Trad3_Review

Notwithstanding various possible legal impediments, if the owner of an endowment at age 65 policy tells you that the maturity of the policy he wants to provide his church with a monthly donation for as long as the church exists. Which option do you recommend?

• Periodic annuity option

• Fixed income option

• Life annuity option

• Interest option

The extent of medical evidence required is determined by

• Occupation of the applicant

• Financial condition of the applicant

• The age of the applicant and the proposed sum to be insured

• Date of the last medical examination

The conservation of a life insurance policy is dependent on all the following except

• Pressure selling

• The level of first year commission

• Agent’s service oriented attitude

• The use of effective needs selling

All of the following are sources of information to an insurance company pertaining to the insurability of an applicant except

• Medical examination report

• The applicant’s personal appearance

• Government tax records

If the applicant for life insurance fails to disclose or misrepresents material fact, the contract is

• Valid unless the insurer can prove fraud

• Voidable by the insurer if it has been in force less than 2 years

• Void from the beginning

• Valid if the insurer issues a policy which is delivered to the applicant

The settlement options provision may provide all of the following except:

• Proceeds held by the company, with interest payable to the beneficiary on request

• Payment of the proceeds over a fixed period

• Payment of the proceeds for the life of the insured

• Payments of the proceeds in fixed amounts until exhausted

Non-forfeiture provisions are included in whole life and endowment policies to assure the policyowner that certain minimum policy benefits shall remain with him even under certain changed conditions. Non-forfeiture values guarantee to the policyowner that

• No death claim will be denied for any misstatement on the application

• The premium on the policy will remain the same even when another beneficiary is added to the policy

• Any guaranteed policy values will belong to the policy owner even if premium payments are discounted

• The face amount of the policy will remain the same even if the insured’s health becomes impaired

Purchasing a continuous-premium, whole life policy rather than a limited payment, whole life policy gives the policyowner the advantage of

• More rapid accumulation of cash values

• More insurance protection for the same annual premiums outlay

• Liberal risk selection procedures

• Concentration of premium payments during the period of highest earnings

In certain situations a company may file interpleader actions with a Court of Law. This remedy is used to

• Decide conflicting claims on the same insurance proceeds

• Resolve the question of insurable interest

• Determine if the cause of the insured’s death was an excluded risk

• Recommend the best settlement options for the beneficiary If the interest on a policy loan is not paid at the policy anniversary the insurance

Which of the following statement is false?

• Because of its very short duration the cash value of a yearly renewable term policy grows very fast

• The cash value of a whole life policy builds up at a slower rate than for a 20 year endowment

• The cash value of an endowment builds up faster than that for a limited pay life policy of the same duration

• The cash value in a permanent policy is guaranteed by the company