TRAD True or False

Question 1

If the premium has not been paid and the cash values have been exhausted, the grace period provision still applies.

Answer 1

False

Question 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

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

Answer 3

False

Question 4

If 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, this implies that the owner has availed of the paid-up insurance option.

Answer 4

False

Question 5

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 5

False

Question 6

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

Answer 6

True

Question 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 60 hours) each week.

Answer 7

False

Question 8

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

Answer 8

False

Question 9

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

Answer 9

False

Question 10

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

Answer 10

True