Trad quizzez

Life insurance companies make use of the laws of probability in order to –

• A. Estimate future death rates among members of a given group

• B. Predict when an individual insured will die

• C. Develop statistics of past deaths among the general population

• D. Determine the experienced death rate among the insured persons

True or 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.

• A. True

• B. False

The fundamental advantage of the use of life insurance as a means of meeting economic losses is that through

life insurance these losses are

• A.. Spread over a large number of people

• B. Met as they arise through savings accumulated on an assessment basis

• C. Deferred for a specified period of time

• D. Reduced for the group as a whole through the multiplier effect

Life insurance guarantees cash benefits for all the following except

• A. Mortgage

  fund

• B. Clean-up fund

• C. Family dependency period income

• D. Educational

Life insurance contributes directly to the welfare and progress of the country by

• A. Accumulating capital for investment in commerce and industry

• B. Cash values will increase for as long as the policy is in force

• C. Encouraging provision for the future

• D. All of the above

True or False. A person’s human economic value is defined as the total value of the assets and any future

earnings derived there from.

• A.True

• B.False

True or False. A person’s human economic value is defined as the total value of the assets and any future

earnings derived there from.

• True

• False

Life insurance contributes directly to the welfare and progress of the country by

• A. Accumulating capital for investment in commerce and industry

• B. Cash values will increase for as long as the policy is in force

• C. Encouraging provision for the future

• D. All of the above

A fixed amount added to the premium of a given policy regardless of policy size is known as

• A. policy fee

• B. policy reserves

• C. policy values

• D. extra premium

Inducing an insured to lapse or forfeit his insurance

• A. is not allowed by the conditions of the contract

• B. is always to the advantage of the policyholder

• C. is an offense in the great majority of cases

• D. is a matter left entirely to the discretion of the agent