Insurance Commission Life Reviewer

A life insurance agent is permitted to

• Approve an application for insurance

• Waive any of the requirement of the company

• Guarantee dividends on participating policies

• Prepare routine proposals for life insurance coverage

Claire is considering purchasing either an endowment or term life policy. What do these policies have in common?

• Insurance protection will be limited to a specified period

• Renewal and conversion privileges are available

• No cash value is available to the policy owner during the term of the policy

• A benefit will be paid at the end of the period of coverage if the person is then alive

A client tells you that his bank wants him to use his insurance policy so that his bank loan will be paid off if he dies. Which of the following will you recommend?

• He appoints an irrevocable beneficiary

• He makes an absolute assignment

• He makes a collateral assignment

• None of the above

If premiums are being waived under a waiver of premiums benefit and the insured dies, what would the proceeds be?

• Reduced paid-up face amount

• Face amount less unpaid premiums

• Cash surrender values

• Face amount

Which of the following is a living benefit in an insurance policy?

• Guaranteed insurability benefit

• Right to change beneficiaries

• Waiver of premium for disability

• Cash surrender value

Insurable interest is necessary when a person insures another ____.

• So that the person being insured may be properly appraised

• To establish that there is a genuine risk

• Because interest on premiums must be entered

• To make sure that he will pay the premiums

Your client George wants to apply for a life insurance policy. As his advisor, you would advise him to do all of the following, EXCEPT which one?

• Furnish initial information as to insurability

• Give details pertaining to non-forfeiture options

• To convey to the company the desire of the applicant to obtain insurance

• To furnish information on which the contract of life insurance may be written

Which of the following does a limited pay life policy provides?

• Protection for the life of the policyholder with premiums payable for a limited term of years

• Low-cost protection only for a limited term of years with no savings

• The highest level of savings for the insured within a specified term of years

• Protection with premiums payable for life and a low level of savings as an alternative to continued protection in old age

When you bought an insurance policy on your wife’s life, you were 27 and she was 26, but you stated that you were 26 and she was 27. Five years later, your wife died. Which of the following will the insurer pay?

• The face amount adjusted for misstatement of age

• Slightly less than the face amount

• The sum of the premium paid

• The face amount

Group life insurance covers ____.

• Death provided it is during working hours and in the place of employment

• Death of the employee regardless of cause except suicide during the first year (sometimes two years)

• Accidental death only

• Only death by heart attack, pneumonia or cancer