TRAD 41-50

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TRAD 41-50

41. In a life insurance company, risk appraisal is necessary to: *

1 point

a. Prevent anti-selection

b. Project dividend rates for participating policies

c. Collate mortality statistics

d. Calculate the mortality rate for a given policy

42. Limited payment life policies are called as such because those policies _____. *

1 point

a. Shorten the period when the benefits may be paid

b. Limit the period during which the premiums are payable

c. Limit the conditions under which the policies are payable

d. Limit the number of beneficiaries, thereby, minimizing the problems of paying too many people

43. Which of the following is a settlement option? *

1 point

a. Cash surrender value

b. Extended term insurance option

c. Policy loan

d. Interest on insurance proceeds

44. The following statements about “Disability Waiver of Premium Rider” are true, except: *

1 point

a. There is a waiting period

b. Disability must occur before a stated date

c. The insured has to die while disabled

d. It has to be attached to a life insurance policy

45. Which of the following statements is false? *

1 point

a. Agents with persistent business seldom stay long with one company.

b. When a policy lapses, the agent loses a valuable source of prospect

c. Too many lapsed policies can cause an agent’s agreement to be cancelled.

d. When a policy lapses, the agent loses all future commissions on renewal premiums.

46. Under an endowment policy, if the person whose life is insured survives to the end of the period stated in the policy, the ___. *

1 point

a. Policy will terminate without value

b. Face amount of the policy be paid

c. Policy will automatically be converted to paid-up whole policy

d. The extended term insurance will be brought into effect

47. “Critical years” in the programming of life insurance means: *

1 point

a. Retirement years

b. Years between the time the youngest child is 15 years old and the mother is 62 years old

c. Years immediately following the insured’s death

d. Period during which the children are small, and cannot provide for themselves

48. Jared wants to update his yearly renewable term life insurance policy. Which of the following applies to a yearly renewable term life insurance? *

1 point

a. Premiums shall increase every time the policy is renewed.

b. Cash values will increase for as long as the policy is in force.

c. Evidence of insurability shall be required every renewal.

d. The policy owner may renew the policy only once.

49. The Insurance Commissioner has the power to revoke or refuse an agent’s license in all of the following instances, except: *

1 point

a. When the applicant for license has intentionally withheld information concerning his conviction of a crime involving moral turpitude

b. When the agent has diverted any premium collection for his personal use

c. When an agent influences the applicant’s choice of plan to be purchased

d. None of the above

50. In an application, the information that must be disclosed include *

1 point

a. Only his date and place of birth

b. Only his family history

c. Every fact in his knowledge that is material to the insurance

d. Only the information he wants the agent to know

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