INSURANCE TEST

100問 • 2年前

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問題一覧

How are surrender charges deducted in a life policy with a rear-end loaded provision?

deducted when the policy is discontinued

A term life rider offers the insured:

additional life coverage

When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n):

exlusion

L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the Misstatement of Age provision, the insurer will:

adjust the death benefit to a reduced amount

The consideration clause in a life insurance contract contains what pertainet information?

amount of premium payments and when they are due

Whose life is covered on a life insurance policy that contains a payor benefit clause?

child

S buys a $50,000 whole life policy with a $50,000 Accidental Death and Dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the beneficiary

$50,000

All of these statements about the Waiver of Premium provision are correct EXCEPT:

Insured must be eligible for Social Security disability for claim to be accepted

N is a student pilot with a large life insurance policy. Which of these features would limit the insurer’s obligation in the event N was killed while flying as a student pilot?

exclusion

A long term care rider in life insurance policy pays a daily benefit in the event of which of the following?

inability of the insured to preform more than 2 Activities of Daily Living

K’s whole life insurance policy lapsed 2 months ago due to nonpayment. She would now like to reinstate the policy all of these statements are correct about the policy’s reinstatement EXCEPT:

K will forfeit the right to use automatic loan provision upon reinstatement

All of these statements concerning Settlement Options are true, EXCEPT:

only the beneficiary may select

Which provision prevents an insurer from changing the terms of the contract with the policy owner by referring to documents not found within the policy itself?

entire contract provision

A policy loan is made possible by which of these life insurance policy features?

cash value provision

Which of the following statements is CORRECT about accelerated death benefits?

must have a terminal illness to qualify

Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it?

decreasing term

A return of premium life insurance policy is:

whole life and increasing term

All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured’s death, EXCEPT:

interest only

What action will an insurer take if an interest payment on a policy loan is not made on time?

automatically add the amount of interest due to the loan balance

The free-look provision begins:

upon the receipt of the policy by the policy owner

Which of the following Nonforfeiture options offers the highest death benefit

extended term

The free-look provision begins:

upon the receipt of the policy by the policy owner

In a Life Insurance contract, an insurance company’s promise to pay stated benefits is called the:

insuring clause

An insurer may normally delay the payment of a cash value loan or surrender value for up to:

6 months

A policy owner may generate taxable income from which of the following dividend options

accumulation at interest

When is the face amount of a whole life policy paid?

when the insured dies or at the policy’s maturity date, whichever happens first

All of the following statements are true regarding a policys Grace Period, EXCEPT:

past due premiums are waived

An insured is past due on his life insurance premium, but is still within the grace period. What will the beneficiary receive if the insured dies during this grace period?

full face amount minus any past due premiums

D owns a Whole Life policy that was purchased 10 years ago. If the premium payments suddenly stop and D takes no additional action, which Nonforfeiture Option will the insurer likely proceed with?

extended term

When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take?

void the policy only if it is discovered during the Contestable period and proven to be material

Which of the following provisions guaranteed that premiums will be waived if a Juvenile life policy owner becomes disabled?

payor clause

What benefits does the payor on a Juvenile life policy provide?

premiums are waived if the payor becomes diabled

The accelerated death benefit provision in a life insurance policy is also known as a(n):

living benefit

A policy owners rights are limited under which beneficiary designation?

irrevocable

Which of these is NOT an element of life insurance premiums?

morbidity rate

If the insured and primary beneficiary are both killed int he same accident wand it can not be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act?

insureds contingent beneficiary

A policyowner is able to choose the frequency of premium payments through what policy feature?

premium mode

Who has the right to change a revocable beneficiary?

policy owner

T is the policy owner for a life insurance policy with an irrevocable beneficiary designation. If T wishes to change the beneficiary, T must obtain permission from the ________

beneficiary

J chooses a monthly premium payment mode of the whole life insurance policy. Which of these statements is CORRECT?

the gross premium is higher on a monthly payment mode as compared to being annually paid

A level premium indicates:

the premium is fixed for the entire duration of the contract

When can a policy owner change a revocable beneficiary?

anytime

A policy owner would like to change the beneficiary on a life insurance policy and make the change permanent. Which type of designation would fulfill this need?

irrevocable

Which of the following statements is CORRECT regarding the tax treatment of a lump-sum payment paid to a life insurance policy’s primary beneficiary?

all proceeds are income tax free in the year they are received

Which statement is true regarding a minor beneficiary?

normally, a guardian is required to be appointed in the beneficiary clause of the contract

Which type of life insurance beneficiary requires his or her consent when a change of beneficiary is attempted by the policy owner?

irrevocable beneficiary

What is the underlying concept regarding level premiums?

