A life insurance agent is permitted to

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

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?

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

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

Insurable interest is necessary when a person insures another ____.

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?

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

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?

Group life insurance covers ____.

Your client tells you that when his father died, he received P500,000 free of Estate Tax, and that he had not even known that his policy existed. Which of the following classifications did your client fall under?

Mr. Sy walked out of his house one night, and was never heard from since . His wife wanted to make a claim on his insurance policy, as she believes that he is dead. In this case, which of the following statements is correct?

In life insurance, which of the following does the term “substandard rates” generally refer to?

Life insurance policy loans are limited to an amount which with interest will not exceed the ___.

What happens to a policy when an irrevocable beneficiary has been designated and the policy owner needs to loan against his policy for a specific reason?

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

Which of the following statements is FALSE?

What will happen if the insured fails to pay the interest on a policy loan during its policy anniversary?

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

What are the basic settlement options? a. b. c. d.

A businessman has arranged for a development loan that will available 1 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 loan secured against the risk of his death. What is the best economic arrangement that you recommend?

In which circumstance does an insurance company have the right to rescind a policy?

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. b. c.

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

The following statements are true with respect to reinstatement process EXCEPT ____.

If the insured dies during the grace period of an unpaid life insurance policy, the amount payable to the beneficiary is usually the

Which of the following best describes a person’s human economic value?

The basic purposes of a conditional premium receipt are to acknowledge payment of initial premium for life insurance and to ____.

Which of the following statements best describes a Pure Endowment policy?

Which of the following considerations is required by the life insurance company to make the insurance coverage effective?

Gwen is thinking of electing the paid-up insurance option, what will happen to her policy if she does?

The company usually allows a policy change from a higher premium to a lower premium if the insured ____.

. An applicant wants a participating policy where the death benefit will be maximized. Which of the following should he choose?

Which statement is false when the new owner borrows on a policy?

Which of the following does a whole life provide?

In practice, most claims for the death benefits of life insurance policies are ____.

The following statements concerning insurable interest are correct, except:

Which policy permits the policyholder to vary the level of premiums, the sum insured, and has its cash values dependent on the investment performance, and the level of premiums paid?

Life insurance contributes directly to the welfare and progress of the country by

For the waiver of premium to be effective

In a life insurance company, risk appraisal is necessary to:

Limited payment life policies are called as such because those policies _____.

Which of the following is a settlement option?

The following statements about “Disability Waiver of Premium Rider” are true, except:

Which of the following statements is false?

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

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

. Jared wants to update his yearly renewable term life insurance policy. Which of the following applies to a yearly renewable term life insurance?

The Insurance Commissioner has the power to revoke or refuse an agent’s license in all of the following instances, except:

In an application, the information that must be disclosed include