Aware2pass questions
A flexible premium, adjustable benefit life insurance contract that accumulates cash value is known as...
Universal Life
Which of the following policies is an INTEREST-SENSITIVE permanent plan of insurance?
Universal Life
The policy type which has guaranteed fixed minimums death benefit and a fixed premium, but the actual death benefit can increase according to the rate of return earned in the separate account.
Variable Life
What does the securities exchange Commission (SEC) manage and govern?
Variable Life Policies
A type of rider that is usually used to exclude benefits and from which no premium is charged is called a:
Waiver
When an insured becomes totally and presently disabled it triggers a rider/provision that keeps the policy in force even though the insured stops making premium payments,. This is an example of?
Waiver of premium provision
A pseudo who acts, under a written agreement, in collecting premiums and settling life and disability claims is?
an administrator
The insured, age 65, owns a $100,000 non participating whole life policy. The policy is paid as of today. When would the cash value reach $100,000?
Age 100
All of the following are characteristics of the guaranteed insurability option/RIDER (GIR) EXCEPT:
Allows the insured to purchase additional insurance in the future at the same rates charged in the original contact.
A representation in an insurance contract could qualify as which of the following?
An implied warranty
A contract that restores an injured party to the condition that was present before the loss is?
An indemnity agreement
Which of these is the best way to define the concept of INDEMNITY?
An insured cannot receive more than the actual economic loss in the event of a claim.
The least expensive first year premium payment is found in?
Annual renewable term
Single Premium whole life policies...
Are ALWAYS modified endowment policies
When the insured exercise the guaranteed insurability rider the premium will be based upon?
Attained age
Which of the following life insurance policy riders does not require additional premium?
Automatic premium loan
All of the following statement concerning the family rider are correct EXCEPT:
Both the spouse and the breadwinner are covered for he sam death benefit: FALSE
The health maintenance or organization concept that service providers are paid a fixed monthly fee for each member is called?
Capitation
What is the difference between concealment and misrepresentation?
Concealment is the withholding of a material fact; misrepresentation is a misstatement of a material fact
Which of the following is considered ordinary life insurance?
Continuous premium whole life
Since the diagnosis and wording of a policy are the the hands of the insurer, Insurance policies are said to be which of the following?
Contracts of adhesion
The employees right to exchange coverage under group life insurance for an individual policy within 31 days from termination of employment is provided by the?
Conversion provision
Selffunding of employee benefit plans cannot be used for?
DEATH benefits
Endowment policies...
Do not offer any insurance protection after the policy matures
The type of policy that uses dividends to purchase additional paid-up incruance to replace a term insurance rider is...
Economatic
According to California Insurance Law, who is legally allowed to cancel an insurance policy?
Either the insured or the insurer
Which of the following types of policies is designed primarily for the accumulation of funds within a specified period of time and provides protection in the amount of the contracts face value during that time?
Endowment
All of the following are true concerning the children protection on a family policy, EXCEPT?
Evidence of insurability is required if coverage for children is permanent insurance.
Common life insurance policy riders include all of the following EXCEPT:
Extended term
In order for the beneficiary to receive the death benefit under a 20-pay whole life policy would require the premium to be paid...
FOr 20 years or until death, whichever occurs first
Which of the following types of group coverage generally preclude (PREVENT) individual selection?
Group life, health, disability
Which of the following is a significant difference between individual policies and group life insurance contracts?
Group underwriting is based on averages, such as the average age, the average working conditions and the average health condition of the group members.
Which of the following gives individuals the right to purchase additional life insurance regardless of their insurability?
Guaranteed Insurability
The producer added a rider that will allow the insured to purchase additional insurance in the future without having to provide insurability. This order is known as:
Guaranteed Insurability option rider
Which of the following is true about the net insurance protection provided by a sole life insurance policy?
It decreases as the cash value increases.
Which of the following best described a 10-pay life policy?
It is paid up in 10 years
All of the following apply to a term policy, EXCEPT?
It pays at the end of a stated period.
Which of the following is INCORRECT concerning the waiver of monthly deduction rider?
It pays the total premium
What type of policy frequently increases five-fold after a certain number of years?
Jumping and Juvenile
The usual amount of death benefit in an industrial life insurance policy is?
Less than $2,000
Whole life insurance has =
Level premiums and face amount
Term insurance is typically characterized by:
Low premiums and no cash value
An association of industry specific employers who are joined together in order to qualify for, or gain premium advantages, in group insurance is:
MET (multiple employer trusts)
Regarding life insurance coverage for a company, the one responsible for obtaining the coverage, maintaining the policy, and paying the premium is the?
Master policyholder
Which type of insurance policy provides a death benefit that matches the projected outstanding debt on an individuals home?
Mortgage Protection
Policies that are combinations of a whole and a term insurance, whereby the amount of protection is higher in the early year of the policy and less in the later years is known as?
Multiple Protection
AN insured is notified the the insurance company will not provide coverage after the current policy expires. That is considered to be an?
Non-renewal
Which of the following triggers an automatic premium loan?
Nonpayment of premium at the end of the grace period
The guarantee insurability rider provides that the policy owner can purchase more insurance:
On his/ her own life at certain specific ages WITHOUT proof of insurability.
