Financial Advisor Trad Exam 1

100問 • 1年前

Angela Daet

通報

問題一覧

A single premium policy means a policy

under which only one premium payment is required

A fixed amount added to the premium of a given policy regardless of policy size is known as

policy fee

To be able to calculate the required premiums for a given policy, the agent must know the applicant's

all of the above

To calculate premiums for the other modes of premium payment, the annual premium is

multiplied by a conversion factor for the mode of payment desired

A father enters into a life insurance contract on behalf of his child. In this case, the father is the

applicant-owner

The convertible feature of a term insurance policy provides that the policy may be

changed to a permanent insurance policy without evidence of insurability

Within two years of buying a life insurance policy, you are accidentally killed when your car hits a tree. In these circumstances, the insurance company will

pay the face amount

When explaining dividends, the following information must be supplied

that they are not guaranteed

Part of the premium paid by a policyholder is invested by the insurance company. In premium computation, this factor is known as

interest

The parties involved in a life insurance contract are the

insurance company and insured

The fundamental advantage of the use of insurance as a means of meeting economic losses is that through insurance, these losses are

Spread over a large number of people

Life Insurance contributes directly to the welfare and progress of the country by

All of the above

The number of years that persons at a given age will live on the average as shown by the mortality table is called

Life expectancy

An insurance plan which offers protection and savings is calle

permanent plan

A man with moderate means can have maximum protection possible through

Term insurance

Mr. Juan Valdez wants a policy which will entitle him to receive dividends yearly. What will you recommend to Mr. Valdez?

participating plans

Which of the following can give the longest protection?

Ordinary life

An individual at age 35 purchases a policy under which he will in 20 years receive the face amount of the policy himself, if he is still alive at that date. This policy is obviously a

20 yr. endowment

In a 20 life policy,

protection is until age 100, payment of premiums is for 20 years

A participating plan entitles the policyowner to receive a return of excess premiums. Such is termed as:

dividends

Mrs. Rose Cortez owns a policy which does not provide for the build up of cash values and whose premiums remain level. Mrs. Cortez owns:

level term

Two attractive features of a term insurance are:

convertibility and renewability

A term insurance which allows the policyowners to convert it to a permanent insurance within a specified period without evidence of insurability contains ________ feature:

convertibility

A term policy only offers

protection

The main difference between a term plan and a permanent plan is

permanent plans provide both protection and savings while term plans offer protection only

The savings element of permanent plans allows for the build up of

cash values

A term rider is

a term insurance added to a permanent plan

An optional rider which can be attached to a policy stopping further premium payments in the event of disability is called

waiver of premium

For the waiver of premium to be effective,

both answers are correct

Disability benefits are not paid

for self-inflicted injuries

Mr. Pedro Cruz became paralyzed as a result of jumping out of the window in an attempt to commit suicide. Under the usual provisions of a disability income policy, he would be entitled to

receive neither disability income nor waiver of premiums

A person wanting a greater coverage for the least amount of premium has an option of attaching what rider in his permanent life policy?

term insurance rider

One supplementary benefit offered is a payor’s benefit which is intended

to provide a waiver of premium benefit in the event of death or disability of the person paying the premiums

If an insured is disabled and his life insurance policy is being continued in force through the waiver of premium, the dividends of the policy would

continue as if the owner is paying the premium

A policy with a minor as the proposed insured is called

juvenile policy

Life insurance policies for which higher than standard premium rates are payable are said to be

rated policies

Since the purchase of life insurance is a voluntary choice, the individual must meet

certain standards of health and occupation

Which of the following factors would have the least effect on the premium charged for life insurance?

income

Insurance Companies have various sources of information about the insured. These are

all of the above

Anti-selection occurs

when person in poor health wish to buy insurance

In insurance, risk means

hazard on people’s lives

In an application, the information that must be disclosed include

every fact in his knowledge that is material to the insurance

In insurance, risks are classified as

standard, substandard and declined

A risk is considered substandard based on any or all of the following criteria:

occupation, moral character and family health history

A hazardous occupation could be defined as

all of the above

Statements in the application forms are

representations

An agent is filling up the Agent’s Confidential Report. What information must he put in his report?

