1 - Basic Principles of Life and Health Insurance and Annuities
Policy Premiums and Beneficiaries
What type of policy has a level premium throughout the term of the contract? Options: a. Level
premium policy; b. Decreasing premium policy; c. Increasing premium policy; d. Variable premium poli...
1 - Basic Principles of Life and Health Insurance and Annuities
Policy Premiums and Beneficiaries
What type of policy has a level premium throughout the term of the contract? Options: a. Level
premium policy; b. Decreasing premium policy; c. Increasing premium policy; d. Variable premium policy
Answer: a. Level premium policy
Which type of beneficiary cannot be changed without consent? Options: a. Revocable beneficiary; b.
Irrevocable beneficiary; c. Primary beneficiary; d. Secondary beneficiary
Answer: b. Irrevocable beneficiary
How many hours of continuing education must an insurance producer complete to maintain their
license? Options: a. 12 hours; b. 18 hours; c. 24 hours; d. 30 hours
Answer: c. 24 hours
Accidental Death and Dismemberment
What does an accidental and dismemberment policy pay out if the death occurs as a result of an
accident? Options: a. As a result of an accident regardless of when the accident occurs; b. Only if the
accident occurs during the term of the policy; c. Only if the accident occurs within 6 months of the policy
effective date; d. Never
Answer: a. As a result of an accident regardless of when the accident occurs
Insurance Clauses and Riders
What type of clause refers to a class of insurance that provides coverage for specified events? Options:
a. Insuring clause; b. Exclusion clause; c. Condition clause; d. Exemption clause
Answer: a. Insuring clause
Employer-Sponsored Life Insurance
, Under Minnesota Law, what can an employer do if an employee is laid off and no longer eligible for
group coverage? Options: a. The employer must cancel the employee's life insurance coverage
immediately; b. The employer must inform the employee of the amount payable to continue coverage
for up to 18 months; c. The employer must offer the employee individual life insurance coverage at
group rates; d. The employer must provide no further coverage options
Answer: b. The employer must inform the employee of the amount payable to continue coverage for up
to 18 months
This law made it clear that continued regulation of insurance by the states was in the public's best
interest. However, it also made possible the application of federal antitrust law.
A life insurance company that shares its suplus earnings with its insureds is known as?
A) a participating company.
B) a fraternal organization.
C) an association.
D) an admitted company. ✔️A) a participating company.
Participating insurance companies share its surplus earnings with its insureds.
All of the following are systems that support the sale of insurance through agents and brokers EXCEPT.
A) Career Agency System.
B) Fraternal Benefit Society System.
C) Personal Producing General Agency System.
D) Independent Agency System. ✔️B) Fraternal Benefit Society System.
All of these are actual insurance agency systems except for Fraternal Benefit Society Systems.
Dividends from a stock company are paid to stockholders, whereas in a mutual company dividends are?
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