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TRAD Simulated Exam ( Latest 2024 / 2025 ) Actual Questions and Answers 100% Correct
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TRAD Simulated Exam ( Latest 2024 / 2025 ) Actual Questions and Answers 100% Correct
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TRAD Simulated Exam1. An insurance company which is owned and controlled by the policy owners who also
share in the earnings of the insurance company in the form of dividends is known as a?
A. Domestic company
B. Stock company
C. Foreign company
D. Mutual company
Answer: D. Mutual company
2. The requirement that the beneficiary should have an insurable interest inthe insured is
satisfied if the insured...
A. and the beneficiary regularly travel to and from work in a carpool arrangement.
B. and the beneficiary are engaged in a similar occupation.
C. belongs to the same club as the beneficiary.
D. is financially indebted to the beneficiary.
Answer: D. is financially indebted to thebeneficiary.
3. The widow of your policyholders tells that she does not want a lump sumpayment, but
she would like to receive monthly allowance for the rest of hernatural life. Which option do
you recommend?
A. periodic annuity option
B. life annuity option
C. fixed income option
D. fixed period option
Answer: B. life annuity option
4. Mr. Sy walked out of his house one night and was never heard of again. Hiswife
wanted to make a claim on his life insurance policy as she believes that he isdead.
Which of the following statements is correct in this case?
A. It would require 6 months before the court could declare him dead
, B. It would be four years before the court could declare him legally dead.
C. It would be seven years before the court could declare him legally dead.
D. The company would pay immediately
Answer: C. It would be seven years before thecourt could declare him legally dead.
5. The following statements concerning insurable interest are correct, except:
A. Everyone has an insurable interest in his own life.
B. It is deemed to exist if economic loss would occur at the death of theinsured.
C. It is deemed to exist by virtue of a relationship by blood or by marriage.
D. It is important for purposes of underwriting the risk.
Answer: D. It is important forpurposes of underwriting the risk.
6. A person's human economic value is defined as the...
A. Total value of the individual's tax contribution to the national economy
B. Total value of the assets and any future earnings derived therefrom.
C. Total value of his physical assets
D. The amount of capital required to replace family income needs
Answer: B. Total valueof the assets and any future earnings derived therefrom.
7. The Insurance code specifies that a contract does not take effect unless...
A. Payment of the first premium is made to the insurer or its authorized agent
B. The insured has named in the policy no fewer than two beneficiaries
C. The policy is delivered to an insured, his assignee, agent or beneficiary
D. No change has taken place in the insurability of the life to be insured between the time the
application was completed and the time the policy was
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