the early years are charged more than what is needed

On a life insurance policy, who is qualified to chang het beneficiary designation?

policy owner

Quarterly premium payments increase the annual cost of insruance because:

interest to the isnurer is decreased while the administrative costs are increased

A whole life insurance policy owner does not wish to continue making premium payments. Which of the following enables the policy owner to sell the policy for more than its cash value?

life settlement contract

T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?

request of the change will be refused

A policy owner is allowed to pay premiums more than once a year under which provision?

mode of premium

K has a life insurance policy where her husband is beneficiary and her daughter is a contingent beneficiary. Under the common disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed?

daughter

______ of a persona life insurance premium is usually deductible for federalal income tax purposes

How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy?

if the primary beneficiary dies before the insured

Which statement regarding the Change of Beneficiary provision is true?

the policy owner can change the beneficiary

J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used?

revocable

K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in fatal accident where K dies before P. Under the Common Disaster provision, which the statements is true?

proceeds will be payable to K’s estate if P dies within a specific time

Which of these terms accurately defines an underwriters assessment of information on a life insurance application?

risk clarification

All of these are considered sources of underwriting information about an applicaiton, EXCEPT:

rating services

Which factors are taken into consideration when an insurance company determines the premium rate for a whole life policy on an applicant?

risk classification

When an insurance application is taken by a producer, which of these statements is true?

any changes made on the applicaiton require the applicants initials

Q applied for life insurance and submitted the initial premium on Jan 1. The policy was issued on Feb 1, but it was not delivered by the agent until Feb 7. Q is dissatisfied and returns the policy Feb 13. How will the insurer handle this situation?

policy was refunded within hte free-look period, premium will be fully refunded

At what time must a policy owner have insurable interest on the insured in order for the life policy to be valid?

at the time of the application

When does a life insurance contract become effective if the initial premium is NOT collected during the applicaiton process?

when producer delivers policy and collects initial premium

A $20,000 life insurance policy applicaiton is completed, however the producer does NOT collect the initial premium. At what point does the coverage go into effect?

when the applicant receives the policy and pays the initial premium

Why is an applicants signature required on a life insurance applicaiton?

to attest that the statements on the applicaiton are accurate to the best of the applicants knowledge

The entity whose sole purpose is sharing medical data among its member companies is called the ______

medical information bureau (MIB)

What is the initial source of underwriting for an insurance policy?

applicaiton containing statements from the insured

Which of these do NOT constitute policy delivery?

policy issued with a rating

Who is NOT required to sign a life insurance application?

beneficiary

K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective?

the date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured

All are true statements regarding the underwriting process, EXCEPT:

AIDS and HIV virus exams can be conducted in discriminatory fashion

If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?

contributory

What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?

conversion

What type of group insurance plan involves employees sharing the cost?

contributory plan

Which requirement must be met for an association to be eligible for a group life plan?

group was formed for a purpose other than acquiring insurance

If a corporation pays the premium on a group life policy for its employees, the corporation its required to report how much additional taxable income for each employee?

nothing

S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?

full benefits are payable under the master contract

Which provision is NOT a requirement in a group life policy?

accidental

Under a trustee group life policy, who would be eligible for a certificate of coverage?

employee

When an employee is terminated, which statement about a group term life conversion is true?

policy proceeds will be paid if the employee dies during the conversion period

All individuals covered under a group contract will receive a(n) ______

certificate

Which of these is an element of a single premium annuity?

lump-sum payment

P is a 40-year old woman and would like to purchase an annuity that will provide a lifetime income stream beginning at age 60. Which fo hte following did she NOT buy?

an immediate annuity

An individual who purchases a life annuity is given protection against:

the risk of living longer than expected

How does an indexed annuity differ from a fixed annuity?

indexed annuity owners may receive credited interest tied to the fluctuations of the linked index

Which type of contract liquidates an estate through recurrent payments?

annuity

S recently received a $500,000 lump-sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation?

single premium

K is an annuitant currently receiving payments. If she were to die before receiving payments equal tot he correct value, a beneficiary will continue receiving payments until an amount equal to the contract value has been paid. This is called a(n):

installment refund annually

N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase?

fixed deferred

A contract owner terminates an annuity before the income payment period beings. The owner will then receive:

the current contract surrender value

All of the following statements regarding a Tax Sheltered Annuity (TSA) are true EXCEPT:

contributions to the TSA are tax-deductible

What is considered to be a characteristic of an immediate annuity?

benefit payments start within one payment period of purchase

T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life Annuity. What will this transaction provide?

income that cannot be outlived by the owner

A Variable Annuity has which of the following characteristics?

