Docsity
Docsity

Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity


Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan


Guidelines and tips
Guidelines and tips

Life Insurance Exam Questions and Answers: Prometric, Exams of Insurance law

A collection of multiple-choice questions and answers related to life insurance, covering various aspects such as policy provisions, premium payments, riders, and settlement options. It can be a valuable resource for students preparing for exams or professionals seeking to enhance their knowledge of life insurance concepts.

Typology: Exams

2024/2025

Available from 02/09/2025

tizian-kylan
tizian-kylan 🇺🇸

2.7

(21)

3.8K documents

1 / 9

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
Life Exam Prometric Questions and
Answers Already Passed
All of the following statements about the provisions in a typical modification clause in a life
insurance policy are true EXCEPT: ✔✔The authority to bind the insurance company to policy
changes or modifications is limited to specified persons.
The lowest total annual premium expenditure usually results when premiums are paid:
✔✔Annually
A preferred risk classification for a whole life insurance policy means that: ✔✔The premium rate
is lower than the standard rate for the identical policy
The gross annual premium for a whole life insurance policy is the net premium: ✔✔Plus
Expenses
Which one of the following statements about a life insurance policy rider regarding waiver of
premiums and disability income is true? ✔✔In addition to waiving premiums during periods of
disability, it provides a monthly income.
pf3
pf4
pf5
pf8
pf9

Partial preview of the text

Download Life Insurance Exam Questions and Answers: Prometric and more Exams Insurance law in PDF only on Docsity!

Life Exam Prometric Questions and

Answers Already Passed

All of the following statements about the provisions in a typical modification clause in a life insurance policy are true EXCEPT: ✔✔The authority to bind the insurance company to policy changes or modifications is limited to specified persons.

The lowest total annual premium expenditure usually results when premiums are paid: ✔✔Annually

A preferred risk classification for a whole life insurance policy means that: ✔✔The premium rate is lower than the standard rate for the identical policy

The gross annual premium for a whole life insurance policy is the net premium: ✔✔Plus Expenses

Which one of the following statements about a life insurance policy rider regarding waiver of premiums and disability income is true? ✔✔In addition to waiving premiums during periods of disability, it provides a monthly income.

A withdrawal from a deferred annuity must be authorized by ✔✔The Owner

The beneficiary of a life insurance policy originally is indicated: ✔✔On the life insurance application

Life insurance helps meet estate planning objectives because it is: ✔✔A liquid asset at death

Current interest rates provide a reasonable basis for projecting cash values in a fixed annuity when: ✔✔The current interest rate is close to historical standards

Which provision can provide for the payment of life insurance benefits to the insured while living? ✔✔An accelerated benefit provision

Which one of the following statements about the application for life insurance is true? ✔✔It becomes a permanent part of the insurance contract.

A misleading life insurance policy illustration may result from any of the following EXCEPT ✔✔Reflecting the time value of money

Which one of the following statements is true if an insured purchases a limited payment whole life insurance policy? ✔✔The insured has lifetime protection.

When life insurance is being used to conserve a large estate that consists primarily of non-liquid assets, the primary use of the policy proceeds will be to ✔✔Pay estate taxes

If an insured with an ordinary whole life insurance policy is still living at policy maturity, the insurance company will ✔✔Pay the face amount of the policy

Education funds created by life insurance death benefits are designed to cover the cost of all of the following EXCEPT ✔✔Medical care

Which statement is true about life annuities? ✔✔The insurer uses the law of large numbers to predict life expectancy.

When an annuitant under a life-only annuity dies, what is the amount of the property interest in the contract that will be includable in the annuitant's gross estate? ✔✔zero

Compared to a joint life insurance policy, separate whole life insurance policies on each of the insureds typically result in: ✔✔Higher combined premiums

One parent purchases and is the owner of a juvenile life insurance policy on a child, with the other parent named as beneficiary. If the policy contains a payor benefit, who must become disabled before premiums will be waived? ✔✔Only the parent who purchased the policy

All of the following types of life insurance policies allow the policyowner to make changes in coverage without replacing the policy EXCEPT: ✔✔Modified premium whole life insurance

The trustees of a qualified retirement plan received notice of several claims against the accrued benefits of a key employee, age 52. The trustees must refuse to pay all of the following EXCEPT: ✔✔The Internal Revenue Service presenting an order for collection

An immediate annuity contract provides for: ✔✔The systematic liquidation of the principal and interest

All of the following statements about an accidental death benefit in a life insurance policy are true EXCEPT: ✔✔It is used only in term life insurance policies.

Group life insurance plans generally require participation by: ✔✔75% of eligible employees, under a contributory plan

When a terminated employee elects the conversion option under a group life insurance plan, the new policy premium is based on the: ✔✔Insurer's current rate for other individual applicants

Which qualified plan may be established by a business corporation? ✔✔A simplified employee pension (SEP)

All of the following factors influence the benefit payment amount under a life income annuity EXCEPT: ✔✔The annuitant's age on each contract anniversary

Death benefits under a survivorship life insurance policy covering two insureds are paid: ✔✔In full at the second insured's death

Once a contract is deemed to be a modified endowment contract (MEC), how long does it remain so? ✔✔Forever

Which financial element related to a fixed annuity contract tends to remain in the 3%-5% range? ✔✔The guaranteed minimum interest rate

Deferred annuities are normally purchased by individuals who ✔✔Want tax-deferred growth for retirement funds

Which one of the following factors is considered in determining the amount payable under the interest ONLY settlement option in life insurance policies? ✔✔The amount of the policy proceeds

If a life insurance policy is transferred to another person in exchange for valuable consideration, then the death proceeds may: ✔✔Lose their income tax exempt status

All of the following statements about universal life insurance are true EXCEPT: ✔✔Premiums must be paid on a monthly basis.

The insured died two years after discontinuing annual premium payments of $200 on a $20, whole life insurance policy with a $2,000 cash value and an automatic premium loan provision. How much will the insurer pay to the insured's beneficiary? ✔✔The $20,000 face amount less any policy loans