Life Insurance EXAMS BUNDLE | Questions with Correct Verified Answers

Which of the following is NOT an essential element of an insurance contract? A) Agreement B) Legal Purpose C) Counteroffer D) Consideration - ANSWER Counteroffer Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on part...

Concerning AIDS and HIV risks, all of the following acts may subject an insurer to liability claims or fines EXCEPT - ANSWER a. Disclosing test results to third party without applicant's consent. b. Requiring applicant to pay for HIV test in order to be underwritten. **c. Declining applicant for...

an insured owns a 50000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently 20,000. what would be the face amount of the new term policy - ANSWER 50,000 all of the following are characteristi...

There is a 10% penalty on the taxable portion of a deferred annuity when it is surrendered prior to what age? - ANSWER 59 1/2 Gross premium for a life insurance policy is determined by adding which to components - ANSWER Net premium and expenses An annuity would normally be purchased by an indiv...

Additional coverage can be added to a Whole Life policy by adding a(n) - ANSWER decreasing term rider All of these statements about the Waiver of Premium provision are correct EXCEPT - ANSWER Insured must be eligible for Social Security disability for claim to be accepted Which of these is an el...

The key factor of representation that allows the intraparty to resend the contract is - ANSWER If the representation is false any marital point The written instrument in which a contract of insurance is set forth is known as - ANSWER A policy What is the term for a sale campaign conducted throug...