underlying equity investments

All of the following statements required a Tax Sheltered Annuity (TSA) are true EXCEPT:

income derived from the TSA is received income tax free

Which type of contract liquidates an estate through recurrent payments?

annuity

What type of annuity has a cash value that is based upon the performance of its underlying investment funds?

variable

100

What is the basic function of an annuity?

the systematic liquidation of accumulated funds

insurance test

insurance test

insurance test

insurance test

insurance test

insurance test

問題一覧

How are surrender charges deducted in a life policy with a rear-end loaded provision?

deducted when the policy is discontinued

A term life rider offers the insured:

additional life coverage

When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n):

exlusion

adjust the death benefit to a reduced amount

The consideration clause in a life insurance contract contains what pertainet information?

amount of premium payments and when they are due

Whose life is covered on a life insurance policy that contains a payor benefit clause?

child

S buys a $50,000 whole life policy with a $50,000 Accidental Death and Dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the beneficiary

$50,000

All of these statements about the Waiver of Premium provision are correct EXCEPT:

Insured must be eligible for Social Security disability for claim to be accepted

N is a student pilot with a large life insurance policy. Which of these features would limit the insurer’s obligation in the event N was killed while flying as a student pilot?

exclusion

A long term care rider in life insurance policy pays a daily benefit in the event of which of the following?

inability of the insured to preform more than 2 Activities of Daily Living

K’s whole life insurance policy lapsed 2 months ago due to nonpayment. She would now like to reinstate the policy all of these statements are correct about the policy’s reinstatement EXCEPT:

K will forfeit the right to use automatic loan provision upon reinstatement

All of these statements concerning Settlement Options are true, EXCEPT:

only the beneficiary may select

Which provision prevents an insurer from changing the terms of the contract with the policy owner by referring to documents not found within the policy itself?

entire contract provision

A policy loan is made possible by which of these life insurance policy features?

cash value provision

Which of the following statements is CORRECT about accelerated death benefits?

must have a terminal illness to qualify

Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it?

decreasing term

A return of premium life insurance policy is:

whole life and increasing term

All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured’s death, EXCEPT:

interest only

What action will an insurer take if an interest payment on a policy loan is not made on time?

automatically add the amount of interest due to the loan balance

The free-look provision begins:

upon the receipt of the policy by the policy owner

Which of the following Nonforfeiture options offers the highest death benefit

extended term

The free-look provision begins:

upon the receipt of the policy by the policy owner

In a Life Insurance contract, an insurance company’s promise to pay stated benefits is called the:

insuring clause

An insurer may normally delay the payment of a cash value loan or surrender value for up to:

6 months

A policy owner may generate taxable income from which of the following dividend options

accumulation at interest

When is the face amount of a whole life policy paid?

when the insured dies or at the policy’s maturity date, whichever happens first

All of the following statements are true regarding a policys Grace Period, EXCEPT:

past due premiums are waived

An insured is past due on his life insurance premium, but is still within the grace period. What will the beneficiary receive if the insured dies during this grace period?

full face amount minus any past due premiums

D owns a Whole Life policy that was purchased 10 years ago. If the premium payments suddenly stop and D takes no additional action, which Nonforfeiture Option will the insurer likely proceed with?

extended term

When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take?

void the policy only if it is discovered during the Contestable period and proven to be material

Which of the following provisions guaranteed that premiums will be waived if a Juvenile life policy owner becomes disabled?

payor clause

What benefits does the payor on a Juvenile life policy provide?

premiums are waived if the payor becomes diabled

The accelerated death benefit provision in a life insurance policy is also known as a(n):

living benefit

A policy owners rights are limited under which beneficiary designation?

irrevocable

Which of these is NOT an element of life insurance premiums?

morbidity rate

insureds contingent beneficiary

A policyowner is able to choose the frequency of premium payments through what policy feature?

premium mode

Who has the right to change a revocable beneficiary?

policy owner

T is the policy owner for a life insurance policy with an irrevocable beneficiary designation. If T wishes to change the beneficiary, T must obtain permission from the ________

beneficiary

J chooses a monthly premium payment mode of the whole life insurance policy. Which of these statements is CORRECT?

the gross premium is higher on a monthly payment mode as compared to being annually paid

A level premium indicates:

the premium is fixed for the entire duration of the contract

When can a policy owner change a revocable beneficiary?

anytime

A policy owner would like to change the beneficiary on a life insurance policy and make the change permanent. Which type of designation would fulfill this need?

irrevocable

Which of the following statements is CORRECT regarding the tax treatment of a lump-sum payment paid to a life insurance policy’s primary beneficiary?

