Test questions

Question 1

Which of these is a method of determining the level of funds required for ongoing support in the event of the breadwinner’s death?

Answer 1

Human Life Value - used to determine level of funds needed of spouse if breadwinner passes

Question 2

Which of the following factors affect the monthly disability benefits payable under Social Security?

Answer 2

The amount of benefits available from other sources - Social Security is Federal (and money made in past)

Question 3

Pat owns a 20 pay life policy with a paid up dividend option, which statement is true?

Answer 3

The policy may be paid up early by using accumulated cash values

Question 4

How many months can a life insurance policy normally be backdated?

Answer 4

6 months

Question 5

Which of the following can an adent provide to help a prospective client purchase the most appropriate product?

Answer 5

Buyers guide

Question 6

Which of the following areas of state regulations is not protected by the savings clause in ERISA?

Answer 6

Commerce

Question 7

If a client pays, they need what type of receipt?

Answer 7

Conditional receipt

Question 8

Jack got a flexible premium adjustable life policy and it has a death benefit that is level, what type of policy does he have?

Answer 8

Universal Life Death Benefit A. - “Flexible premium adjustable Life” = Universal Life / Death benefit A is level face amount only

Question 9

Jack got a flexible premium adjustable life policy and it has a death benefit that increases, “cash value increases,” What type of policy is it?

Answer 9

Universal Life - Death benefit B. - “Flexible premium adjustable life” = Universal Life / Death benefit B = face amount +cash value

Question 10

Jack and Jill got a Joint Life policy. Jack dies, what happens?

Answer 10

Jill gets check

Question 11

Jack and Jill got a Survivorship Life Policy. Jack dies, what happens?

Answer 11

Nothing yet, nobody gets paid until all insureds die. Check goes to kids/beneficiary after Jill dies

Question 12

Bob and Mike are business partners and they BOTH want a policy to cover debts in case of partner death, what policy should they get?

Answer 12

Joint Life

Question 13

Cash value varies based on companies performance

Answer 13

Interest sensitive policy

Question 14

What can you change in an Adjustable life policy?

Answer 14

P - plan
C - coverage period
P - premium period

Question 15

What is a payor benefit?

Answer 15

If payer dies, premiums are waived until child is an adult

Question 16

Which joint policy pays at the death of last person insured?

Answer 16

Survivorship Life

Question 17

What indicates the number of individuals within a specific group, including m/fem, smokers, nonsmokers, starting at certain age, who expect to be alive at a certain age?

Answer 17

Mortality tables