Credit Insurance Quiz

Question 1

The credit insurance license is a:

A) multiple lines B) Life and Health License C) Property and Casualty license D) limited lines

Answer 1

D) Limited Lines

Question 2

_____ is the lender of money or vendor or lessor of goods, services, property, rights or privileges for which payment is arranged through a credit transaction or any successor to the right, title or interest of any such lender, vendor, or lessor

Answer 2

Creditor

Question 3

_____ is a borrower of money or a purchaser or lessee of goods, services, property, rights or privileges for which payment is arranged through a credit transaction

Answer 3

Debtor

Question 4

Which of the following is not considered a credit transaction? A) mortgage loan B) Kohl’s credit card purchase C) cash purchase of an ipod D) car loan

Answer 4

C) cash purchase of an ipod

Question 5

Credit Life insurance generally uses which type of term insurance? A) increasing term B) level term C) whole life D) decreasing term

Answer 5

D) decreasing term

Question 6

In accordance with the Credit insurance act, an auto dealership which leases vehicles to customers is a(an)_____

Answer 6

Creditor

Question 7

All of the following are true regarding credit insurance except: A) credit life is designed to payoff a debt upon the death of the debtor B) credit insurance may be issued as an individual or group policy C) the amount of credit life insurance must equal the indebtedness D) a certificate of group credit insurance must be delivered within 60 days of incurring the debt

Answer 7

D) – **because the certificate of group credit insurance must be delivered within 30 days

Question 8

Which of the following is not required to be included on a Certificate of Insurance? A) name & address of the insurance producer B) amount of coverage C) premiums to be paid D) any policy limitations

Answer 8

A) name and address of the insurance producer