all information he knows which are material to the application for insurance

Mr. Roel Reyes has been confined in a hospital 3 years prior to his application for insurance. He therefore needs to give the following information

name of attending doctor, diagnosis, date of confinement

Insurance companies have a source of confidential medical information on applicants for life insurance. This is the

medical impairment bureau

Insurance companies which are owned by the policy-owners are examples of

mutual companies

Stock companies are owned by

stockholders

Why is it important that the application is the basis of the policy?

because the completed application is the basis of the policy contract and the company may accept or reject an application based on the information given in the application

Which of the following statements is correct?

all information about a client or a prospective client has to be treated as confidential

Choose the incorrect statement: The entire contract between the policyowner and the insurance company include

any verbal statement made by the agent to the applicant

Life Insurance is

A cooperative risk-sharing plan

A life insurance company earns income from two main sources

premium income and investment income

The official who makes the necessary assumption and calculation in respect of the principal elements in life insurance premium in order to arrive at the premium rates to be charged is the

Actuary

The term “Loading” means

The difference between the gross and net premiums for the purpose of paying the insurance overhead expenses including commissions and taxes

Life Insurance can provide money when income stops because of

All of the above

The three elements that make up a life insurance premium are

Mortality experience, investment earnings, and operating expenses

If the insured dies during the grace period of an unpaid life insurance policy, the amount payable to the beneficiary is usually the

face amount of the policy minus the unpaid premiums

Which one of the following statements is correct?

an insurance agent’s license will be renewed when the commissioner is satisfied that the information in the application is accurate and all requirements are met

The insurance industry is under government regulations because

it affects public interest

Which one of the following statements is correct?

an agent is allowed to share commissions with another licensed agent or agents but with no one else

Which one of the following statements is correct?

rebating of premiums by an insurance agent is prohibited

Persuading a policy-owner, directly or indirectly, to surrender or lapse a policy in one company and replacing it with a policy in another company is

twisting

Interest is charged on policy loans

to replace investment income the insurer cannot earn since a loan has been granted

Rebating is

premium discrimination against policyholders

An insurance agent’s license can be revoked for

any or all of the above

One example covered under the ethical practices and procedures is

keep all policyholders information confidential

The term knocking means

making derogatory remarks about competing underwriters or companies

The following are unethical practices in the solicitation and procurement of insurance except

obtaining or attempting to obtain a license by fraud or misrepresentation

Twisting is

the replacement of a policy in one company with another policy in another company

The misstatement of facts by either of the parties of insurance to the other whether in writing or orally preliminary and in reference to making the insurance contract is

misrepresentation

Selling a person more insurance than what is warranted by his sources is called

overloading

An agent is prohibited from doing all the following except:

make complete comparisons of policies he sells and those offered by competing insurance companies

Inducing an insured to lapse or forfeit his insurance

is an offense in the great majority of cases

The suicide clause is in effect for

the first 2 years

The three non-forfeiture values in a permanent policy are

cash surrender value, paid value, extended term insurance

What are the basic settlement options?

fixed amount, fixed period, interest, fixed period and for life

In case of misstatement of age,

the amount of insurance is adjusted to the amount which the premium paid at the correct age would have purchased

Which of the following is a settlement option?

interest on insurance proceed

Name the provision in a permanent life insurance policy under which if the premiums are discontinued full insurance coverage will be maintained for a specified period.

extended term insurance

Which one of the following is not derived from the non-forfeiture values

dividends

Mr. Dela Cruz stated in his application that he was 30 years of age and a policy was issued to him on that basis. When he died twenty years later it was found out that, in fact, he was 34 years old at the time of his application. In conformity with the Insurance Code, the company

paid the amount of insurance payable to his beneficiary reduced in relation to his actual age at the time the contract was signed.

In the event that the policyowner elects the paid-up insurance option,

premiums cease and protection continues for a reduced amount.

If a policyowner commits suicide within one year, what’s the company’s liability?

the company would be liable for the payment of the premiums paid by the insured only.

