NV - Life Insurance Practice Final Examination Questions And Answers With Verified Updates

Which of the following is the most likely outcome if an individual who engages in a hazardous occupation applies for a life insurance policy a. The application will be reject b. Dividends normally paid will be withdrawn c. The policy will be issued but rated up d. A fixed period option must be implemented in order for the policy to be issued - c. The policy will be issued but rated up All of the following statements are true with regard to the 10 day free look provision in a life insurance policy EXCEPT a. the 10 day free look period begins when the insured receives the contract b. an insured who returns the policy within the 10 days free look period will receive a full refund of premiums paid c. if a conditional receipt was issued, a pro rata refund will be made if the insured returns the policy within the free look period d. to get a refund, the policy holder must return the policy within 10 days from the date the policy was received - c. if a conditional receipt was issued, a pro rata refund will be made if the insured returns the policy within the free look period Jason is the insured in a $100,000, 10 year renewable term policy. Soon after taking out the policy, he develops a serious heart condition. Which of the following statement is CORRECT? a. Since the condition manifested after the policy was issued, he will not be able to renew his policy. b. Jason will be able to renew his policy c. It will be necessary for Jason to show evidence of insurability in order to renew the policy d. If Jason renews his policy, it will be rated for his health condition. - b. Jason will be able to renew his policy Jane buys a $25,000 policy and her agent tells her that as long as she is approved, the coverage goes into effect immediately. What did Jane's agent give her?a. Consideration b. Conditional receipt c. Return of premium d. Binding receipt - b. Conditional receipt The primary purpose of an annuity is to a. liquidate the separate account of an investment portfolio b. provide income for an individual's retirement c. provide income for a beneficiary d. create an estate immediately - a. liquidate the separate account of an investment portfolio Under what circumstance would an insurance applicant be asked to submit a signed statement of continued good health? a. When the initial premium is not submitted with the application b. When the policy is underwritten as substandard c. In order to receive a preferred rating d. When an inspection report is ordered - a. When the initial premium is not submitted with the application When a firm established a contributor group term life insurance contract, what percentage test must be met for the participation a. 50% b. 60% c. 75% d. 100% - c 75% Louis owns a $10,000 term life policy. He paid the $200 annual premium on Feb 1. Louis fails to pay the second annual premium and dies on Feb 28 of the following year. How much will the beneficiary receive from Louis' insurance company a. $0b. $10,000 c. $9,800 d. Non of the above - c. $9,800 All of the following are common life insurance policy provisions EXCEPT a(n) a. entire contract clause b. insuring clause c. free look period d. premium deductibility option - d. premium deductibility option