Amy purchased a life insurance policy with the intent of committing suicide to pay all the debts that were burdening her family If she commits suicide 9 months after the policy is purchased, and the insurer is able to prove that her death was a suicide, how much will be paid by the insurance company? […]
Date: September 19th, 2020
What major feature distinguishes a participating policy from a nonparticipating policy? A) the availability of a waiver-of-premium provision B) the existence of settlement options C) the payment of dividends D) the method by which beneficiaries can be named ANSWER Answer: C
Date: September 19th, 2020
Which of the following statements about the grace period in a whole life insurance contract is (are) true? I. The purpose of the grace period is to prevent the policy from lapsing by giving the policyowner additional time to pay an overdue premium. II. If the insured dies during the grace period, the death benefit […]
Date: September 19th, 2020
Sources of life insurance dividends include which of the following? I. Excess interest earned on the assets necessary to maintain legal reserves II. Favorable mortality experience A) I only B) II only C) both I and II D) neither I nor II ANSWER Answer: C
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
