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Life insurance - practice test questions.
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Life insurance - practice test questions.
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Life insurance - practice test questionsA special characteristic of insurance contract where equal value is not exchanged
between parties is known as: - ANS-Aleatory
Life insurance contracts are ___ agreements - ANS-Unilateral
What is the proper definition of "take it or leave it" contracts written by insurer? -
ANS-Adhesion
using the human value approach, the best way to figure out the amount of death benefit
is based on?:
A. proposed insured's life span
B. proposed insured's retirement date
C. proposed insured's health status
D. proposed insured's potential earnings - ANS-D. proposed insured's potential
earnings
an insurer pays a refund from the surplus of profits to the holder of a participating policy.
what is this payment called?
A. unlawful rebate
B. dividend
C. annuity
D. not legal, as only stock companies pay dividends - ANS-B. policy dividend
the non-forfeiture provision that would give the insured the most amount of coverage
would be?
A. cash surrender value
B. extended term insurance
C. reduced paid up insurance
D. automatic premium loan - ANS-B. extended term insurance
if you choose the settlement option of receiving fixed monthly installments or fixed
amounts, you may receive an amount that is:
A. more than the face amount
B. less than the face amount
C. the same as the face amount
D. none of the above - ANS-A. more than the face amount.
, an individual, who wishes to provide a retirement income for himself that will also
provide retirement income for his wife in the event that he dies, should purchase which
of the following?
A. life annuity with period certain
B. a refundable life annuity
C. joint and survivor life annuity
D. immediate annuity - ANS-C. joint and survivor life annuity
a pure life annuity offers protection against the risk of:
A. death during the earning years
B. disability during the earning years
C. outliving one's income
D. death after the age of retirement - ANS-C. outliving one's income
a ____ is a product used to accumulate funds and later liquidate that amount?
A. industrial life policy
B. term life policy
C. annuity
D. life paid up at 65 - ANS-C. annuity
the period of time during which a deferred annuity builds its value is referred to as?
A. an accumulation period
B. an annuity period
C. an elimination period
D. a waiting period - ANS-A. accumulation period
a life annuity with a 10-year period certain:
A. will pay the annuitant only for 120 months
B. is guaranteed to pay for a minimum of 120 months either to the annuitant or
beneficiary
C. will pay the annuitant for 10 years and continue for 10 years, but the amount will be
less
D. will pay the annuitant for life and the beneficiary for 10 years after the death of the
annuitant - ANS-B. is guaranteed to pay for a MINIMUM of 120 months either to the
annuitant or beneficiary
Robert works for a small business that just offered employees a group heath insurance
plan. 75% of eligible employees must sign up. Which statement is true?
A. This is non-contributory plan
B. This is a contributory plan
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