Question 1

All of the following will impact premium rates except?

Accepted Answer

A) Mortality 
B) Morbidity 
C) Loss ratios 
D) Expenses 
A) Mortality 
B) Morbidity 
C) Loss ratios 
D) Expenses

Question 2

A life insurance policy can have more than one beneficiary set-up in succession. If the primary beneficiary dies prior to the insured, which beneficiary would receive payments?

Accepted Answer

A) The contingent beneficiary would receive the payments 
B) The tertiary beneficiary would receive the payments 
C) The secondary beneficiary would receive the payments 
D) Only one beneficiary can be named. Otherwise the insurance company receives the payments 
A) The contingent beneficiary would receive the payments 
B) The tertiary beneficiary would receive the payments 
C) The secondary beneficiary would receive the payments 
D) Only one beneficiary can be named. Otherwise the insurance company receives the payments

Question 3

What happens when an insured has guaranteed insurability?

Accepted Answer

A) They can purchase additional insurance at a discount based on their age. 
B) They can purchase additional insurance at specified times in their policy for discounted premiums 
C) They can purchase additional insurance without a medical exam at specified ages, dates, and events 
D) They can purchase additional insurance with premiums remaining the same 
A) They can purchase additional insurance at a discount based on their age. 
B) They can purchase additional insurance at specified times in their policy for discounted premiums 
C) They can purchase additional insurance without a medical exam at specified ages, dates, and events 
D) They can purchase additional insurance with premiums remaining the same

Question 4

What is a "rider" on an insurance policy?

Accepted Answer

A) A special provision used to exclude benefits from a policy 
B) A special provision used to provide benefits not in the original policy 
C) A special provision used to keep premiums level over the policy 
D) A special provision used to prove insurability for a new policy 
A) A special provision used to exclude benefits from a policy 
B) A special provision used to provide benefits not in the original policy 
C) A special provision used to keep premiums level over the policy 
D) A special provision used to prove insurability for a new policy

Question 5

What is a retirement income policy?

Accepted Answer

A) Provides income to the insured's beneficiary 
B) Provides income before retirement 
C) Accumulates money for retirement with a death benefit 
D) Accumulates money for the beneficiary at retirement 
A) Provides income to the insured's beneficiary 
B) Provides income before retirement 
C) Accumulates money for retirement with a death benefit 
D) Accumulates money for the beneficiary at retirement

Question 6

If the owner of an annuity contract stops making premium payments prior to payout, the annuitant has non-forfeiture options available based on the cash value accumulation prior to stop payment of premiums. What is one of the more common options?

Accepted Answer

A) Permit the contract to become a paid up contract where the payments are based on the paid amount 
B) Permit the contract to become paid and refund the premiums to the annuitant less any fees, costs, and penalties 
C) Permit the contract to be in forbearance and allow the annuitant time to catch up on their payments 
D) Permit the contract to be renegotiated for a better premium rate. 
A) Permit the contract to become a paid up contract where the payments are based on the paid amount 
B) Permit the contract to become paid and refund the premiums to the annuitant less any fees, costs, and penalties 
C) Permit the contract to be in forbearance and allow the annuitant time to catch up on their payments 
D) Permit the contract to be renegotiated for a better premium rate.

Question 7

If held to term, equity indexed annuities are considered which of the following?

Accepted Answer

A) Fixed 
B) Variable 
C) Flexible 
D) Special 
A) Fixed 
B) Variable 
C) Flexible 
D) Special

Question 8

If Kristie wants immediate coverage with her application contingent on the outcome of the underwriting and pays the first full premium payment, what will the insurance provider give her?

Accepted Answer

A) Temporary receipt 
B) Binding receipt 
C) Conditional receipt 
D) Inspection receipt 
A) Temporary receipt 
B) Binding receipt 
C) Conditional receipt 
D) Inspection receipt

Question 9

Limit of liability is more commonly referred to as ______________ in the life and health insurance field.

Accepted Answer

A) Maximum benefit amount 
B) Maximum time limit 
C) Maximum deductible amount 
D) Maximum claim amount 
A) Maximum benefit amount 
B) Maximum time limit 
C) Maximum deductible amount 
D) Maximum claim amount

Question 10

An annuity is a combination of three things. What are these three things?

Accepted Answer

A) Deposits, interests, and principal 
B) Deposits, principal, and taxes 
C) Deposits, payments, and taxes 
D) Deposits, interests, and mortality rates 
A) Deposits, interests, and principal 
B) Deposits, principal, and taxes 
C) Deposits, payments, and taxes 
D) Deposits, interests, and mortality rates

Question 11

Principal earns interest on all types of annuities. The interest is

Accepted Answer

A) Earned on the principal each time 
B) Earned on the principal and accrued interest 
C) Earned on the interest only 
D) Earned on the principal plus a percentage 
A) Earned on the principal each time 
B) Earned on the principal and accrued interest 
C) Earned on the interest only 
D) Earned on the principal plus a percentage

Question 12

There are many factors that are considered when determining the amount a beneficiary will receive each time a payment is made under the fixed period option. Which of these factors is not considered?

Accepted Answer

A) The principal amount 
B) The interest earned 
C) The age of the beneficiary 
D) The length of time payments will be made. 
A) The principal amount 
B) The interest earned 
C) The age of the beneficiary 
D) The length of time payments will be made.

Question 13

In order to sell certain life insurance policies, an individual needs more than a state insurance license. Which of the following can you not sell with only a state insurance license?

