Question 1

What kind of life insurance beneficiary requires his/her consent when a change of beneficiary is made?

Accepted Answer

Irrevocable beneficiary

Question 2

When can a policyowner change a revocable beneficiary?

Accepted Answer

Anytime

Question 3

How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy?

Accepted Answer

If the primary beneficiary dies before the insured

Question 4

A level premium indicates

Accepted Answer

the premium is fixed for the entire duration of the contract

Question 5

If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act?

Accepted Answer

Insured's contingent beneficiary

Question 6

Which premium schedule results in the lowest cost to the policyowner? Semi-annual Monthly Quarterly Annual

Accepted Answer

Annual

Question 7

An underwriter determines that an applicant's risk should be recategorized due to a health issue. This life insurance policy may be issued with a(n)

Accepted Answer

extra premium

Question 8

When does a life insurance contract become effective if the initial premium is not collected during the application process?

Accepted Answer

When producer delivers policy and collects initial premium

Question 9

M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT policy is delivered free-look period has expired insurance company issues policy initial premium is collected

Accepted Answer

Free-Look period has expired

Question 10

What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?

Accepted Answer

Conversion

Question 11

N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase?

Accepted Answer

Fixed Deferred

Question 12

T has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving payments for 20 years, the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this?

Accepted Answer

Life Annuity with Period Certain

Question 13

What determines the full amount of Social Security retirement benefits a qualified individual is entitled to receive?

Accepted Answer

Primary Insurance Amount (PIA)

Question 14

Which of these provisions require proof of insurability after a policy has lapsed? Insuring Conversion Reinstatement Consideration

Accepted Answer

Reinstatement

Question 15

What is the Suicide provision designed to do?

Accepted Answer

safeguard the insurer from an applicant who is contemplating suicide

Question 16

M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take?

Accepted Answer

Pay face amount minus the past due premium

Question 17

What benefit does the Payor clause on a Juvenile Life policy provide?

Accepted Answer

Premiums are waived if payor becomes disabled

Question 18

How are policyowner dividends treated in regards to income tax?

Accepted Answer

Interest on accumulations is taxed

Question 19

B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of

Accepted Answer

additional Whole Life coverage at specified times

Question 20

L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the Misstatement of Age provision, the insurer will

Accepted Answer

adjust the death benefit to a reduced amount

Question 21

S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy?

Accepted Answer

Return of premium rider

Question 22

What does the ownership clause in a life insurance policy state?

Accepted Answer

Who the policyowner is and what rights the policyowner is entitled to

Question 23

The automatic premium loan provision is designed to

Accepted Answer

avoid a policy lapse

Question 24

Q is hospitalized for 3 days and receives a bill for $10,100. Q has a Major Medical policy with a $100 deductible and 80/20 coinsurance. How much will Q be responsible for paying on this claim?

Accepted Answer

$2,100

Question 25

Which of these are NOT an example of a Nonforfeiture option? Extended Term Reduced Paid-up Cash Surrender Life Income

Accepted Answer

Life Income

Question 26

P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability? P cannot borrow against the policy's cash value while disabled P will have to pay income taxes on the amount of premiums waived P will still receive declared dividends P cannot assign ownership of the policy while premiums are being waived

Accepted Answer

P will still receive declared dividends

Question 27

Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling?

Accepted Answer

Variable Life

Question 28

What kind of special need would a policyowner require with an Adjustable Life insurance policy?

Accepted Answer

Flexible premiums

Question 29

Which of the following actions require a policyowner to provide proof of insurability in an Adjustable Life policy? increase face amount decrease face amount increase premium-paying period decrease premium payment

Accepted Answer

Increase face amounts

Question 30

When a policyowner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply?

Accepted Answer

Conversion provision

Question 31

How long does the coverage normally remain on a limited-pay life policy?

Accepted Answer

age 100

Question 32

Which of the following features of a group Term Life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability? Owner's Rights clause Incontestable Period Insuring Agreement Conversion privilege

Accepted Answer

Conversion Privilege

Question 33

What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability?

Accepted Answer

Convertible Term

Question 34

T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase?

Accepted Answer

Ten-Year Endowment

Question 35

A life policy with a death benefit that can fluctuate according to the performance of its underlying investment portfolio is referred to as

Accepted Answer

Variable Life

Question 36

All of these insurance products require an agent to have proper FINRA securities registration in order to sell them EXCEPT for Variable Life Modified Whole Life Universal Variable life Variable Annuity

Accepted Answer

Modified Whole Life

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