Mr. Kho’s participating whole life insurance policy includes a waiver of premium for disability benefit. During the period when premium payments are being waived under this provision, the cash value of this policy will

An applicant wants to get a participating policy which will have the maximum cash available for emergencies. Which of the following should he select?

A whole life policy provides

A prospect tells you that he wants the highest coverage possible for the least annual cash outlay. Would you offer him

A company can restrict its liability if death occurs as a result of an aviation accident. The aviation exclusion clause usually applies to which of the following?

A Family Income Rider is specifically designed to

A prospect tells you that he wants to be insured for life but he does not want to pay premiums after he retires at age 65. Would you offer him

A prospect tells you that he wants to be insured at age 65 but he does not want to pay more than the minimum possible level of premiums. Would you offer him

A prospect tells you that he wants to be insured for life at the least annual cost until he dies. What would you offer him?

Limited payment life policies are called such because these policies

All of the following are correct statements except:

At the end of 25 years, which statement is true for a 25-Pay Life and is not true for a 25-Year endowment?

All of the following policies can be used to afford retirement income except:

A term policy provides

Applicants for life insurance with moderate physical impairments are called sub-standard risks and

A policy requiring the payment of premiums through life, or until the cash value equals its face value at age 100 is called

A prospect tells you that he has a loan with a financial institution and he would like an insurance company to pay it off if he dies, but, he is hard-up and he wants this coverage at the lowest possible cost. Would you offer him

Which of the following statements is incorrect?

In a child insurance policy, the Parent Waiver Clause is?

A person’s human economic value is defined as the

In order for life insurance premiums to be waived under a typical waiver of premium for disability clause, the disability of the insured person must be total and the disability must

Insurance provides protection against economic loss by enabling the policyowner to

Life insurance guarantees cash benefits for all of the following except

Participating life insurance policies are policies which

Non-productive agents in a company affect

All of the following are sources of underwriting information except:

Under an endowment policy, if the person whose life is insured survives to the end of the period stated in the policy, the

When the death benefit of a policy is restricted in amount during the early years of the policy, this restriction is known as

In theory, endowment insurance is a combination of

Some insurance companies charge females a lower premium rate than males. Which of the following reasons justifies that practice?

The premium for a participating life insurance policy is

The information on a life insurance application relating to an applicant’s birthday, occupation, and avocation is used by the company primarily for the purpose of:

Which of the following statements is NOT correct?

The level premium system means the

All of the following term policies can be sold as a basic policy contract except

A life insurance agent is permitted to

Life insurance companies practice risk selection primarily to

An Individual, at age 35, purchases a policy under which he will in 20 years receive the face amount of the policy himself if he is still alive at that date. This policy is obviously a

In determining the number of people dying or living at a particular age within a given period, we use the principle of:

Which of the following statements about Disability Waiver of Premium Rider is incorrect?

A housewife without gainful employment applies for a P 500,000 life coverage. Which of the following should the agent do?

The total life coverage of a permanent basic policy can be greatly increased through the use of

If premiums are being waived under a waiver of premium benefit and the insured dies, the proceeds will be

The full face amount is received by the insured himself

A parent taking a life insurance policy on his minor child wishing to provide that the policy will continue in force in the event of his own death, would apply for

If a policyholder changes his occupation without notifying the company, might it affect the benefits under his policy?

The fundamental advantage of the use of insurance as a means of meeting economic losses is that through insurance these losses are

For the waiver of premium to be effective

Because the renewal of a term life insurance policy presents an increased possibility of anti-selection, it is customary for the insurance company to

A businessman has arranged for a development loan which will be available one year from now. Because he is unable to wait until then he has arranged an interim loan with his bank. The only problem is that the bank wants the loan secured against the risk of his death. What is the most economic arrangement that you can recommend?

A Pure Endowment policy

Substandard premium rates are charged for

An insurance company which is owned and controlled by the policyowners who also share in the earnings of the insurance company in the form of dividends is known as

“Critical years” in the programming of life insurance means:

The consideration required by the life insurance company to make the insurance coverage effective is the

In most life insurance applications the largest amount of information requested is data which

In a Life Insurance Company, risk appraisal is necessary to

A limited pay life policy provides

In life insurance, the term “sub-standard rates” is generally used to refer to

Life insurance companies make use of the laws of probability in order to