IC Reviewer- Traditional

Both endowment and term life policies provide that

• No cash value is available to the policy owner during the term of the policy
• Renewal and conversion privileges are available
• A benefit will be paid at the end of the period of coverage if the person is then alive
• Insurance protection will be limited to a specified period

Indicate which of the following is not a function of an application for life insurance policy.

• To give details pertaining to non-forfeiture options
• To furnish information on which the contract of life insurance may be written
• To furnish initial information as to insurability
• To convey to the company the desire of the applicant to obtain insurance

A father has his present life insurance payable to his estate and because he has now retired he wants to pass the policy on to his son who will assume the premium payments. Which of the following will he have to appoint his son to achieve his desire and protect the son from Estate Tax Liability?

• Irrevocable primary beneficiary
• Absolute assignee
• Irrevocable secondary beneficiary
• Revocable primary beneficiary

A policy where an irrevocable beneficiary has been designated the insured, without the beneficiary’s permission, can

• Avail of a non-forfeiture option
• Discontinue premium payments
• Borrow minimal cash loan
• Alter the dividend option now in effect

What are the basic settlement options?

• Policy loan, guaranteed insurability
• Cash surrender value, automatic premium loan
• Fixed amount, fixed period, life income, interest on deposit
• Double indemnity, total and permanent disability waiver

An insurance company generally has the right to rescind a life insurance policy if

• Company discovers at any time that the policy owner was actually a minor at the time of application
• Insured person intentionally kills himself during the suicide exclusion period specified in the policy
• Insured person is killed in military action during the contestable period of the policy
• Company discovers during the contestable period that the application contains a material statement.

Which of the following is the least important reason for requiring that insurance agents be licensed?

• To establish and maintain high professional and ethical standards
• To protect the public
• To give the government adequate control over the conduct of agents
• To provide additional income to the government through license fees

In the event that a policy owner elects the paid-up insurance option

• The premiums stop and the policy continues for the full face amount until age 65
• The insurance continues at a reduced amount and with a reduced premium
• The policy will automatically terminate
• The premiums cease and protection continues with a reduced amount of Coverage

The company will allow a policy change from a higher premium to a lower premium provided the insured

• Buys a new plan altogether
• Presents satisfactory evidence of insurability
• Momentarily assigns the policy to the company
• Obtains written consent from his or her spouse

A policy which permits the policyholder to vary the level of premiums, the sum insured and has its cash values dependent upon the investment performance and the level of premium paid is known as policy

• Participating whole life policy
• Participating endowment
• Universal life
• None of the above