Life Insurance Simulated Exam Questions

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled? a )Waiver of Premium b) Payor Benefit c) Jumping Juvenile d) Juvenile Premium Provision

b) Payor Benefit

A Return of Premium term life policy is written as what type of term coverage? a) Increasing b) Decreasing c) Renewable d) Level

a) Increasing

According to the nonforfeiture law, if the owner decides to surrender a deferred annuity prior to annuitization, the owner is entitled to which of the following? a) Full premium refund without any charges b) Guaranteed surrender value c) No payments d) Annuity dividends

b) Guaranteed surrender value

All of the following entities regulate variable life policies EXCEPT a) The Insurance Department b) The Guaranty Association c) Federal government d)The SEC

b) The Guaranty Association

The owner of a life insurance policy wishes to name two beneficiaries for the policy proceeds. What will the soliciting insurance producer say? a) The proceeds will be split evenly between the two beneficiaries b) The policyowner can specify the way proceeds are split in the policy c) The way proceeds are split between beneficiaries is decided by which type of policy is chosen d) Life insurance policies may have only one beneficiary

b) The policyowner can specify the way proceeds are split in the policy

Which of the following Life Insurance policies would be considered interest sensitive? a) Adjustable life b) Whole life c) Increasing term d) Universal life

b) Whole life

A key person insurance policy can pay for which of the following? a) Workers compensation b) Hospital bills of the key employee c) Costs of training a replacement d) Loss of personal income

c) Costs of training a replacement

In case of a loss, the indemnity provision in insurance policies a) Pays the insured a percentage of the loss above and beyond the loss b) Pays the insured as much as 95% of the loss c) Restores an insured person to the same financial state as before the loss d) Allows the insured to collect 20% more than the actual loss.

c) Restores an insured person to the same financial state as before the loss

Within how many months must a person be expected to die from a sickness in order to be classified as terminally ill? a) 3 b) 6 c) 12 d) 24

d) 24

What are the two components of a universal policy? a) Insurance and investments b) Mortality cost and interest c) Separate account and policy loans d) Insurance and cash account

d) Insurance and cash account

Who is a person, other than a viator, that enters into a viatical settlement contract? a) Purchaser b) Effectuator c) Broker d) Provider

d) Provider

Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement? a) Term insurance only b) Permanent insurance only c) Universal term life insurance only d) any type of life insurance

d) any type of life insurance