Practice Life Exam

The insured's medical history

Which of the following are generally NOT considered when underwriting a group insurance?

Policy owner

Which of the following individuals must have insurable interest in the insured?

Income payments start within one year

Which of the following is a feature of a single premium immediate annuity?

By their members - authorized insurers

How are state Insurance Guaranty Associations funded?

Require evidence of insurability

If an employee wants to enter the group outside of the opening enrollment period to reduce adverse selection, the insurer may

Limited-pay Life

An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it's

When the I aired reaches aha 100

When would a 20-pay whole life insurance policy endow?

An annuity owner is funding an annuity that will supplement her retirement. Because she does Nat know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 index. She would likely purchase a(n)

Equity Indexed Annuity

An unfair trade practice

If an insurer company makes a statement that its policies are guaranteed by The existence of the Insurance Guaranty Association, that would be

The contingent beneficiary

In a case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to

The applicant had a prior felony conviction

In which of the following example would a contract between an insurer and I prospected insured be legal?

When a reduced paid up nonforfeiture option is choosing, what happens to the face amount of the policy?

It is reduced to the amount of what the cash value would buy as a single premium

Which of the following is an example of a limited pay life policy?

Life Paid-up at Age 65

Rod can pay his premium as early as he wants, even with his application

Rod wants to pay his initial life insurance premium in advance. Which of the following best describes his situation?

Universal Life

The Waiver of Cost of Insurance rider is found in what type of insurance?

Grace period

The automatic premium loan probision is activated at the end of the

Life income with period certain.

The form of life annuity which pays benefits through the lifetime of the annuitant and also guaranteed payment for a minimum of number of years is called

And employee quits his job on May 15 and doesn't convert his group life policy into an individual policy for two weeks. He does in a freak accident on June 1. Which of the following statements best describes what will happen?

The insurer will pay the full death benefit from the group policy to the beneficiary.

Reduction of premium

The policy owner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would you allow her to do this?

Spendthrift provision

When a life insurance policy stipulates that the beneficiary will receive payments in specified installments or for a specified number of years, what provision prevents the beneficiary from changing or borrowing from the planned installments?

Creditor is the policy owner

Which of the following is true about credit life insurance

backdating policies to secure a lower premium for the insured

Which of the following would NOT be considered a miss representation on the part of the insurer?

Vacation travel expenses

Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds?

Interest only

Which settlement option allows The insured to retain the face amount but pay some income based on gain on the proceeds to the beneficiary at regular intervals?

Estimate market conditions for the life of the policy

Which the following is NOT A way to determine the interest rate in a Universal Life Policy?

Monthly premium wavier and monthly income

Z falls from the roof of his house while fixing it and damages his spinal column enough to render him disabled for a year. His insurance policy and carries a Disability Income Benefit Rider. Which of the following benefits will Z receive ?