RMI 211 Final Exam Practice Questions and
Answers (100% Pass)
A contingent beneficiary in a life insurance policy has the right to: -
Answer✔️✔️-receive the policy proceeds if the primary beneficiary dies
before the insured
A legal reserve in life insurance is a result of: - Answer✔️✔️-excess
premiums in the early policy years being invested at compound interest.
All of the following are nonforfeiture options found in cash value life
insurance EXCEPT:
Cash Value
Reduced Paid-Up Insurance
Extended Term Insurance
Reduction of Premiums - Answer✔️✔️-reduction of premiums
Under the waiver of premium provisions, if an insured becomes disabled:
1. premiums are continued to be paid by the insurance company on behalf
of the insured
2. premiums paid by the insured are waived by the insurance company -
Answer✔️✔️-2. only
Ann is considering the purchase of a life insurance policy with these
characteristics: flexible premium payments, the insurance and savings
components are separate, the interest rate credited to the cash value is tied
to a changing market interest rate but a minimum interest rate is
guaranteed, and a monthly administrative fee is charged. Ann is
considering buying: - Answer✔️✔️-universal life insurance
Becky is considering the purchase of a whole life policy on her own life.
She is concerned that if she becomes disabled, paying premiums will
become a burden. Which provision can Becky attach to her life insurance
policy to address this concern? - Answer✔️✔️-waiver-of-premium provision
All of the following statements about ordinary life insurance are true
EXCEPT:
There is a build-up of cash value that can be borrowed by the policyholder.
It offers the policyholder the flexibility to meet a wide variety of financial
objectives.
Premiums are level throughout the policy period.
The face amount of the policy is paid if the insured lives to age 65. -
Answer✔️✔️-The face amount of the policy is paid if the insured lives to age
65.
All of the following statements about the conversion of a term policy are
true EXCEPT:
Under an attained age conversion, the premium is based on the insured's
attained age at the time of conversion.
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller SophiaBennett. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.