Trad Exam Review - True or False

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.

• True

• 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.

• True

• False

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

• True

• False

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.

• True

• False

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.

• True

• False

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.

• True

• False

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.

• True

• False

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

• True

• False

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

• True

• False

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

• True

• False