Questions about Insurance

Which statement about a whole life policy is true

• Cash value may be borrowed against

• Death benefit can usually be adjusted

• Beneficiary may be changed only with the consent of the premium payor

• Premiums are flexible

Who owns a stock insurance company?

• Stockholders

• Stakeholders

A foreign insurance company conducting insurance business in Texas

• is not subject to Texas insurance laws

• was formed under the laws of another state

•  was formed under the laws of another country

•  is only authorized to write business outside the United States

All of these are considered sources of underwriting information about an applicant EXCEPT

• Inspection Report

•  Credit Report

• Rating Services

• Medical Information Bureau

 Which of these requires an offer, acceptance, and consideration?

• Warranty

• Contract

• Representation

Which of the following types of policies pays a benefit if the insured goes blind?

• Universal life

• Endowment

• Adjustable life

• AD&D

An individual who purchases a Life annuity is given protection against

• the risk of living longer than expected

• the risk of dying prematurely

• the risk of not having enough retirement income

K age 45, and his wife, age 43, have three children. They purchase a Family Policy that covers K's wife to age 65. All of these situations will pay a death benefit EXCEPT

• K's wife dies at age 64

• K's wife dies at age 66

• K's wife dies at age 61

• K's wife dies at age 45

Which of the following groups may NOT be insured by a group life insurance policy?

• employees

• supervisors

• administrators

• individuals who are related by blood

When is the face amount paid under a Joint Life and Survivor policy?

• when policy reaches maturation

• upon death of the first insured

•  upon death of the last insured 

• when one of the insureds becomes disabled and no longer able to make premium payments