Idaho Life Insurance Practice Exam with answers

Idaho Life Insurance Practice Exam with
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answers

Untrue statements on the application unintentionally
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made by insureds that, if discovered, would alter the
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underwriting decision of the insurance company are |\ |\ |\ |\ |\ |\ |\



called:
1. Common errors
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2. Warranties
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3. Fraudulent statements
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4. Material Misrepresentation
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4. Material Misrepresentation
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Which nonforfeiture option provides coverage for the
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longest period of time?
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1. Extended Term
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2. Accumulated at interest
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3. Paid up option
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4. Reduced paid up option
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4. Reduced paid up option
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,The Ownership provision entitles the policy owner to do
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all of the following EXCEPT:
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1. Assign the policy
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2. Receive a policy loan
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3. Designate a beneficiary
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4. Set premium rates
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4. Set premium rates
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All of the following entities regulate variable life policies
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EXCEPT:
1. The SEC
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2. The Insurance Department
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3. Federal Government
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4. The Guaranty Association
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4. The Guaranty Association
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Which type of life insurance policy allows the policy owner
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to pay more or less than the planned premium?
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1. Variable whole life
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2. Universal Life
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,3. Straight whole life
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4. Decreasing Term
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2. Universal Life
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An insured and his wife are both involved in a head on
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collision. The husband dies instantly, and the wife dies 15
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days later. The company pays the death benefit to the
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estate of the insured. This indicates that the life insurance
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policy had what provision
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1. Second to Die
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2. Survivor Life
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3. Accidental Death
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4. Common Disaster
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4. Common Disaster
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Which of the following protects the insured from an
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unintentional policy lapse due to a nonpayment of |\ |\ |\ |\ |\ |\ |\ |\



premium?
1. Reinstatement
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2. Extended Term
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3. Reduced Paid up Option
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4. Automatice Premium loan
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, 4. Automatice Premium loan
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The policy owner pays for her life insurance annually.
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Until now, she has collected a non taxable dividend check
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each year. She has decided that she would rather use the
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dividends to help pay for her next premium. What option
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would allow her to do this? |\ |\ |\ |\ |\




A. Paid up addition
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2. Reduction of premium
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3. Accumulation of interest
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4. Cash option
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Reduction of Premium |\ |\




If a life policy allows the policy owner to make periodic
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additions to the face amount of standard rates, without
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proving insurability, the policy includes a: |\ |\ |\ |\ |\




1. Paid up additions option
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2. Cost of living provision
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3. Guaranteed insurability Rider
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4. non forfeiture Option
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3. Guaranteed insurability Rider
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