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Life Insurance Exam Questions and Answers | 100% Pass
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Life Insurance Exam Questions and Answers | 100% Pass Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company? a) Adhesion b) Subrogation c) Warranty d) Aleatory - Answer️️ -Aleatory...

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  • September 1, 2024
  • 32
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • life insurance exam questions and answers 100 p

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  • Life insurance
  • Life insurance

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©SOPHIABENNETT
2024/2025 ACADEMIC YEAR




©SOPHIABENNETT 9/1/24 2024/2025

,Life Insurance Exam Questions and
Answers | 100% Pass


Which of the following best describes the concept that the insured pays a small amount

of premium for a large amount of risk on the part of the insurance company?

a) Adhesion

b) Subrogation

c) Warranty

d) Aleatory - Answer✔️✔️-Aleatory



An insurance contract is an aleatory contract in that it requires a relatively small amount

of premium for a large risk.

What is the waiting period on a Waiver of Premium rider in life insurance policies?

a) 30 days

b) 3 months

c) 5 months

d) 6 months - Answer✔️✔️-6 months.



Most insurers impose a 6-month waiting period from the time of disability until the first

premium is waived.

All of the following are true of key person insurance EXCEPT

a) The plan is funded by permanent insurance only.

,b) There is no limitation on the number of key employee plans in force at any one time.

c) The employer is the owner, payor and beneficiary of the policy.

d) The key employee is the insured. - Answer✔️✔️-The plan is funded by permanent

insurance only.



Key Person coverage may be funded by any type of life insurance.

A key person insurance policy can pay for which of the following?

a) Hospital bills of the key employee

b) Costs of training a replacement

c) Loss of personal income

d) Workers compensation - Answer✔️✔️-Costs of training a replacement.



A key person insurance policy will pay for costs of running the business and replacing

the employee.

Which of the following riders would NOT cause the Death Benefit to increase?

a) Guaranteed Insurability Rider

b) Cost of Living Rider

c) Accidental Death Rider

d) Payor Benefit Rider - Answer✔️✔️-Payor Benefit Rider.



Payor Benefit Rider does not increase the Death Benefit; it only pays the premium if the

payor is disabled or dies. With Guaranteed Insurability Rider, the policyowner can

increase DB at specified ages or events, i.e. marriage or birth of a child; Cost of Living

, Rider increases DB to keep pace with inflation; in Accidental Death Rider, if the insured

dies from an accident, DB is a multiple of the Face Amount.

Which of the following statements is TRUE concerning the Accidental Death Rider?

a) This rider is only available to insureds over the age of 65.

b) It is only available in group insurance.

c) It will pay double or triple the face amount.

d) It is also known as a triple indemnity rider. - Answer✔️✔️-It will pay double or triple the

face amount.



The Accidental Death Rider pays 2 or 3 times the face amount if death is the result of

an accident as defined in the policy and occurs within 90 days of such an accident.

The life insurance policy clause that prevents an insurance company from denying

payment of a death claim after a specified period of time is known as the

a) Reinstatement clause.

b) Insuring clause.

c) Misstatement of Age clause.

d) Incontestability clause. - Answer✔️✔️-Incontestability Clause.



If an insurer wishes to contest any statements on an application, they must do so within

the first two years.

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide

additional protection until his children finished college. He discovered that his policy

a) Required a premium increase each renewal.

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