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Trad Mock Exam ( Latest 2024 / 2025 ) Actual Questions and Answers 100% Correct
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Trad Mock Exam ( Latest 2024 / 2025 ) Actual Questions and Answers 100% Correct
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Trad Mock Exam1. An agent who determine a prospects complete financial requirements preparatory to
offering him a policy using the correct selling approach knownas
a. Counsellor selling
b. Total needs selling
c. Planned selling
d. Multiple products selling
Answer: b. Total needs selling
2. The company will allow a policy change from a higher premium to a lowerpremium
provided the insured
a. Buys a new plan altogether
b. Presents satisfactory evidence of insurability
c. Momentarily assigns the policy to the company
d. Obtains written consent from his or her spouse
Answer: b. Presents satisfactoryevidence of insurability
3. Both endowment and term life insurance policies provide that
a. No cash value is available to the policy owner during the term of the policy
b. Renewals and conversion privileges are available
c. A benefit will be paid at the end of the period of coverage if the personinsured is then alive
d. Insurance protection will be limited to a specific period
Answer: d. Insurance protection will be limited to a specific period
4. A policy which permits the policyholder to vary the level of premium or the sum insured,
and has its cash values dependent upon the investment performance and the level of premium
paid is know as policy.
a. Participating whole life policy
b. Participating endowment
c. Universal life
d. None of the above
Answer: c. Universal life
5. Which of the following is the least important reason for requiring that theinsurance agents
be licensed?
a. To established and maintained high professional and ethical standards
b. To protect the public
c. To give the government adequate control over the conduct of agents
d. To provide additional income to the government through licensed fees
, Answer: d. Toprovide additional income to the government through licensed fees
6. Indicate which of the following is not a function of an application for lifeinsurance
policy.
a. To give details pertaining to non-forfeiture options
b. To furnish information on which contact of life insurance may be written
c. To furnish initial information as to insurability
d. To convey to the company the desire of the applicant to obtain insurance
Answer: a.To give details pertaining to non-forfeiture options
7. Paid- up additions:
a. Affect both cash and loan value of the policy
b. Don't affect the cash value of the policy
c. Don't affect the loan or cash value of the policy
d. Only affect the cash value of the policy
Answer: c. Don't affect the loan or cash valueof the policy
8. Non-forfeiture provision are included in a whole life and endowment policies to assure
the policy owner that certain minimum policy benefits shall remain with him even under
certain changed condition. Non-forfeiture valuesguarantee the policy owner that
a. No death claim will be denied for any misstatement on the application
b. Any guaranteed policy values will belong to the policy owner even ifpremium payments
are discounted.
c. The face amount of the policy will remain the same even if the insured'shealth becomes
impaired
d. The premium on the policy will remain the same even when another beneficiary is added to
the policy
Answer: b. Any guaranteed policy values will belong to thepolicy owner even if premium
payments are discounted.
9. In certain situations a company may file interpleader actions with a Courtof Law. This
remedy is used to
a. Determined if the cause of the Insured's death was an excluded risk
b. Decide conflicting claims on the same insurance proceeds
c. Resolve the question of insurable interest
d. Recommend the best settlement options of the beneficiary
Answer: b. Decide conflicting claims on the same insurance proceeds
10. Purchasing a continuous-premium, whole life policy rather than a limit-ed-payment,
whole life policy gives the policy owner the advantage of
a. Concentration of premium payments during the period of highest earnings
b. Liberal risk selection procedures
c. More insurance protection for the same annual premiums outlay
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