ditos missing Q's

Chapter 1: Which of the following includes information regarding a person's credit, character, reputation, and habits?

• Agent's report

• MIB report

• Consumer report

• Fair Credit report

Chapter 1: Over several years, a policy-owner paid $10,000 in premiums for his insurance policy. When he suffered a loss, the insurance company paid out $50,000 in benefits. What characteristic of an insurance contract does this describe?

• Unilateral

• Adhesion

• Conditional

• Aleatory

Chapter 2: Which of the following is an example of a limited-pay life policy?

• Straight life

• Life paid-up at age 65

• Renewable term to age 70

• Endowment maturing at age 65

Chapter 2: An individual inherited a large sum of money at age 40 and wanted to use it to provide a guaranteed income after his retirement at age 60. Which of the following types of annuities would best meet this need?

• Immediate

• Flexible premium

• Deferred

• Variable

Chapter 2: With a traditional whole life policy, the death benefit...

• Remains constant over time

• Increases over time

• Decreases over time

• Becomes pure death protection after 20 years

Chapter 3: Which of the following statements is true of both the fixed-period and fixed-amount settlement options?

• Both guarantee payments for the life of the beneficiary

• Both guarantee that the principal and interest will be fully paid out

• The amount of payments is based on the recipient's life expectancy

• The size of installments decreases after a certain period of time.

Chapter 3: All of the following are nonforfeiture options in life insurance policies EXCEPT

• Automatic premium loans

• Cash surrender value

• Extended term

• Reduced paid-up insurance

Chapter 3: The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called

• Accelerated benefit

• Nonforfeiture

• Waiver of premium

• Guaranteed insurability

Chapter 4: If a policy does not pass the 7-pay test, that policy

• Must be cancelled

• Becomes a Modified Endowment Contract

• Is considered a Limited-Pay policy

• Must increase its premiums for additional 7 years

Chapter 4: Which of the following is NOT a requirement of a qualified plan?

• It must be temporary

• It must have a vesting schedule

• It cannot discriminate in favor of highly paid employees

• It must be written & communicated to all participants