TRAD 61-70

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TRAD 61-70

61. Which of the following statement is correct? *

1 point

a. Orphan policy owners hardly need an agent’s services

b. Orphan policy owners will only deal with their original agents

c. New agents should stay away from orphan policy owners

d. Orphan policy owners are good sources of prospect and new sales

62. The widow of your policyholder tells that she does not want a lump sum payment, but she prefers to receive monthly allowance for the rest of her natural life. Which option do you recommend? *

1 point

a. Fixed income option

b. Fixed period option

c. Life annuity option

d. Periodic annuity option

63. A risk is considered substandard based on any or all of the following criteria *

1 point

a. Occupation, moral character and family heath history

b. Income, educational attainment and occupation

c. Death income and educational background

d. Death, occupation and moral characte

64. How are endowment life insurance and term life insurance the same? *

1 point

a. Contain provisions for automatic continuation of the insurance protection at the end of a specified period

b. Provide life insurance protection for only a period of time specified in the policy contract

c. Provide for payment of the face amount if the insured is alive at the end of specified period

d. Build up cash value rapidly in the early policy years

65. A prospect tells you that he wants the maximum possible provision for his retirement with no life coverage. Which of the following would you offer him? *

1 point

a. Whole life policy

b. A life paid-up at age 65 policy

c. A 20-pay life policy

d. None of the above

66. Some insurance companies charge females a lower premium rate than males. Which of the following justifies the practice? *

1 point

a. Women have a longer life expectancy (after age 54) than men

b. Women are less likely to lapse the policies

c. Generally, women buy the higher premium rate policies, such as an endowment policy or retirement income policy

d. Generally, women have less hazardous jobs

67. At the end of 25 years, which statement is true for a 25-year Life policy and is not for a 25-year endowment? *

1 point

a. The sum insured is paid

b. No further premiums are paid

c. The insurance remains in-force

d. The contract is terminated

68. Which of the following sales practices determines a prospect’s complete financial requirement before offering a policy? *

1 point

a. Multiple products selling

b. Counselor selling

c. Planned selling

d. Total needs selling

69. Insurance provides protection against economic loss by enabling the policy owner to ____. *

1 point

a. Share the loss with others exposed to similar risk

b. Transfer responsibility for the loss to others

c. Reduce the possibility of the occurrence of the event causing the loss

d. Take speculative risk to compensate for the loss

70. When is the only instance a life insurance contract is treated primarily as an indemnity agreement? *

1 point

a. Person insures the life of his or her spouse to protect against the loss of income earned by the spouse

b. A person insures the life of a friend

c. Person in a partnership insures the life of his partner to protect the firm against loss due to the death of that partner

d. Creditor insures the life of his debtor to protect himself

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