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Life Exam Prometric.
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Life Exam Prometric.
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Life Exam PrometricA misleading life insurance policy illustration may result from any of the following
EXCEPT - ANS-Reflecting the time value of money
A preferred risk classification for a whole life insurance policy means that: - ANS-The
premium rate is lower than the standard rate for the identical policy
A rated life insurance policy is issued at: - ANS-Substandard risk rates
A surviving spouse without dependent children is eligible for Social Security survivor
benefits at age: - ANS-60
A withdrawal from a deferred annuity must be authorized by - ANS-The Owner
All of the following are associated with the interest-adjusted net cost method of life
insurance policy comparison EXCEPT - ANS-Separate investment account
All of the following are reasons for purchasing life insurance on a spouse who does not
work for pay outside the home EXCEPT: - ANS-To guarantee that newborn children will
be eligible for life insurance
All of the following factors influence the benefit payment amount under a life income
annuity EXCEPT: - ANS-The annuitant's age on each contract anniversary
All of the following statements about a life insurance policy loan are true EXCEPT -
ANS-Failure to repay the loan when due terminates the policy.
All of the following statements about an accidental death benefit in a life insurance
policy are true EXCEPT: - ANS-It is used only in term life insurance policies.
All of the following statements about the ownership provision in a life insurance policy
are true EXCEPT: - ANS-It states the insurer will pay the proceeds to the beneficiary
upon receiving proof of the insured's death.
All of the following statements about the provisions in a typical modification clause in a
life insurance policy are true EXCEPT: - ANS-The authority to bind the insurance
company to policy changes or modifications is limited to specified persons.
, All of the following statements about universal life insurance are true EXCEPT: -
ANS-Premiums must be paid on a monthly basis.
All of the following types of life insurance policies allow the policyowner to make
changes in coverage without replacing the policy EXCEPT: - ANS-Modified premium
whole life insurance
An immediate annuity - ANS-Is purchased with a single premium
An immediate annuity contract provides for: - ANS-The systematic liquidation of the
principal and interest
Compared to a joint life insurance policy, separate whole life insurance policies on each
of the insureds typically result in: - ANS-Higher combined premiums
Current interest rates provide a reasonable basis for projecting cash values in a fixed
annuity when: - ANS-The current interest rate is close to historical standards
Death benefits under a survivorship life insurance policy covering two insureds are paid:
- ANS-In full at the second insured's death
Deferred annuities are normally purchased by individuals who - ANS-Want tax-deferred
growth for retirement funds
Education funds created by life insurance death benefits are designed to cover the cost
of all of the following EXCEPT - ANS-Medical care
Group life insurance plans generally require participation by: - ANS-75% of eligible
employees, under a contributory plan
Group term life insurance can be provided at low rates for all of the following reasons
EXCEPT: - ANS-It accumulates cash values in an efficient manner.
If a life insurance policy is transferred to another person in exchange for valuable
consideration, then the death proceeds may: - ANS-Lose their income tax exempt
status
If an insured with an ordinary whole life insurance policy is still living at policy maturity,
the insurance company will - ANS-Pay the face amount of the policy
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