCEPT a) An insured couple purchases a life insurance policy insuring the life of their grandson. b) A company purchases a life insurance policy on their manager, who is an important part of the operation. c) When an insured purchased a new home, the insured made an absolute assignment of a life insurance policy to the mortgage company. d) An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan
D
#16. An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy? a) Dividend options b) Guaranteed renewable option c) Nonforfeiture options d) Guaranteed insurability option
D
#4. In a life settlement contract, whom does the life settlement broker represent? a) The insurer b) The beneficiary c) The life settlement intermediary d) The owner
D
#6. Annually renewable term policies provide a level death benefit for a premium that a) Decreases annually. b) Remains level. c) Fluctuates. d) Increases annually.
D
#18. Which of the following policies would be classified as a traditional level premium contract? a) Universal Life b) Variable Universal Life c) Straight Life d) Adjustable Life
C
#19. An agent is ready to deliver a policy to an applicant but has not yet received payment. Upon delivery, the agent collects the applicant's premium check, answers any questions the applicant may have, and then leaves. What did he forget to do? a) Ask the applicant to sign a statement that acknowledges that the policy had been delivered b) Collect a late payment fee c) Ask her to sign a statement of good health d) Offer her a secondary policy
C
#2. Which of the following will be included in a policy summary? a) Comparisons with similar policies b) Primary and secondary beneficiary designations c) Premium amounts and surrender values d) Copies of illustrations and application
C
#21. Who must pay for the cost of a medical examination required in the process of underwriting? a) Underwriters b) Department of Insurance c) Insurer d) Applicant
C
#27. What is another name for interest-sensitive whole life insurance? a) Term life b) Adjustable life c) Current assumption life d) Variable life
C
#39. Which of the following insurance products will be subject to the regulation on life insurance solicitation? a) A group life policy b) An annuity c) A term life policy d) A credit life policy
C
#9. Which of the following life insurance policies allows a policyowner to take out a loan from the policy's cash value? a) Credit term life b) Decreasing term life c) Variable universal life d) Increasing term life Variable universal life
C
