(True/False) TRAD-Mock Exam Flashcards
If the premium has not been paid and the cash values have been exhausted, the grace period
provision still applies.
“Policy Provisions”
FALSE
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.
“IC Guidelines”
TRUE
Anti-selection occurs when persons in good health wish to buy insurance.
“Underwriting”
FALSE
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.
“Products & Riders/ Policy Provisions”
FALSE
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.
“Policy Provisions”
FALSE
A participating endowment is a policy that provides guaranteed cash values plus extra annual
distributions and pays the insured after a specified time.
“Products & Riders”
TRUE
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.
“Products & Riders”
FALSE
An endowment at age 66 policy with premium payable for a limited period of 20 years pays the
full amount after 20 years.
“Products & Riders”
FALSE
In most life insurance applications, the largest amount of information requested is the data
which identifies the applicant.
“Underwriting”
FALSE
A misstatement of the assured’s age does not make the policy a void contract.
“Policy Provisions”
TRUE