all proceeds are income tax free in the year they are received

Which statement is true regarding a minor beneficiary?

normally, a guardian is required to be appointed in the beneficiary clause of the contract

Which type of life insurance beneficiary requires his or her consent when a change of beneficiary is attempted by the policy owner?

irrevocable beneficiary

What is the underlying concept regarding level premiums?

the early years are charged more than what is needed

On a life insurance policy, who is qualified to chang het beneficiary designation?

policy owner

Quarterly premium payments increase the annual cost of insruance because:

interest to the isnurer is decreased while the administrative costs are increased

A whole life insurance policy owner does not wish to continue making premium payments. Which of the following enables the policy owner to sell the policy for more than its cash value?

life settlement contract

T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?

request of the change will be refused

A policy owner is allowed to pay premiums more than once a year under which provision?

mode of premium

daughter

______ of a persona life insurance premium is usually deductible for federalal income tax purposes

How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy?

if the primary beneficiary dies before the insured

Which statement regarding the Change of Beneficiary provision is true?

the policy owner can change the beneficiary

J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used?

revocable

proceeds will be payable to K’s estate if P dies within a specific time

Which of these terms accurately defines an underwriters assessment of information on a life insurance application?

risk clarification

All of these are considered sources of underwriting information about an applicaiton, EXCEPT:

rating services

Which factors are taken into consideration when an insurance company determines the premium rate for a whole life policy on an applicant?

risk classification

When an insurance application is taken by a producer, which of these statements is true?

any changes made on the applicaiton require the applicants initials

policy was refunded within hte free-look period, premium will be fully refunded

At what time must a policy owner have insurable interest on the insured in order for the life policy to be valid?

at the time of the application

When does a life insurance contract become effective if the initial premium is NOT collected during the applicaiton process?

when producer delivers policy and collects initial premium

A $20,000 life insurance policy applicaiton is completed, however the producer does NOT collect the initial premium. At what point does the coverage go into effect?

when the applicant receives the policy and pays the initial premium

Why is an applicants signature required on a life insurance applicaiton?

to attest that the statements on the applicaiton are accurate to the best of the applicants knowledge

The entity whose sole purpose is sharing medical data among its member companies is called the ______

medical information bureau (MIB)

What is the initial source of underwriting for an insurance policy?

applicaiton containing statements from the insured

Which of these do NOT constitute policy delivery?

policy issued with a rating

Who is NOT required to sign a life insurance application?

beneficiary

the date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured

All are true statements regarding the underwriting process, EXCEPT:

AIDS and HIV virus exams can be conducted in discriminatory fashion

If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?

contributory

What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?

conversion

What type of group insurance plan involves employees sharing the cost?

contributory plan

Which requirement must be met for an association to be eligible for a group life plan?

group was formed for a purpose other than acquiring insurance

If a corporation pays the premium on a group life policy for its employees, the corporation its required to report how much additional taxable income for each employee?

nothing

S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?

full benefits are payable under the master contract

Which provision is NOT a requirement in a group life policy?

accidental

Under a trustee group life policy, who would be eligible for a certificate of coverage?

employee

When an employee is terminated, which statement about a group term life conversion is true?

policy proceeds will be paid if the employee dies during the conversion period

All individuals covered under a group contract will receive a(n) ______

certificate

Which of these is an element of a single premium annuity?

lump-sum payment

P is a 40-year old woman and would like to purchase an annuity that will provide a lifetime income stream beginning at age 60. Which fo hte following did she NOT buy?

an immediate annuity

An individual who purchases a life annuity is given protection against:

the risk of living longer than expected

How does an indexed annuity differ from a fixed annuity?

indexed annuity owners may receive credited interest tied to the fluctuations of the linked index

Which type of contract liquidates an estate through recurrent payments?

annuity

single premium

installment refund annually

N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase?

fixed deferred

A contract owner terminates an annuity before the income payment period beings. The owner will then receive:

the current contract surrender value

All of the following statements regarding a Tax Sheltered Annuity (TSA) are true EXCEPT:

contributions to the TSA are tax-deductible

What is considered to be a characteristic of an immediate annuity?

benefit payments start within one payment period of purchase

T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life Annuity. What will this transaction provide?

income that cannot be outlived by the owner

A Variable Annuity has which of the following characteristics?

underlying equity investments

All of the following statements required a Tax Sheltered Annuity (TSA) are true EXCEPT:

income derived from the TSA is received income tax free

Which type of contract liquidates an estate through recurrent payments?

annuity

What type of annuity has a cash value that is based upon the performance of its underlying investment funds?

variable

100

What is the basic function of an annuity?

the systematic liquidation of accumulated funds