CHP 10
Georgia was supposed to pay her premium by the 15th of the month. Which of the following provisions allows her to keep her coverage if she is a couple of weeks late with paying her premium (without penalty)? Incontestability clause Misstatement of age provision Naming a beneficiary Policy reinstatement The grace period
The grace period
Which of the following is NOT recommended when buying life insurance? Buying from a financially strong company Buying from professionally qualified representatives The non-life insurance products offered by local agencies Working with a representative who will help you select the proper kind of protection within your financial boundaries Asking trusted, experienced family or friends for recommendations to choose an insurance company
The non-life insurance products offered by local agencies
Another name for temporary life insurance is: Whole life insurance. Straight life insurance. Ordinary life insurance. Term life insurance. Cash-value life insurance.
Term life insurance.
Which of the following is a charge you will pay when you purchase a variable annuity? Surrender charge Mortality and expense risk charge Administrative fee Fund expense All of these are charges you will pay.
All of these are charges you will pay.
Which of the following allows an individual to receive a fixed amount of income over a certain period of time, or over his or her life? A fixed annuity Term insurance Whole insurance A variable annuity A 401(k)
A fixed annuity
Mildred was diagnosed with terminal cancer and knows that she doesn't have long to live. Which of the following riders would allow her to receive cash now? Waiver of premium disability benefit Accidental death benefit Guaranteed insurability option Cost-of-living protection Accelerated benefits
Accelerated benefits
Frank, age 38, was killed in a car accident. Which of the following riders provided an additional benefit for his heirs? Waiver of premium disability benefit Accidental death benefit Guaranteed insurability option Cost-of-living protection Accelerated benefits
Accidental death benefit
Which of the following is NOT a factor that affects the price a company charges for a life insurance policy? The company's cost of doing business The return on its investments The mortality rate it expects among its policyholders The policy features All of these affect the price.
All of these affect the price.
Pam just started working at XYZ Widget Company and finally wants to get insurance coverage through her employer. She does not want to take a medical exam to get coverage, because she has some underlying health conditions and is concerned that she might not qualify for a policy. Which of the following life insurance policies should she apply for? Adjustable life Group life Limited life Universal life Variable life
Group life
The most important part of an insurance agent's job is to: Sell you the highest level of coverage available. Collect premiums for the insurance contract. Tell you why her product is better than the competitor's. Help you select the proper kind of protection within your financial boundaries. Convince you to buy the policy that will pay her the highest commission.
Help you select the proper kind of protection within your financial boundaries.
Of the following, which one is the most positive feature of whole life insurance for a person who wants a more structured way to save? You must pay interest on any loans. You pay premiums each year for the rest of your life. It is more expensive than term insurance. It builds cash value. It is permanent life insurance.
It builds cash value.
Wendy has had a life insurance policy for five years with her spouse listed as the person who receives the benefit if she dies. She was recently divorced. Which of the following provisions should she take action on? Incontestability clause Misstatement of age provision Naming a beneficiary Policy reinstatement The grace period
Naming a beneficiary