Which of the non-forfeiture option gives the largest amount of protection?

extended term insurance

Any policy which has lapsed can be reinstated subject to normal conditions of proof of insurability within

three years

Benefits payable under health insurance policies cover

all of the above

With employer-employee groups, an employee does not fill out a personal application for insurance. Instead, he merely fills out

an enrollment card

In the event an employee leaves the company in which he is a member of its group insurance policy, his group coverage can be changed to an individual policy using the

conversion privilege

For a contract to be legal and binding,

parties to the contract must be legally competent

The insurance code specifies that a contract does not take effect unless

payment of the first premium is made to the insurer or its authorized agent

All of the following would be practicable to become beneficiaries except

someone who owes you money

Under the law pertaining to life insurance

any person with insurable interest can be named irrevocable beneficiaries

When the proceeds of a life insurance policy are left with the company to earn interest,

income tax is levied on the interest earnings of the proceeds

A person has insurable interest in the life of

all of the above

Anybody can be designated a beneficiary except:

those expressly prohibited by law to receive donations

100

The common practice of most life insurers is that the life insurance goes into force

when the agent gives a binding receipt

Plumbing Arithmetic Terms 5

ユーザ名非公開 · 68問 · 13日前

Plumbing Arithmetic Terms 5

68問 • 13日前

ユーザ名非公開

Practical Problems and Experiences 4

ユーザ名非公開 · 100問 · 13日前

Practical Problems and Experiences 4

100問 • 13日前

ユーザ名非公開

M#5: Principles of Leadership

ユーザ名非公開 · 37問 · 1ヶ月前

M#5: Principles of Leadership

37問 • 1ヶ月前

ユーザ名非公開

(Finals) Professional issues in Information Technology Mocktest BSIT 505

Xai Alexandrei Delos Reyes · 27問 · 1ヶ月前

(Finals) Professional issues in Information Technology Mocktest BSIT 505

27問 • 1ヶ月前

Xai Alexandrei Delos Reyes

anyo

anyo

competence 16

competence 16

competence 16

competence 16

政治・経済　年号

めあちゃん · 20回閲覧 · 97問 · 2ヶ月前

政治・経済　年号

20回閲覧 • 97問 • 2ヶ月前

めあちゃん

bbme

Desa Mae Santiago · 22問 · 2ヶ月前

bbme

22問 • 2ヶ月前

Desa Mae Santiago

(Pre-Finals) Enterprise Architecture Mocktest BSIT 505

Xai Alexandrei Delos Reyes · 42問 · 2ヶ月前

(Pre-Finals) Enterprise Architecture Mocktest BSIT 505

42問 • 2ヶ月前

Xai Alexandrei Delos Reyes

(Pre-Finals) ASIA Mocktest BSIT 505

Xai Alexandrei Delos Reyes · 44問 · 2ヶ月前

(Pre-Finals) ASIA Mocktest BSIT 505

44問 • 2ヶ月前

Xai Alexandrei Delos Reyes

(Pre-Finals) Advanced Database Systems Mocktest BSIT 505

Xai Alexandrei Delos Reyes · 72問 · 2ヶ月前

(Pre-Finals) Advanced Database Systems Mocktest BSIT 505

72問 • 2ヶ月前

Xai Alexandrei Delos Reyes

complete

complete

scoops test 7brew

scoops test 7brew

BBMEI OPERATION

Desa Mae Santiago · 33問 · 3ヶ月前

BBMEI OPERATION

33問 • 3ヶ月前

Desa Mae Santiago

BBME MOTIVATION

Desa Mae Santiago · 26問 · 3ヶ月前

BBME MOTIVATION

26問 • 3ヶ月前

Desa Mae Santiago

Property and Casualty Insurance Basics Quiz 5

ユーザ名非公開 · 15問 · 3ヶ月前

Property and Casualty Insurance Basics Quiz 5

15問 • 3ヶ月前

ユーザ名非公開

Property and Casualty Insurance Basics Quiz 4

ユーザ名非公開 · 15問 · 3ヶ月前

Property and Casualty Insurance Basics Quiz 4

15問 • 3ヶ月前

ユーザ名非公開

IMB 4/4

Lorenzo Cokee · 8問 · 3ヶ月前

IMB 4/4

8問 • 3ヶ月前

Lorenzo Cokee

IMB 3/4

Lorenzo Cokee · 10問 · 3ヶ月前

IMB 3/4

10問 • 3ヶ月前

Lorenzo Cokee

問題一覧

A single premium policy means a policy

under which only one premium payment is required

A fixed amount added to the premium of a given policy regardless of policy size is known as

policy fee

To be able to calculate the required premiums for a given policy, the agent must know the applicant's

all of the above

To calculate premiums for the other modes of premium payment, the annual premium is

