TRAD REVIEWER (TRUE OR FALSE)

Question 1

Direction: Write T if the statement is TRUE and F is the statement is FALSE.

1. 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.

Answer 1

FALSE

Question 2

2. 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.

Answer 2

TRUE

Question 3

3. Anti-selection occurs when persons in poor health wish to buy insurance.

Answer 3

TRUE

Question 4

4. 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.

Answer 4

FALSE

Question 5

5. 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.

Answer 5

TRUE

Question 6

6. 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.

Answer 6

TRUE

Question 7

7. 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.

Answer 7

FALSE

Question 8

8. An endowment at age 65 policy with premium payable for a limited period of 20 years pays the full amount after 20 years.

Answer 8

FALSE

Question 9

9. In most life insurance applications, the largest amount of information requested is data which identifies the applicant.

Answer 9

FALSE

Question 10

10. A policy is not rendered void by reason of misstatement of the assured’s death.

Answer 10

TRUE

Question 11

11. The policy can still avail of the grace period even if the premium has not been paid and the cash values have been exhausted.

Answer 11

FALSE

Question 12

12. The law of large numbers is about the events occurring by chance will actually follow a predictable pattern, if enough such happening is observed.

Answer 12

TRUE

Question 13

13. Anti-selection occurs when persons in good health wish to buy insurance.

Answer 13

FALSE

Question 14

14. A policy is still in force for the full face amount and will remain in force for a further period of four years and 117 days, without the payment of any premiums has availed of paid-up insurance option.

Answer 14

FALSE

Question 15

15. In the case of misstatement of age, the amount of insurance will not be adjusted to the amount which the premium paid at the correct age would have purchased.

Answer 15

FALSE

Question 16

16. A participating endowment is a policy that provides guaranteed cash values plus extra annual distributions and pays the insured after a specified time.

Answer 16

TRUE

Question 17

17. 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 60 hours) each week.

Answer 17

FALSE

Question 18

18. An endowment at age 66 policy with premium payable for a limited period of 20 years pays the full amount after 20 years.

Answer 18

FALSE

Question 19

19. In most life insurance applications, the largest amount of information requested is data which identifies the applicant’s interest in purchasing a policy.

Answer 19

FALSE

Question 20

20. A misstatement of the assured’s death does not make the policy a void contract.

Answer 20

TRUE