Traditional Flashcards
A life insurance agent is permitted to
Prepare routine proposals for life insurance coverage
What does endowment and term life policy have in common
Insurance protection will be limited to a specified period
A client tells you that his bank wants him to use his insurance policy so that his bank loan will be paid off if he dies. What will you recommend?
He makes a collateral assignment
If premiums are being waived under a waiver of premiums benefit and the insured dies, which of the following with the proceeds be?
Face amount
What is a living benefit in an insurance policy?
Cash surrender value
Insurable interest is necessary when a person insures another…
To establish that there is a genuine risk
Your client george wants to apply for a life insurance policy. As his advisor, you would advice him to do what?
A. Furnish initial info as to insurability
B. Give details pertaining to non-forfeiture options
C. To furnish information on which the contract of life insurance may be written
What does a limited pay life policy provides?
Protection for the life of the policyholder with premiums payable for a limited term of years.
When you bought an insurance policy on your wife’s life, you were 27 and she was 26, but you stated that you were 26 and she was 2. Five years later, your wide died. What will the insurer pay?
Slightly less than the face amount
Group life insurance covers
Death of the employee regardless of the cause except suicide during the first year (sometimes 2 years)
Your client tells you that when his father died, he received P500, 000 free of Estate tax, and that he had not even known that his policy existed. Which classification did your client fall under?
Irrevocable primary benefeciary
Mr. Sy walked out of his house one night, and was never heard from since. His wife wanted to make claim on his insurance policy, as she believes that he is dead. In this case, what statement would be correct?
It would take 7 years before the court could declare him legally dead.
In life insurance, which of the following does the term substandard rates generally refer to?
Premiums charged to persons who are considered to be higher than average risk categories
Life insurance policy loans are limited to an amount which with interest will not exceed the…
Cash value of the policy
What happens to a policy when an irrevocable beneficiary has been designated and the policy owner needs to loan against his policy for a specific reason?
Avail of non-forfeiture option
The fundamental advantage of the use of life insurance means of meeting economic losses is that through life insurance, these losses are…
Spread over a large number of people
A job agent…
A. Makes a sales presentation, he has to sell confidence in the product.
B. Meets a new prospect for the first time, he has to sell confidence to himself
C. His primary job is to get people happily involved with the ownership of his policy.
What will happen if the insured fails to pay the interest on a policy loan during its policy anniversary?
Increase the present loan by the interest
If the policyholder changes his occupation without notifying the company, would it affect the benefits under his policy?
No, benefits agreed upon the inception of the policy may not be charged
If a policy owner avails, of a claim, what are his basic settlement options?
A. Fixed amount.
B. Fixed period
C. Life income
D. Interest on deposit
A businessman has arranged for a development loan that will available 1 year from now. Because he is unable to wait until he has arranged an interim loan with his bank. The only problem is that the bank wants to loan secured against the risk of his death. What is the best economic arrangement that could be recommended?
Yearly renewable term
What circumstance does an insurance company have the right to rescind a policy?
Company discovers that any time that the policy owner was actually a minor at the time of application.
A prospect tells you that he wants to be insured at aged 65, but he does not want to pay more than the minimum possible level of premiums. What could you offer him?
Term policy
An applicant want to get a participating policy that will have the maximum cash available for emergencies
Accumulated dividends