TRADITIONAL EXAMINATION
Quiz by CELESTE ESCARDA
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50 questions
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- Q1A life insurance agent is permitted toGuarantee dividends on participating policiesWaive any of the requirement of the companyPrepare routine proposals for life insurance coverageApprove an application for insurance60s
- Q2Claire is considering purchasing either an endowment or term life policy. What do these policies have in common?Renewal and conversion privileges are availableNo cash value is available to the policy owner during the term of the policyInsurance protection will be limited to a specified periodA benefit will be paid at the end of the period of coverage if the person is then alive60s
- Q3A 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 makes a collateral assignmentHe appoints an irrevocable beneficiaryHe makes an absolute assignmentNone of the above60s
- Q4If premiums are being waived under a waiver of premiums benefit and the insured dies, what would the proceeds be?Cash surrender valuesFace amountReduced paid-up face amountFace amount less unpaid premiums60s
- Q5Which of the following is a living benefit in an insurance policy?Cash surrender valueWaiver of premium for disabilityGuaranteed insurability benefitRight to change beneficiaries60s
- Q6Insurable interest is necessary when a person insures another ____.To establish that there is a genuine riskSo that the person being insured may be properly appraisedTo make sure that he will pay the premiumsBecause interest on premiums must be entered60s
- Q7Your 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 insurabilityTo furnish information on which the contract of life insurance may be writtenTo convey to the company the desire of the applicant to obtain insuranceGive details pertaining to non-forfeiture options60s
- Q8Which of the following does a limited pay life policy provides?The highest level of savings for the insured within a specified term of yearsLow-cost protection only for a limited term of years with no savingsProtection with premiums payable for life and a low level of savings as an alternative to continued protection in old ageProtection for the life of the policyholder with premiums payable for a limited term of years60s
- Q9When 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 ageSlightly less than the face amountThe face amountThe sum of the premium paid60s
- Q10Group life insurance covers ____.Death of the employee regardless of cause except suicide during the first year (sometimes two years)Accidental death onlyOnly death by heart attack, pneumonia or cancerDeath provided it is during working hours and in the place of employment60s
- Q11Your 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?Irrevocable primary beneficiaryCollateral assigneeAbsolute assigneeRevocable primary beneficiary60s
- Q12Mr. 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?It will require 6 months before the court could declare him deadThe company will pay immediately.It will take four years before the court could declare him legally dead.It will take seven years before the court could declare him legally dead60s
- Q13In life insurance, which of the following does the term “substandard rates” generally refer to?Premiums charged to persons who are considered to be higher-than-average risk categoriesMortality rates that are lower than those expected by the company according to its mortality tableMortality rates that are lower than the rates suggested by the regulatory authoritiesPremiums charged for policies with low amounts60s
- Q14Life insurance policy loans are limited to an amount which with interest will not exceed the ___.Total premiums paidNet amount of riskPresent value of future premiumsCash value of the policy60s
- Q15What 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?Any transactions or changes in the policy would need the endorsement of the irrevocable beneficiaryBorrow minimal cash loanAvail of a non-forfeiture optionAlter the dividend option now in effect60s