Module 1: Foundations Of Life Insurance

Question 1

1. A single premium policy means a policy

A. requiring only a single premium each year
B. under which only one premium payment is required
C. only available to single individuals
D. on which no more than one premium can be paid in advance

Answer 1

B

Question 2

2. A fixed amount added to the premium of a premium given
   policy regardless of policy size is known as

A. policy fee
B. policy reserve
C. policy values
D. extra premium

Answer 2

A

Question 3

3. To be able to calculate the required premiums for a given
   policy, the agent must know the applicant’s

A. age
B. choice of plan
C. face amount desired
D. all of the above

Answer 3

D

Question 4

4. To calculate premiums for the other modes of premium
   payment, the annual premium is

A. divided by the desired number of premium payments
B. divided by a conversion factor for the mode of payment desired
C. multiplied by a conversion factor for the mode of payment desired
D. multiplied by a constant conversion factor

Answer 4

C

Question 5

5. A father enters into a life insurance contract on behalf of his
   child. In this case, the father is the

A. insured
B. beneficiary
C. insurer
D. applicant-owner

Answer 5

D