Life Exam Missed Questions
All of the following statements are correct regarding credit life insurance except
Benefits are paid to the borrowers beneficiary
What does liquidity refer to in a life insurance policy?
Cash values can be borrowed at any time
Contracts that are prepared by one party and submitted to the other party on a take it or leave it basis are classified as
Contracts of adhesion
Who assumes control over an insurance companys funds and management if it becomes insolvent?
Department of insurance
When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?
Equal to the original policy for as long as the cash values will purchase
Which of the following is an eligibility requirement for all social security disability income benefits?
Have attained fully insured status
Which of the following policy components contains the company's promise to pay?
Insuring clause
Which of the following settlement options in life insurance is known as straight life?
Life income
Which of the following is another term for the accumulation period of an annuity?
Pay in period
An insured committed suicide one year after his life insurance policy was issued. The insurer will
Refund the premiums paid
When an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy, as well as a refund of all the premiums paid. Which rider is attached to the policy?
Return of premium
Which of the following statements concerning a simplified employee pension plan (sep) is incorrect?
SEPs are suitable for large companies
Which of the following policies would be classified as a traditional level premium contract?
Straight life
All of the following are unfair claims settlement practices except
Suggesting negotiations in settling the claim
When a life insurance policy issued the policyowner designated a primary and a contingent beneficiary. Several years later, both the insured and the primary beneficiary died in the same car accident, and it was impossible to determine who died first. Which of the following would receive the death benefit?
The insureds contingent beneficiary
All of the following are true about variable products except
The premiums are invested in the insurers general account
The paid up addition option uses the dividend
To purchase a smaller amount of the same type of insurance as the original policy
Which of the following is an example of a limited pay life policy?
life paid up at age 65
Which of the following statements is true concerning whole life insurance?
lump-sum death benefits are not taxable
During replacement of life insurance a replacing insurer must do which of the following?
obtain a list of all life insurance policies that will be replaced
Methods used to pay the death benefits to a beneficiary upon the insureds death are called
settlement options
Which of the following is true regarding the premium in term policies
the premium is level
What percentage of a company's employees must take part in a noncontributory group life plan?
100%
How long is the insurance commissioners term in the office?
4 years
In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?
5
What is the waiting period on a waiver of premium ride in life insurance policies?
6 months
Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be
Adjusted to the insureds age at the time of renewal
Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company?
Aleatory
The full premium was submitted with the application for life insurance and the policy was issued two weeks later as requested. When does the policy coverage become effective?
As of the application date
A man purchased a $90,000 annuity with a single premium, and began receiving payments 2 months after that. What type of annuity is it?
Immediate
Life income joint and survivor settlement option guarantees
Income of 2 or more recipients until they die
What type of insurance would be used for a Return of Premium rider?
Increasing term
An insured has a life insurance policy with a face amount of $500 he pays a premium each week to the agent who sold him the policy. What kind of policy does the insured have?
Industrial life
A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will
Pay the policy proceeds only if it would have issued the policy
Which of the following determines the length of time that benefits will be received under the fixed amount settlement option?
Size of each installment
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
The death benefit can be increased by providing evidence of insurability.
Which of the following is true about nonforfeiture values?
They are required by state law to be included in the policy
When is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent
The death benefit under the Universal Life Option B
Gradually increases each year by the amount that the cash value increases
The insured under a 100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy species that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary recieve?
100,000
A paid up nonforfeiture benefit will become effective as specified in the policy unless the emtitled party elects another option within how many days after the due date of the premium in default?
60 days
All of the following benefits are available under social security expect
Welfare benefits
A rider attached to a life insurance policy that provides coverage on the insureds family members is called the
other insured rider
Which of the following will be included in a policy summary?
Premium amounts and surrender values
