TRAD True or False

If the premium has not been paid and the cash values has been exhausted, the grace period provision still applies.

• 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 good health wish to buy insurance.

• True

• False

If the policy is still in force for the full face amount and it 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.

• True

• False

In the case of misstatement of age, the amount of insurance will not be adjusted to the amount which the premium apid at the correct age would have purchased.

• False

• True

A participating endowment is a policy that provides guaranteed cash values plus extra distribution and pays the insured a specified time

• 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 60 hours) each week.

• True

• False

An endowment at age 66 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 the data which identifies the applicant.

• True

• False

A misstatement of assured's age does not make the policy a void contract.

• True

• False