Accepted Answer

A) Variable universal life insurance policy 
B) Econometric life insurance policy 
C) Adjustable life insurance policy 
D) Indeterminate premium life insurance policy 
A) Variable universal life insurance policy 
B) Econometric life insurance policy 
C) Adjustable life insurance policy 
D) Indeterminate premium life insurance policy

Question 14

What are the accounting measures of an insurer's liabilities to its policyholders?

Accepted Answer

A) Reserves 
B) Premiums 
C) Assets 
D) Reinsurance 
A) Reserves 
B) Premiums 
C) Assets 
D) Reinsurance

Question 15

What is one advantage of using term insurance?

Accepted Answer

A) Term insurance can be flexible for the insured 
B) Term insurance is temporary protection 
C) Term insurance is death protection 
D) Term insurance is initially higher cost but decreases in time 
A) Term insurance can be flexible for the insured 
B) Term insurance is temporary protection 
C) Term insurance is death protection 
D) Term insurance is initially higher cost but decreases in time

Question 16

When the insured misses a premium payment, how long is the typical grace period before the policy terminates for non-payment?

Accepted Answer

A) 1 week from the due date 
B) 2 weeks from the due date 
C) 1 month from the due date 
D) 2 months from the due date 
A) 1 week from the due date 
B) 2 weeks from the due date 
C) 1 month from the due date 
D) 2 months from the due date

Question 17

Which of the following is not taken into account in the human life value approach for life insurance policies?

Accepted Answer

A) Needs for illness and burial 
B) Individual's annual expenses 
C) Individual's net annual salary 
D) Number of years the individual had left to work. 
A) Needs for illness and burial 
B) Individual's annual expenses 
C) Individual's net annual salary 
D) Number of years the individual had left to work.

Question 18

When determining the amount and kind of insurance an individual needs, an agent should consider other income and benefit sources the applicant has or will have. Which of the following is not an income or benefit figured into this consideration?

Accepted Answer

A) Gifts 
B) Medicare 
C) Annuities 
D) Rental property 
A) Gifts 
B) Medicare 
C) Annuities 
D) Rental property

All of the following will impact premium rates except?

A life insurance policy can have more than one beneficiary set-up in succession. If the primary beneficiary dies prior to the insured, which beneficiary would receive payments?

What happens when an insured has guaranteed insurability?

What is a "rider" on an insurance policy?

What is a retirement income policy?

If the owner of an annuity contract stops making premium payments prior to payout, the annuitant has non-forfeiture options available based on the cash value accumulation prior to stop payment of premiums. What is one of the more common options?

If held to term, equity indexed annuities are considered which of the following?

If Kristie wants immediate coverage with her application contingent on the outcome of the underwriting and pays the first full premium payment, what will the insurance provider give her?

Limit of liability is more commonly referred to as ______________ in the life and health insurance field.

An annuity is a combination of three things. What are these three things?

Principal earns interest on all types of annuities. The interest is

There are many factors that are considered when determining the amount a beneficiary will receive each time a payment is made under the fixed period option. Which of these factors is not considered?

In order to sell certain life insurance policies, an individual needs more than a state insurance license. Which of the following can you not sell with only a state insurance license?

What are the accounting measures of an insurer's liabilities to its policyholders?

What is one advantage of using term insurance?

When the insured misses a premium payment, how long is the typical grace period before the policy terminates for non-payment?

Which of the following is not taken into account in the human life value approach for life insurance policies?

When determining the amount and kind of insurance an individual needs, an agent should consider other income and benefit sources the applicant has or will have. Which of the following is not an income or benefit figured into this consideration?

Health: Disability

Health: Health and Dental

Health: Health Maintenance Organizations

Health: Tax Issues in Life Insurance

Health: Theory in Life Insurance

Comprehensive Examination: English and Language Usage

Comprehensive Examination: Mathematics

Comprehensive Examination: Reading

Comprehensive Examination: Science

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Exam 1: Health: Health and Life Insurance

All of the following will impact premium rates except?

A life insurance policy can have more than one beneficiary set-up in succession. If the primary beneficiary dies prior to the insured, which beneficiary would receive payments?

What happens when an insured has guaranteed insurability?

What is a "rider" on an insurance policy?

What is a retirement income policy?

If the owner of an annuity contract stops making premium payments prior to payout, the annuitant has non-forfeiture options available based on the cash value accumulation prior to stop payment of premiums. What is one of the more common options?

If held to term, equity indexed annuities are considered which of the following?

If Kristie wants immediate coverage with her application contingent on the outcome of the underwriting and pays the first full premium payment, what will the insurance provider give her?

Limit of liability is more commonly referred to as ______________ in the life and health insurance field.

An annuity is a combination of three things. What are these three things?

Principal earns interest on all types of annuities. The interest is

There are many factors that are considered when determining the amount a beneficiary will receive each time a payment is made under the fixed period option. Which of these factors is not considered?

In order to sell certain life insurance policies, an individual needs more than a state insurance license. Which of the following can you not sell with only a state insurance license?

What are the accounting measures of an insurer's liabilities to its policyholders?

What is one advantage of using term insurance?

When the insured misses a premium payment, how long is the typical grace period before the policy terminates for non-payment?

Which of the following is not taken into account in the human life value approach for life insurance policies?

When determining the amount and kind of insurance an individual needs, an agent should consider other income and benefit sources the applicant has or will have. Which of the following is not an income or benefit figured into this consideration?

Health: Disability

Health: Health and Dental

Health: Health Maintenance Organizations

Health: Tax Issues in Life Insurance

Health: Theory in Life Insurance

Comprehensive Examination: English and Language Usage

Comprehensive Examination: Mathematics

Comprehensive Examination: Reading

Comprehensive Examination: Science

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