multiplied by a conversion factor for the mode of payment desired

A father enters into a life insurance contract on behalf of his child. In this case, the father is the

applicant-owner

The convertible feature of a term insurance policy provides that the policy may be

changed to a permanent insurance policy without evidence of insurability

Within two years of buying a life insurance policy, you are accidentally killed when your car hits a tree. In these circumstances, the insurance company will

pay the face amount

When explaining dividends, the following information must be supplied

that they are not guaranteed

Part of the premium paid by a policyholder is invested by the insurance company. In premium computation, this factor is known as

interest

The parties involved in a life insurance contract are the

insurance company and insured

The fundamental advantage of the use of insurance as a means of meeting economic losses is that through insurance, these losses are

Spread over a large number of people

Life Insurance contributes directly to the welfare and progress of the country by

All of the above

The number of years that persons at a given age will live on the average as shown by the mortality table is called

Life expectancy

An insurance plan which offers protection and savings is calle

permanent plan

A man with moderate means can have maximum protection possible through

Term insurance

Mr. Juan Valdez wants a policy which will entitle him to receive dividends yearly. What will you recommend to Mr. Valdez?

participating plans

Which of the following can give the longest protection?

Ordinary life

An individual at age 35 purchases a policy under which he will in 20 years receive the face amount of the policy himself, if he is still alive at that date. This policy is obviously a

20 yr. endowment

In a 20 life policy,

protection is until age 100, payment of premiums is for 20 years

A participating plan entitles the policyowner to receive a return of excess premiums. Such is termed as:

dividends

Mrs. Rose Cortez owns a policy which does not provide for the build up of cash values and whose premiums remain level. Mrs. Cortez owns:

level term

Two attractive features of a term insurance are:

convertibility and renewability

A term insurance which allows the policyowners to convert it to a permanent insurance within a specified period without evidence of insurability contains ________ feature:

convertibility

A term policy only offers

protection

The main difference between a term plan and a permanent plan is

permanent plans provide both protection and savings while term plans offer protection only

The savings element of permanent plans allows for the build up of

cash values

A term rider is

a term insurance added to a permanent plan

An optional rider which can be attached to a policy stopping further premium payments in the event of disability is called

waiver of premium

For the waiver of premium to be effective,

both answers are correct

Disability benefits are not paid

for self-inflicted injuries

Mr. Pedro Cruz became paralyzed as a result of jumping out of the window in an attempt to commit suicide. Under the usual provisions of a disability income policy, he would be entitled to

receive neither disability income nor waiver of premiums

A person wanting a greater coverage for the least amount of premium has an option of attaching what rider in his permanent life policy?

term insurance rider

One supplementary benefit offered is a payor’s benefit which is intended

to provide a waiver of premium benefit in the event of death or disability of the person paying the premiums

If an insured is disabled and his life insurance policy is being continued in force through the waiver of premium, the dividends of the policy would

continue as if the owner is paying the premium

A policy with a minor as the proposed insured is called

juvenile policy

Life insurance policies for which higher than standard premium rates are payable are said to be

rated policies

Since the purchase of life insurance is a voluntary choice, the individual must meet

certain standards of health and occupation

Which of the following factors would have the least effect on the premium charged for life insurance?

income

Insurance Companies have various sources of information about the insured. These are

all of the above

Anti-selection occurs

when person in poor health wish to buy insurance

In insurance, risk means

hazard on people’s lives

In an application, the information that must be disclosed include

every fact in his knowledge that is material to the insurance

In insurance, risks are classified as

standard, substandard and declined

A risk is considered substandard based on any or all of the following criteria:

occupation, moral character and family health history

A hazardous occupation could be defined as

all of the above

Statements in the application forms are

representations

An agent is filling up the Agent’s Confidential Report. What information must he put in his report?

all information he knows which are material to the application for insurance

Mr. Roel Reyes has been confined in a hospital 3 years prior to his application for insurance. He therefore needs to give the following information

name of attending doctor, diagnosis, date of confinement

Insurance companies have a source of confidential medical information on applicants for life insurance. This is the

medical impairment bureau

Insurance companies which are owned by the policy-owners are examples of

mutual companies

Stock companies are owned by

stockholders

Why is it important that the application is the basis of the policy?

because the completed application is the basis of the policy contract and the company may accept or reject an application based on the information given in the application

Which of the following statements is correct?

