UTAH Life Insurance Test Questions Correctly Answered.
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Course
UTAH.
Institution
UTAH.
UTAH Life Insurance Test Questions Correctly Answered.
Which of the following is NOT true about social insurances?
A Partioipation Is mandatory and automatic for all elipible citizens
B Social insurance provides equal benefits to all citizens that contribute
C The government, as an insuran...
UTAH Life Insurance Test Questions
Correctly Answered.
Which of the following is NOT true about social insurances?
A Partioipation Is mandatory and automatic for all elipible citizens
B Social insurance provides equal benefits to all citizens that contribute
C The government, as an insurance provider, has a clear and strong monopoly
D Benefits are prescribed by law any changes to the benefit structure and provisions are made by
changes in the law - CORRECT ANSWER B Social insurance provides equal benefits to all citizens that
contribute
Which of the following statements regarding an insurable risk is FALSE?
A The chance of loss must be calculable
B There must be a large number of homogeneous units
C The loss must cause an economic hardship on the insurer
D The insured event must be-accidental - CORRECT ANSWER The loss must cause an economic hardship
on the insurer
(INSURED)
Which Term Life insurance policy would have the highest initial premium, all else being equal?
A 5-year Term
B 1-year Term
C 10-year Term
D 20-year Term - CORRECT ANSWER D 20-year Term
The longer the term period, the higher the initial term premium.
Universal Life provides for an increasing death benefit only if the applicant chooses:
,A A return of premium rider to the plan
B To include an inflation rider at the time of application
C Death Benefit Option B
D To add an increasing term rider to the policy - CORRECT ANSWER C Death Benefit Option B
Option B pays the face amount stated in the contract that is level term an increasing death benefit.
All of the following are true about indeterminate premium whole life policies, except:
A The policy has adjustable premiums
B The company charges a current premium based on current estimates
C They are like participating whole life
D There is a maximum guaranteed premium stated in the policy - CORRECT ANSWER C They are like
participating whole life
All of the following policies end when an insured dies, except:
A Joint Life
B Variable Universal Life
C Juvenile Life
D Joint Survivorship - CORRECT ANSWER D Joint Survivorship
Which of the following is false in regards to a variable whole life's death benefit?
A The death benefit is tied to and vanes with the performance of the separate account
B While the separate account values may decrease, the policy will neer pay less than the guaranteed
death benefit in the general account
C Death benefits are recalculated monthly
D Policy loans are available from either the general account or the-separate account and will reduce the
overall payout until repaid - CORRECT ANSWER C Death benefits are recalculated monthly
Which of the following best describes the return of premium rider?
A An increasing term benefit that matches the cumulative premiums paid
, B A benefit similar to waiver of premium, but is free of charge
C A level term rider in the amount of 20 annual premiums
D An increasing term benefit that matches the cash value accumulation - CORRECT ANSWER A An
increasing term benefit that matches the cumulative premiums paid
Which of the following life insurance policies has a current and guaranteed maximum premium stated in
the policy?
A Adjustable Life
B Ordinary Straight Whole Life
C Indeterminate Premium Life
D Limited Premium Payment Whole Life - CORRECT ANSWER C Indeterminate Premium Life
What is the 'waiver of premium' called on a Universal Life insurance policy?
A Monthly premium waiver
B Waiver of flexible premium
C Disability premium income
D Waiver of Cost of Insurance - CORRECT ANSWER D Waiver of Cost of Insurance
Which of the following provides the basis for the benefit amount paid to an insured under a disability
income rider?
A The face amount of the policy
B The length of time income payments are to be paid out
C The amount of monthly benefit selected
D The elimination period - CORRECT ANSWER A The face amount of the policy
The cash value accumulation in a life insurance policy:
A Is always equal to the death benefit
B Can be used for loans or later as retirement income
C Can only be used when the policy endows
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