A PACKAGE DEAL FOR Life Insurance Exam 2023 with 100% correct answers

J has a life policy with the Guaranteed Insurability rider. J has just celebrated their 42nd birthday and realizes that she wants to use her rider and buy more death benefit. Which of the following will apply to J's request? A: The insurer will allow J to add more insurance without proving insurab...

Upon completion of the application At what point must a life insurance applicant be informed of their rights to fall under the Fair Credit Reporting Act? Policyholders Who elects the governing body of a mutual insurance company? Fair Credit Reporting Act An insurance applicant MUST ...

Insurable Receipt The reciept given to a life insurance applicant when the application is completed and the initial premium is received is called a(n) Representations Statements in the application for insurance that are believed to be true to the best of the applicants knowledge are ...

Basic Medical Expense policies Provide coverage for Hospital, Surgical and Physicians Medical Expense. -Purchased as a individual or group policy. -provide first dollar coverage (no deductibles). -limited benefit periods and low coverage limits. Major Medical Expense Policy -A supplement...

An agent who sells an individual life insurance policy in NC MUST deliver to the policyowner A policy summary and buyer's guide All of the following actions are considered rebating EXCEPT Sharing commissions with other licensed and appointed agents What benefit does the Payor Clause...

contract that transfers risk of financial loss to an insurer insurace uncertainty about whether a loss will occur risk 2 types of risk Pure and Speculative type of risk: -possibility of loss or gain -loss is not insurable speculative risk type of risk: -only loss c...

What is meant by referring to an insurance policy as a unilateral contract? Only one party makes a legally enforceable promise. When must insurance records of insurance agents and brokers be made available to the Insurance Commissioner? At all times Any situation that presents the po...

Which of the following premium modes would result in the HIGHEST annual cost for an insurance policy? Monthly The paid-up addition option uses the dividend To purchase a smaller amount of the same type of insurance as the original policy. Which of the following statements is incorrec...

UNIT 1: The term used to describe the individual who is covered by the insurance is A. insurer B. insured C. policyowner D. risk B Which of the following is a risk? A. A car may need to have new brakes installed after several years of regular driving. B. An individual may need medical ...

What is the prerequisite for receiving a commission from an insurance transaction? License for same type of insurance transaction. When would life ins. proceeds be taxable by the Federal government? If there is a transfer for value (policy is sold to another person) A qualified plan ...

P wants to name her husband as the beneficiary of her life policy. However, she wishes to retain all of the rights of ownership. P should have her husband named as the: A.irrevocable beneficiary B.revocable beneficiary C.secondary beneficiary B A contract that has as its basic funct...

The ownership provision entities the policy owner to do all of the following EXCEPT a) Assign the policy. b) Designate a beneficiary. c) Set premium rates. d) Receive a policy loan. c) Set premium rates. The insurer sets premium rates based upon underwriting considerations. Which of...

Pooling of Risks A large group of people contribute money to a fund out of which their losses can be paid Policyowner is the person or org that applies for the policy and pays the premium Actuarial Tables Are statistical tables that are used when calculating premium rates and mortal...

Insurance (General concept) - transfers the risk of loss from an individual to an insurer - based on the principle of indemnity - based on the principle of risk (risk pooling) insurable interest (General Concept) - must exist at the time of the application - insuring one's own life, f...