all information about a client or a prospective client has to be treated as confidential

Choose the incorrect statement: The entire contract between the policyowner and the insurance company include

any verbal statement made by the agent to the applicant

Life Insurance is

A cooperative risk-sharing plan

A life insurance company earns income from two main sources

premium income and investment income

The official who makes the necessary assumption and calculation in respect of the principal elements in life insurance premium in order to arrive at the premium rates to be charged is the

Actuary

The term “Loading” means

The difference between the gross and net premiums for the purpose of paying the insurance overhead expenses including commissions and taxes

Life Insurance can provide money when income stops because of

All of the above

The three elements that make up a life insurance premium are

Mortality experience, investment earnings, and operating expenses

If the insured dies during the grace period of an unpaid life insurance policy, the amount payable to the beneficiary is usually the

face amount of the policy minus the unpaid premiums

Which one of the following statements is correct?

an insurance agent’s license will be renewed when the commissioner is satisfied that the information in the application is accurate and all requirements are met

The insurance industry is under government regulations because

it affects public interest

Which one of the following statements is correct?

an agent is allowed to share commissions with another licensed agent or agents but with no one else

Which one of the following statements is correct?

rebating of premiums by an insurance agent is prohibited

Persuading a policy-owner, directly or indirectly, to surrender or lapse a policy in one company and replacing it with a policy in another company is

twisting

Interest is charged on policy loans

to replace investment income the insurer cannot earn since a loan has been granted

Rebating is

premium discrimination against policyholders

An insurance agent’s license can be revoked for

any or all of the above

One example covered under the ethical practices and procedures is

keep all policyholders information confidential

The term knocking means

making derogatory remarks about competing underwriters or companies

The following are unethical practices in the solicitation and procurement of insurance except

obtaining or attempting to obtain a license by fraud or misrepresentation

Twisting is

the replacement of a policy in one company with another policy in another company

The misstatement of facts by either of the parties of insurance to the other whether in writing or orally preliminary and in reference to making the insurance contract is

misrepresentation

Selling a person more insurance than what is warranted by his sources is called

overloading

An agent is prohibited from doing all the following except:

make complete comparisons of policies he sells and those offered by competing insurance companies

Inducing an insured to lapse or forfeit his insurance

is an offense in the great majority of cases

The suicide clause is in effect for

the first 2 years

The three non-forfeiture values in a permanent policy are

cash surrender value, paid value, extended term insurance

What are the basic settlement options?

fixed amount, fixed period, interest, fixed period and for life

In case of misstatement of age,

the amount of insurance is adjusted to the amount which the premium paid at the correct age would have purchased

Which of the following is a settlement option?

interest on insurance proceed

Name the provision in a permanent life insurance policy under which if the premiums are discontinued full insurance coverage will be maintained for a specified period.

extended term insurance

Which one of the following is not derived from the non-forfeiture values

dividends

paid the amount of insurance payable to his beneficiary reduced in relation to his actual age at the time the contract was signed.

In the event that the policyowner elects the paid-up insurance option,

premiums cease and protection continues for a reduced amount.

If a policyowner commits suicide within one year, what’s the company’s liability?

the company would be liable for the payment of the premiums paid by the insured only.

Which of the non-forfeiture option gives the largest amount of protection?

extended term insurance

Any policy which has lapsed can be reinstated subject to normal conditions of proof of insurability within

three years

Benefits payable under health insurance policies cover

all of the above

With employer-employee groups, an employee does not fill out a personal application for insurance. Instead, he merely fills out

an enrollment card

In the event an employee leaves the company in which he is a member of its group insurance policy, his group coverage can be changed to an individual policy using the

conversion privilege

For a contract to be legal and binding,

parties to the contract must be legally competent

The insurance code specifies that a contract does not take effect unless

payment of the first premium is made to the insurer or its authorized agent

All of the following would be practicable to become beneficiaries except

someone who owes you money

Under the law pertaining to life insurance

any person with insurable interest can be named irrevocable beneficiaries

When the proceeds of a life insurance policy are left with the company to earn interest,

income tax is levied on the interest earnings of the proceeds

A person has insurable interest in the life of

all of the above

Anybody can be designated a beneficiary except:

those expressly prohibited by law to receive donations

100

The common practice of most life insurers is that the life insurance goes into force

when the agent gives a binding receipt