TRAD EXAM SET B PART 3

ACCORDING TO INSURANCE LAW, A COMMON-LAW SPOUSE CANNOT BE DESIGNATED A BENEFICIARY

• since there is no benefit of marriage in the relationship

• if his/her legal partner is still living and the previous marriage has not been legally dissolved

• since the common-law relationship is an immoral relationship

• all of the above

POLICY RESERVES ARE FUTURE OBLIGATIONS ON THE PART OF

• the Insurance Commission

• the Insurance Company

• the beneficiary

• the policyowner

WHICH ONE OF THE FOLLOWING PROVISION IN A PERMANENT LIFE INSURANCE POLICY MAY LAPSE FOR NON-PAYMENT OF PREMIUM

• Guaranteed Insurability

• Automatic Premium Loan

• Settlement Options

• Reinstatement Provision

A POLICYHOLDER MAY OBTAIN MONEY FROM THE INSURANCE COMPANY AND STILL REMAIN INSURED BY

• surrendering the policy for its cash value

• discontinuing payment of premium for some period

• taking a policy loan

• taking the extended insurance option

WHEN YOU BOUGHT AN INSURANCE POLICY ON YOUR WIFE'S LIFE YOU WERE 25 AND SHE WAS 26, BUT YOU STATED THAT YOU WERE 26 AND SHE WAS 27. FIVE YEARS LATER YOUR WIFE DIED. THE INSURANCE COMPANY WILL PAY

• the face amount

• the face amount adjusted for misstatement of age

• the sum of the premium paid

• slightly less than the face amount

IF THE POLICY DID NOT CONTAIN THE NAME OF A BENEFICIARY, THE BENEFICIARY WILL BE

• the wife

• the children

• the insured's brothers and sisters

• the insured's estate

IF A POLICYOWNER WHOSE WIFE IS THE IRREVOCABLE BENEFICIARY WISHES TO CASH IN HIS POLICY, HE MUST

• tell his wife what he is going to do

• first take a loan on the policy

• have the check issued in the name of his wife

• have the wife's consent

IF A POLICY WITH THE ACCIDENTAL DEATH RIDER BECOMES PAID UP

• the accidental death rider ceases

• the face amount of the policy is reduced

• premiums on the basic policy stop but the rider premium continues

• none of the above

AN ANNUITY PLAN

• offers life insurance protection

• offers the waiver of premium benefit

• is the same as an endowment plan

• is a purchase of income

THE PERSON WHO PURCHASES THE ANNUITY PLAN IS CALLED THE

• assignor

• owner

• insured

• annuitant