Which of the following os not a characteristic of an endowment contract?
One of the least expensive types of life insurance
What is meant by referring to an insurance policy as a unilateral contract?
Only one party makes a legally enforceable promise.
Which of the following life insurance disability riders would be most appropriate for a juvenile life policy?
Payor Benefit
The type of rider that applies and requires insurability information on someone other than the insured would be?
Payor benefit
The correct statement concerning cost of living rider is the policy owner...
Pays an additional premium for the extra protection the rider provides and will see the face amount the contract increase according to the increase of the index.
The disability must be which of the following for the waiver of premium rider to apply?
Permanent and total
AN earned premium is the?
Portion of paid premium representing the period insurance has been provided
Variable life insurance...
Premiums for variable and Universal life polices have deductions to cover sales and administrative expenses.
All of the following are common features of a preferred provider organization (PPO), EXCEPT:
Primary care physicians act as gatekeepers
Unless it is merely a statement of an expectation or a belief, a representation as to the future is considered to be which of the following?
Promise
The amount of money an insurer sets aside to pay future claims is known as:
Reserve
A modification to a life insurance policy is called a:
Rider
The basic feature of a managed care indemnity plan is that the participants...
Select a provider and submit claims to the insurance company.
If an insurer cancels a policy and retains the earned premium plus and added amount to cover overhead expenses incurred, it is referred to as?
Short rate cancelation
AD&D policies have which of the following characteristics?
Stated values
Which of the following policies may be referred to as a " LAST TO DIE" policy?
Survivorship Life
The type of life insurance most widely used for group plans would be?
Term
An individual with low income and high insurance need should buy?
Term Insurance
The best definition of an insures loss reserve is?
The approximate dollar amount of an insurers liability for at least one (or more) open claims.
A term police is designed to mature upon which of the following?
The date of policy expiration
Which of the following is correct regarding a variable universal life policy?
The death benefit is NOT guaranteed,
A traditional whole life policy is designed to mature upon all of the following EXCEPT:
The end of the premium payment period
When an insured purchases a decreasing term policy what decreases?
The face amount decreases
All of the following apply to life insurance cost of living rider, EXCEPT;
The face value of the policy raises or lowers as the cost of living index increases or decreases
The false statement about universal life is...
The growth of cash values that exceeds the guaranteed rate is subject to current income taxation.
Which of the following is a correct statement about life insurance policy types?
The initial premium for term insurance is lower than the initial premium for whole life insurance.
All of the following statements about the gatekeeper system are true, EXCEPT:
The insured MUST utilize their primary physicians who authorize all care for the insured
When an insured cancels a policy prior to it's expiration date, the insurance company will return a portion of the unused premium on a short rate basis. Short rate means:
The insurer will keep the earned premium plus an additional amount for policy writing expenses
In group insurance, the evidence of a contract between the insurer and the employer or association is:
The policy
All of the following statements about survivorship life insurance are true EXCEPT?
The policy face amount is paid out only upon the death of the first insured to die.
Interest sensitive whole life policy...
The policy guarantees a minimum growth of cash value, but it may pay higher rate of return based on current interest rates.
All of the following may trigger accelerated death benefits EXCEPT:
Total disability
all of the following are benefits which can be paid under an accelerated death benefit EXCEPT:
Total disability
In which of the following contracts is the death benefit called the principal sum?
AD&D
The most common life insurance riders are:
Waiver of premium Accidental death and dismemberment Cost of living
The waiver of premium provision of a life policy allows the insurance company to take which of the following actions?
Waives an insureds premiums if the insured becomes totally disabled before a certain age.
The type of insurance sometimes known as "ORDINARY INSURANCE" is?
Whole Life Insurance
The policy which will guarantee protection until age 100 and develop cash value at the fastest rate for a 30 year old male...
20 pay life
After an insureds group coverage is terminated, how long does he or she have to convert to the new plan of insurance?
31 days
In California, the minimum participation requirement for a contributory large group health insurance plan would be:
75% of eligible employees
For the beneficiary to receive accidental death benefits the insureds death must occur within how many days following the accident?
90 days
AN life insurance policy that provides coverage to every family member in a single policy, with permanent insurance on the breadwinner and convertible term on the other family members is called?
A Family Policy
All of the following would qualify for a group insurance plan except?
A group formed for the sole purpose of purchasing a group insurance plan.
Renewable term insurance can be best described as?
A level death benefit with an increase in premium
In an AD&D policy, the term CAPITAL SUM refers to?
A lump sum payment for a accidental dismemberment
Which type of term insurance features level premiums and death benefit that increase each year?
Increasing term
A typical GIR option (guaranteed insurability option) allows the policy owner/ insured to purchase which of the following?
Additional coverage on his own life without proof of insurability.
If a court were the decide the insureds insurance policy was written in an ambiguous or unclear manner the special characteristic or features of an insurance policy that will likely have the court to rule in the insureds favor is:
Adhesion
The return of premium rider is actually:
AN increasing term rider added to a permanent policy
If a policy contains. guaranteed insurability rider, the insured has the right to purchase:
Additional coverage at specified ages
Attempting to induce a policyholder to lapse, forfeit, or surrender existing insurance through the use of misleading representations or comparisons of insurers is the definition of?
twisting