LLQP PRACTICE EXAM 2024 NEWEST ACTUAL EXAM 150 QUESTIONS AND DETAILED CORRECT ANSWERS WITH RATIONALES ALREADY GRADED A.pdf
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LLQP
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LLQP
At what point must a life insurance applicant be informed of their rights that fall under the Fair
Credit Reporting Act? - ANSWER>>Upon completion of the application
A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a - ANS...
llqp practice exam 2024 newest actual exam 150 que
llqp practice exam 2024 newest actual exam
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LLQP PRACTICE EXAM 2024 NEWEST ACTUAL
EXAM 150 QUESTIONS AND DETAILED
CORRECT ANSWERS WITH RATIONALES
ALREADY GRADED A+.
At what point must a life insurance applicant be informed of their rights that fall under the Fair
Credit Reporting Act? - ANSWER>>Upon completion of the application
A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a - ANSWER>>risk retention group
Who elects the governing body of a mutual insurance company? - ANSWER>>Policyholders
A nonprofit incorporated society that does not have capital stock and operates for the sole
benefit of its members is known as: - ANSWER>>fraternal benefit society
What is the name of the law that requires insurers to disclose information gathering practices
and where the information was obtained - ANSWER>>Fair Credit Reporting Act
When must insurable interest exist for a life insurance contract to be valid? -
ANSWER>>Inception of the contract
Statements made on an insurance application that are believed to be true to the best of the
applicant's knowledge are called - ANSWER>>representations
Which of these arrangements allows one to bypass insurable interest laws? -
ANSWER>>Investor-Originated Life Insurance
All of the following are considered to be typical characteristics describing the nature of an
insurance contract - ANSWER>>- unilateral
-aleatory
-adhesion
A policy of adhesion can only be modified by whom? - ANSWER>>By insurance company.
If a contract of adhesion contains complicated language, to whom would the interpretation be
in favor of? - ANSWER>>insured
The part of a life insurance policy guaranteed to be true is called a(n): - ANSWER>>warranty
,What are considered to be an element of an insurance - ANSWER>>The offer
Acceptance
Consideration
What are the types of agent authority - ANSWER>>express, implied, apparent
What is the consideration given by an insurer in the consideration clause of a life policy? -
ANSWER>>Promise to pay a death benefit to a named beneficiary
Insurance contracts are known as ____ because certain future conditions or acts must occur
before any claims can be paid. - ANSWER>>conditional
A life insurance arrangement which circumvents insurance interest statutes is called: -
ANSWER>>Investor-Originated Life Insurance
A policy of adhesion can only be modified by whom? - ANSWER>>insurance company
What is a warranty? - ANSWER>>is a statement guaranteed to be true
The consideration clause of an insurance contract includes: - ANSWER>>the schedule and
amount of premium payments
Which of these require an offer, acceptance, and consideration? - ANSWER>>contract
What is considered in a statement that is assured to be true in every respect -
ANSWER>>warranty
E and F are business partners. Each takes out a $500,000 life insurance policy on the other,
naming himself as primary beneficiary. E and F eventually terminate their business, and four
months later E dies. Although E was married with three children at the time of death, the
primary beneficiary is still F. However, an insurable interest no longer exists. Where will the
proceeds from E's life insurance policy be directed to? - ANSWER>>*F
(In this situation, the proceeds from E's life insurance policy will go to F. Insurable interest only
needs to exist at the time of application.)
A life insurance policy would be considered a wagering contract WITHOUT: -
ANSWER>>insurable interest
Equity indexed life insurance - ANSWER>>Cash value has a minimum rate of accumulation
If the gain on the index goes beyond the policy's minimum rate of return, the cash value will
mirror that of the index
, Tied an equity index such as the S&P 500
K buys a policy where the premium stays fixed for the first 5 years. The premium then increases
in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind
of policy is this? - ANSWER>>Modified Whole Life
K is looking to purchase Renewable Term insurance. Which of these types of Term insurance
may be renewable? - ANSWER>>level
A feature of a group term life policy enables an individual to leave the group and continue his or
her insurance without providing evidence of insurability? - ANSWER>>Conversion privilege
T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What
kind of $10,000 policy should T purchase? - ANSWER>>Ten-Year Endowment
S is covered by a whole life policy. Which insurance product can cover his children? -
ANSWER>>Child term rider
All of these insurance products require an agent to have proper FINRA securities registration in
order to sell them EXCEPT for - ANSWER>>Modified Whole Life
A 15-year mortgage is best protected by what kind of life policy? - ANSWER>>15-year
decreasing term
P is looking to purchase a life insurance policy that will pay a stated monthly income to his
beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year
period. What type of policy should P purchase? - ANSWER>>Family Maintenance Policy
A Family Income Policy is a combination of Whole Life and - ANSWER>>Decreasing term
insurance
Which of the following statements is correct about the period in which a Term Policy can be
converted - ANSWER>>It varies according to the contracts
Credit life insurance is - ANSWER>>issued in an amount not to exceed the amount of the loan
Which statement is correct regarding the premiums payment schedule for whole life policies? -
ANSWER>>Premiums are payable throughout the insured's lifetime/ coverage lasts until death
of the insured
Which of these types of policies may NOT have the Automatic Premium Loan provision
attached to it? - ANSWER>>Decreasing term
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