RHODE ISLAND LIFE & HEALTH INSURANCE
EXAM QUESTIONS WITH VERIFIED
SOLUTIONS
Which provision prevents an insurer from changing the terms of the
contract with the policyowner by referring to documents not found
within the policy itself --CORRECT ANSWER--Entire Contract
provision
An applicant's medical information received from the medical
information Bureau (MIB) may be furnished to the --CORRECT
ANSWER--Applicant's physician
Insurance policies are considered aleatory contracts because --
CORRECT ANSWER--Performance is conditioned upon a future
occurrence
In the event that an insured's premium is not paid by the due date, the
result will be? --CORRECT ANSWER--Coverage will continue for
not more than a maximum of 31 days, beyond which time the policy
will lapse
Page 1 of 45
,Which of the following life insurance policies combine term
insurance with an investment element? --CORRECT ANSWER--
Universal Life
Whose life is covered on a life insurance policy that contains a payor
benefit clause --CORRECT ANSWER--Child
Under a Graded Premium Whole Life policy, --CORRECT
ANSWER--The premium increases each year during the early years
of the contract and remains the same after that time.
Under a Renewable Term policy, --CORRECT ANSWER--The
renewal premium is calculated on the basis of the insured's attained
age
What type of life policy covers two people and pays upon the death of
the last insured? --CORRECT ANSWER--Survivorship
Variable life products require a producer to --CORRECT ANSWER--
Hold a life insurance license and a securities license
Page 2 of 45
,A(n) _____ rider may be used to include coverage for children under
their parents' life insurance policy. --CORRECT ANSWER--term
A term life rider offer the insured --CORRECT ANSWER--
Additional coverage
The Department of business regulations may revoke a producer's
license for each of the following offenses except --CORRECT
ANSWER--Violating an insurer's internal control requirements
The agreement in a life insurance contract that states a specific sum of
money will be paid to a designated person upon an insured's death is
called a --CORRECT ANSWER--insuring agreement
Which of the following statements is a producer Not permitted to say
--CORRECT ANSWER--If my company fails to pay a claim, the
guaranty Association will pay
A producer has influenced an existing policy owner to convert an
existing whole-life policy to reduced Paid-up insurance. The producer
then sells the policy owner a new universal life policy. This
transaction is called an --CORRECT ANSWER--Replacement `
Page 3 of 45
, which of these is an element of a Variable life policy? --CORRECT
ANSWER--A fixed level premium
what is being delivered during a policy delivery? --CORRECT
ANSWER--Insurance contract to the proposed insured
The consideration clause of an insurance contract includes --
CORRECT ANSWER--The schedule and amount of premium
payments
Viatical settlement death benefit proceeds are payable to the --
CORRECT ANSWER--Current beneficiary
A policyowner is able t o choose the frequency of premium payments
through what policy feature? --CORRECT ANSWER--Premium
mode
What is the basic function of an annuity? --CORRECT ANSWER--
The systematic liquidation of accumulated funds
Page 4 of 45
EXAM QUESTIONS WITH VERIFIED
SOLUTIONS
Which provision prevents an insurer from changing the terms of the
contract with the policyowner by referring to documents not found
within the policy itself --CORRECT ANSWER--Entire Contract
provision
An applicant's medical information received from the medical
information Bureau (MIB) may be furnished to the --CORRECT
ANSWER--Applicant's physician
Insurance policies are considered aleatory contracts because --
CORRECT ANSWER--Performance is conditioned upon a future
occurrence
In the event that an insured's premium is not paid by the due date, the
result will be? --CORRECT ANSWER--Coverage will continue for
not more than a maximum of 31 days, beyond which time the policy
will lapse
Page 1 of 45
,Which of the following life insurance policies combine term
insurance with an investment element? --CORRECT ANSWER--
Universal Life
Whose life is covered on a life insurance policy that contains a payor
benefit clause --CORRECT ANSWER--Child
Under a Graded Premium Whole Life policy, --CORRECT
ANSWER--The premium increases each year during the early years
of the contract and remains the same after that time.
Under a Renewable Term policy, --CORRECT ANSWER--The
renewal premium is calculated on the basis of the insured's attained
age
What type of life policy covers two people and pays upon the death of
the last insured? --CORRECT ANSWER--Survivorship
Variable life products require a producer to --CORRECT ANSWER--
Hold a life insurance license and a securities license
Page 2 of 45
,A(n) _____ rider may be used to include coverage for children under
their parents' life insurance policy. --CORRECT ANSWER--term
A term life rider offer the insured --CORRECT ANSWER--
Additional coverage
The Department of business regulations may revoke a producer's
license for each of the following offenses except --CORRECT
ANSWER--Violating an insurer's internal control requirements
The agreement in a life insurance contract that states a specific sum of
money will be paid to a designated person upon an insured's death is
called a --CORRECT ANSWER--insuring agreement
Which of the following statements is a producer Not permitted to say
--CORRECT ANSWER--If my company fails to pay a claim, the
guaranty Association will pay
A producer has influenced an existing policy owner to convert an
existing whole-life policy to reduced Paid-up insurance. The producer
then sells the policy owner a new universal life policy. This
transaction is called an --CORRECT ANSWER--Replacement `
Page 3 of 45
, which of these is an element of a Variable life policy? --CORRECT
ANSWER--A fixed level premium
what is being delivered during a policy delivery? --CORRECT
ANSWER--Insurance contract to the proposed insured
The consideration clause of an insurance contract includes --
CORRECT ANSWER--The schedule and amount of premium
payments
Viatical settlement death benefit proceeds are payable to the --
CORRECT ANSWER--Current beneficiary
A policyowner is able t o choose the frequency of premium payments
through what policy feature? --CORRECT ANSWER--Premium
mode
What is the basic function of an annuity? --CORRECT ANSWER--
The systematic liquidation of accumulated funds
Page 4 of 45
