Trad mock exam set 1

Question 1

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 1

a. policy fee

Question 2

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 2

d. all of the above

Question 3

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 for the mode of payment desired.

Answer 3

c. multiplied by a conversion factor for the mode of payment desired.

Question 4

The convertible feature of a term insurance policy provides that the policy may be
a. changed to a permanent insurance policy without evidence of insurability
b. changed to another life
c. cashed for a guaranteed sum
d. changed to permanent insurance with evidence of insurability

Answer 4

c. cashed for a guaranteed sum

Question 5

A man with moderate means can have maximum protection possible through
a. 20 yr. endowment
b. Limited pay life
c. Term insurance
d. Whole life insurance

Answer 5

c. Term insurance

Question 6

Mr. Juan Valdez wants a policy which will entitle him to receive dividends yearly. What will
you recommend to Mr. Valdez?
a. participating plans
b. non-participating plans
c. term insurance
d. none of the above

Answer 6

a. participating plans

Question 7

Mrs. Rose Cortez owns a policy which does not provide for the build up of cash values and
whose premiums remain level. Mrs. Cortez owns:
a. ordinary life
b. limited pay life
c. decreasing term
d. level term

Answer 7

d. level term