Both endowment and term life policies provide that

Indicate which of the following is not a function of an application for life insurance policy

A father has his present life insurance payable to his estate and because he has now retired he wants to pass the policy on to his son who will assume the premium payments. Which of the following will he have to appoint his son to achieve his desire and protect the son from Estate Tax Liability?

A policy where an irrevocable beneficiary has been designated, the insured, without the beneficiary’s permission, can

What are the basic settlement options?

An insurance company generally has the right to rescind a life insurance policy if

Which of the following is the least important reason for requiring that insurance agents be licensed?

In the event that a policy owner elects the paid-up insurance option

The company will allow a policy change from a lower premium to a higher premium provided the insured

A policy which permits the policyholder to vary the level of premiums, the sum insured and has its cash values dependent upon the investment performance and the level of premium paid is known as ___________ policy

Which of the following statements about “Waiver of Premium due to Disability” is false?

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

Paid-up additions

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

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

In the case of renewable term insurance, the policy owner may

A man applied for a Ps. 20,000 whole life policy and paid the full initial premium to the soliciting agent. The agent issued a binding receipt. Under such a receipt, the insurance company

Endowment life insurance and term life insurance are similar in that both plans

An agent who determines a prospect’s complete financial requirements preparatory to offering him a policy using the correct selling approach knows as

Name the provision in a permanent life insurance policy under which premiums are discontinued, full insurance will be maintained for a specified period:

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?

The extent of medical evidence required is determined by

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

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

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

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

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

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

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

Which of the following statement is false?

Which of the following does not have a legitimate insurable interest?

The basic coverage provided by the life insurance policies may be supplemented by a separate provision that provides coverage for accidental amounts or of a different nature. Collectively these provisions are known as

Which of the following statements regarding insurance premiums is false?

A non-forfeiture option would ordinarily be selected at the time a policyowner

If the interest on a policy loan is not paid at the policy anniversary the insurance company may

The incontestability clause

The insured named a primary and secondary revocable beneficiary for Ps. 20,000 policy. Which of the following is correct?

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. The insurer will pay

If the interest on a policy loan is not paid at the policy anniversary the insurance company may

A yearly renewable term life insurance policy generally specifies that

In a case where the premium has not been paid and the cash values has been exhausted, the policy can still avail of the non-forfeiture options

According to the law of large numbers, events which happen seemingly by chance will actually be bound to follow a predictable pattern, if enough such happenings are observed.

Anti-selection occurs when persons in poor health wish to buy insurance.

A policy is still in force for the full face amount and will remain in force for a further period of four years and 118 days, without the payment of any premiums has availed of paid up insurance option.

In the case of misstatement of age, the amount of insurance is adjusted to the amount which the premium paid at the correct age would have purchased.

A policy that provides guaranteed cash values plus extra annual distributions and pays the insured after a specified time is known as a participating endowment.

In a group insurance it is assumed that every member of the group is insurable, provided that every member of the group is working a minimum number of (usually 50 hours) each week.

An endowment at age 65 policy with premium payable for a limited period of 20 years pays the full amount after 20 years.

In most life insurance applications, the largest amount of information requested is data which identifies the applicant.

A policy is not rendered void by reason of misstatement of the insured’s age.