RMI 211 Final Exam Practice Questions and
Answers (100% Pass)
A contingent beneficiary in a life insurance policy has the right to: -
Answer✔️✔️-receive the policy proceeds if the primary beneficiary dies
before the insured
A legal reserve in life insurance is a result of: - Answer✔️✔️-excess
premiums in the early policy years being invested at compound interest.
All of the following are nonforfeiture options found in cash value life
insurance EXCEPT:
Cash Value
Reduced Paid-Up Insurance
Extended Term Insurance
Reduction of Premiums - Answer✔️✔️-reduction of premiums
Under the waiver of premium provisions, if an insured becomes disabled:
1. premiums are continued to be paid by the insurance company on behalf
of the insured
2. premiums paid by the insured are waived by the insurance company -
Answer✔️✔️-2. only
Ann is considering the purchase of a life insurance policy with these
characteristics: flexible premium payments, the insurance and savings
components are separate, the interest rate credited to the cash value is tied
to a changing market interest rate but a minimum interest rate is
guaranteed, and a monthly administrative fee is charged. Ann is
considering buying: - Answer✔️✔️-universal life insurance
Becky is considering the purchase of a whole life policy on her own life.
She is concerned that if she becomes disabled, paying premiums will
become a burden. Which provision can Becky attach to her life insurance
policy to address this concern? - Answer✔️✔️-waiver-of-premium provision
All of the following statements about ordinary life insurance are true
EXCEPT:
There is a build-up of cash value that can be borrowed by the policyholder.
It offers the policyholder the flexibility to meet a wide variety of financial
objectives.
Premiums are level throughout the policy period.
The face amount of the policy is paid if the insured lives to age 65. -
Answer✔️✔️-The face amount of the policy is paid if the insured lives to age
65.
All of the following statements about the conversion of a term policy are
true EXCEPT:
Under an attained age conversion, the premium is based on the insured's
attained age at the time of conversion.
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