PRU TRAD MOCK EXAM (True or False) Flashcards
1
Q
- In a case where the premium has not been paid and the cash values has been exhausted, the policy can still avail of the grace period.
A
False (not exhausted)
2
Q
- According to the law of large numbers, events which happen seemingly by chance will actually be bound to follow a predictable pattern, if enough such happenings are observed.
A
T
3
Q
- Anti-selection occurs when persons in poor health wish to buy insurance.
A
T
4
Q
- A policy is still in force for the full face amount and will remain in force for a further period of four years and 118 days, without the payment of any premiums has availed of paid up insurance option.
A
F (EXTENDED TERM OPTION)
5
Q
- In the case of misstatement of age, the amount of insurance is adjusted to the amount which the premium paid at the correct age would have purchased.
A
T
6
Q
- A policy that provides guaranteed cash values plus extra annual distributions and pays the insured after a specified time is known as a participating endowment.
A
T
7
Q
- In a group insurance it is assumed that every member of the group is insurable, provided that every member of the group is working a minimum number of (usually 50 hours) each week.
A
F (No specific # of working hours req’d to avail a grp insurance plan)
8
Q
- An endowment at age 65 policy with premium payable for a limited period of 20 years pays the full amount after 20 years.
A
F (Will not pay the full amount after 20 yrs. Endowment maturity is at age 65.)
9
Q
- In most life insurance applications, the largest amount of information requested is data which identifies the applicant.
A
F (Not only identifies the applicant. Evidence of proof of insurability is composed of the complete information of applicant. Establish proof or evidence of insurability Health Age, Status, Occupation, Place of residence, Location of Work, Nature of work Lifestyle , Hobbies etc. )
10
Q
- A policy is not rendered void by reason of misstatement of the assured’s death.
A
T
