Which of the following statements about accelerated death benefits riders is (are) true? I. The benefit paid is usually less than the full face amount. II. Several different medical conditions may trigger the payment of benefits. A) I only B) II only C) both I and II D) neither I nor II ANSWER […]
Date: September 19th, 2020
The practice of buying the life insurance policy of a terminally ill insured at a discount is referred to as a A) collateral assignment. B) viatical settlement. C) catastrophic illness conversion. D) grace period transaction. ANSWER Answer: B
Date: September 19th, 2020
Al was named the beneficiary in his mother’s life insurance policy. His mother died during the contestable period. The insurer denied payment, citing a material misrepresentation on the application. Al believes the insurer should pay the claim because the misrepresentation occurred on the application, and the application is not part of the formal agreement between […]
Date: September 19th, 2020
Cal purchased a whole life policy 6 years ago. The policy requires annual premium payments. Cal forgot to pay the premium that was due 2 weeks ago. He wonders if his life insurance is still in force. Which life insurance policy provision is designed to keep the policy in force for a short time even […]
Date: September 19th, 2020
Bert purchased a life insurance policy 4 years ago. He inadvertently stated that he was 1 year younger than his actual age. If Bert dies today, how much will the insurance company pay? A) nothing B) less than the policy face value C) the policy face value D) more than the policy face value […]
Date: September 19th, 2020
Which of the following would be a valid reason for an insurer to contest a policy after the contestable period has ended? A) The policyholder made a material misrepresentation in the application process. B) The insurer’s loss ratio is running higher than the insurer anticipated. C) The applicant had someone else take the medical examination […]
Date: September 19th, 2020
All of the following statements about the requirements to reinstate a lapsed life insurance policy are true EXCEPT A) Evidence of insurability is required. B) The lapse must have resulted from other than the surrender of the policy for its cash value. C) All overdue premiums must be paid along with interest from the premium […]
Date: September 19th, 2020
Which of the following statements about beneficiary designations is (are) true? I. The primary beneficiary is entitled to the death proceeds of a life insurance policy only if the contingent beneficiary dies before the insured. II. If a revocable beneficiary designation is used, the insured must obtain the beneficiary’s permission of exercise most policy rights. […]
Date: September 19th, 2020
A contingent beneficiary in a life insurance policy has the right to A) receive the policy proceeds if the primary beneficiary dies before the insured. B) share the policy proceeds with the primary beneficiary. C) change the beneficiary designation under specified circumstances. D) exercise policy rights if the insured is incapacitated. ANSWER Answer: […]
Date: September 19th, 2020
Which of the following statements about the change of plan provision in a life insurance contract is (are) true? I. A change to a lower premium policy results in a refund of the difference in the cash values of the two policies. II. A change to a higher premium policy requires evidence of insurability. A) […]
Date: September 19th, 2020
