Life Insurance Exam Questions & 100% Correct Answers- Latest Test | Graded A+ | Passed- Arizona

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant and t submit a medical exam. If the policy was issued, what would be the policy's effective date? A. The date of policy delivery B. The date of t...

The Commissioner conducts an examination of a domestic insurer and believes that the costs of examination places an unreasonable financial burden on the insurer. Which of the following will happen? a. The federal government will absorb the full cost b. The federal government will absorb part ...

The policyowner of a Universal Life policy may skip paying the premium and the policy will not lapse as long as a. the next month's premium is sufficient to cover both the current premium amount and the skipped amount b. the policy contains sufficient cash value to cover the cost of insurance...

A Whole Life policy furnishes a form of Permanent protection because it never has to be: A. Used for a loan B. Reduced C. Renewed or converted D. Reinstated -:- Renewed or converted At age 30, Clark wishes to purchase a W.L policy. His producer explains that he can pay for the policy in man...

In a fixed annuity, which of the folllowing is true regarding the guaranteed interest rate on the investment ? -:- the annuitant will recieve the higher of either the guaranteed minimum rate or current rate All of the following are factors that an underwriter coukd use to select and classify ...

Which nonforfeiture option provides coverage for the longest period of time? A. Paid-up option B. Accumulated at interest C. Reduced paid-up D. Extended term -:- C. Reduced paid-up Which of the following is true about the premium on the children's rider in a life insurance policy? A. It r...

Over the course of a year, which premium payment mode is most expensive? Monthly Quarterly Semi-Annually Annually -:- Monthly Sharon is the policyowner of a $50,000 life insurance policy. Her son, Mike, is the beneficiary. If Sharon MUST obtain Mike's signature in order to change the benef...

Which will be included in a policy summary? -:- Premium amounts and surrender values Why should the producer personally deliver the policy when the first premium has already been paid? -:- To help the insured understand all aspects of the contract An insurance contract requires that both the...

How to determine the accumulation value of a deferred annuity? -:- Premiums paid + interest earned - expenses and withdrawals Which of the following entities does NOT establish regulations for variable insurance products? -:- State attorney general Annuity contract may be returned for a full...

With respect to third-party ownership of life insurance in the personal insurance market, all the following statements are true EXCEPT: -:- The insured has the right to name the beneficiary. When do funds in a deferred annuity become the owner's property? -:- They are nonforfeitable and alwa...

A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as -:- survivor protection Under what circumstances may a life insurance agent deliver a policy that is dated ...

The tendency of a person diagnosed with a serious illness to try to buy life or health insurance is known as: -:- adverse selection From an insurance perspective, underwriting is best defined as: -:- the process of determining if an applicant is an insurable risk A person who refuses to enga...

A ______________ insurance company is owned by its policyholders. a. Stock b. Reciprocal c. Fraternal Benefits Society d. Mutual -:- D Its members, also called policyholders, own a mutual insurance company. Which of the following is an insurance company that is organized under the laws of an...

All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT -:- The policy is owned by the company Which of the following options best depicts how the eligibility of members for group health insurance is determined? -:- By conditions of the ...

A producer takes applications from identical twins who want to buy the same type of policy in the same amount. The insurer issues the policies as applied for, but charges a 25 percent higher premium for one of the policies. The difference in premiums is probably due to which of the following f...

Which of the following is correct about life insurance benefits? -:- Benefits designated for a named beneficiary cannot be touched by the insured's creditors. A worker can receive Social Security Disability if he or she: -:- is at least currently insured and totally disabled. Variable Unive...

which approach considers the future needs of the survivors in determining amounts of life insurance? -:- human life value approach what is insurable interest required? -:- at time of application which of the following is not an illegal document? -:- giving the insured an article of merchan...

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? a) Adhesion b) Subrogation c) Warranty d) Aleatory -:- Aleatory An insurance contract is an aleatory contract in that it requir...

If a retirement plan or annuity is "qualified," this means -:- It has favorable tax treatment If an insurer makes a statement that is policies are guarantee by the existence of the Insurance guaranty association, that would be considered... -:- An unfair trade practice What type of life in...

Life insurance replacement regulation is designed to protect the interests of the _____ -:- policy owner Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance compant? -:- Annuity Characteristics of an Adjustable Life policy -:- Adju...

A closed network plan offers a primary physician copay of $25. If a subscriber chooses a primary care physician outside of the network the subscriber will likely pay -:- 100% of the billed amount The fair credit reporting act protects consumers -:- with guidelines regarding credit reporting a...

all of the following are standard exclusions found in most policies, Except -:- Military service which statement about death benefits paid to a beneficiary under a group life insurance plan is NOT correct? -:- They are fully tax exempt insurers often set childrens term rider limits on the ba...

Which health insurance contract provision addresses the problem of over insurance? -:- Coordination of Benefits Which health provision protects an insured from the expense of a catastrophic illness? -:- Stop-Loss Which of the following statements concerning the usual coordination of benefits p...

What are residual disability income insurance payments based on? -:- The amount of the insured's income is reduced by the disability The CA insurance code requires that an insurer must have enough assets to cover its liabilities and for reinsurance of all outstanding risks. To remain solvent, ...

The net profit of an insurer, less any dividends paid out, is known as their: -:- Earned surplus A non-taxable refund of premium that may be returned to a policyowner by an insurance company under a participating life insurance policy is known as a: -:- Dividend The chance of loss without an...

How does a continuous premium whole life policy differ from a limited pay whole life policy? A. The time period in which premiums will be paid B. The availability of cash value loans C. The availability of nonforfeiture options D. The settlement options -:- A. The time period in which premiu...

An arrangement where an individual is authorized to act on behalf of another person or company is established through -:- the law of agency The powers directly given to a producer in an agency contract are called -:- express An insurance application requires an applicant to make a full, accur...