AD Banker Chapter 6 Exam Questions With
Correct Answers
Which |of |the |following |is |a |requirement |in |order |for |a |third-party |ownership |policy |to |be |
issued |by |a |life |insurance |company?
a. |The |policy |must |be |for |no |more |than |$100,000
b. |A |proper |beneficiary |must |be |named
c. |An |annual |premiums |must |be |paid |with |the |application
d. |Insurable |interest |must |exist |between |the |policyowner |and |the |insured |- |CORRECT |
ANSWER✔✔-d. |Insurable |interest |must |exist |between |the |policyowner |and |the |insured
Which |of |the |following |is |a |major |risk |to |an |employee |covered |under |an |employer's |group |life |
insurance |plan?
a. |The |sponsor |can |elect |to |discontinue |the |plan
b. |Open |enrollment |is |offered |on |an |annual |basis
c. |The |sponsor |is |issued |master |policy
d. |Employers |pick |up |all |or |part |of |the |cost |of |the |insurance |- |CORRECT |ANSWER✔✔-a. |The |
sponsor |can |elect |to |discontinue |the |plan
The |window |or |widower's |Social |Security |blackout |period |last |until |a |surviving, |non-remarried |
spouse |reaches |age |_______.
a. |65
b. |60
c. |62
d. |50 |- |CORRECT |ANSWER✔✔-b. |60
, The |Social |Security |Death |Benefit |is |payable |to |the |__________.
a. |The |named |beneficiary
b. |The |estate |of |the |insured
c. |The |surviving |spouse
d. |The |next |of |kin |- |CORRECT |ANSWER✔✔-c. |The |surviving |spouse
A |Social |Security |retirement |benefit |recipient |will |receive |the |greatest |benefit |startingat |which |
of |the |following |ages?
a. |65
b. |60 |
c. |63 |1/2
d. |62 |- |CORRECT |ANSWER✔✔-a. |65
The |_________________ |allows |an |insurer |to |pay |death |benefits |anyone |it |deems |to |be |
entitled |in |the |absence |of |a |designated |beneficiary.
a. |Facility |of |Payment |Clause
b. |Next |of |Kin |Clause
c. |Policy's |Settlement |Option
d. |Creditor |Collection |Clause |- |CORRECT |ANSWER✔✔-a. |Facility |of |Payment |Clause
Credit |Life |insurance |is |usually |what |type?
a. |Increasing |Term
b. |Level |Term
c. |Decreasing |Term
d. |Variable |Term |- |CORRECT |ANSWER✔✔-c. |Decreasing |Term
Correct Answers
Which |of |the |following |is |a |requirement |in |order |for |a |third-party |ownership |policy |to |be |
issued |by |a |life |insurance |company?
a. |The |policy |must |be |for |no |more |than |$100,000
b. |A |proper |beneficiary |must |be |named
c. |An |annual |premiums |must |be |paid |with |the |application
d. |Insurable |interest |must |exist |between |the |policyowner |and |the |insured |- |CORRECT |
ANSWER✔✔-d. |Insurable |interest |must |exist |between |the |policyowner |and |the |insured
Which |of |the |following |is |a |major |risk |to |an |employee |covered |under |an |employer's |group |life |
insurance |plan?
a. |The |sponsor |can |elect |to |discontinue |the |plan
b. |Open |enrollment |is |offered |on |an |annual |basis
c. |The |sponsor |is |issued |master |policy
d. |Employers |pick |up |all |or |part |of |the |cost |of |the |insurance |- |CORRECT |ANSWER✔✔-a. |The |
sponsor |can |elect |to |discontinue |the |plan
The |window |or |widower's |Social |Security |blackout |period |last |until |a |surviving, |non-remarried |
spouse |reaches |age |_______.
a. |65
b. |60
c. |62
d. |50 |- |CORRECT |ANSWER✔✔-b. |60
, The |Social |Security |Death |Benefit |is |payable |to |the |__________.
a. |The |named |beneficiary
b. |The |estate |of |the |insured
c. |The |surviving |spouse
d. |The |next |of |kin |- |CORRECT |ANSWER✔✔-c. |The |surviving |spouse
A |Social |Security |retirement |benefit |recipient |will |receive |the |greatest |benefit |startingat |which |
of |the |following |ages?
a. |65
b. |60 |
c. |63 |1/2
d. |62 |- |CORRECT |ANSWER✔✔-a. |65
The |_________________ |allows |an |insurer |to |pay |death |benefits |anyone |it |deems |to |be |
entitled |in |the |absence |of |a |designated |beneficiary.
a. |Facility |of |Payment |Clause
b. |Next |of |Kin |Clause
c. |Policy's |Settlement |Option
d. |Creditor |Collection |Clause |- |CORRECT |ANSWER✔✔-a. |Facility |of |Payment |Clause
Credit |Life |insurance |is |usually |what |type?
a. |Increasing |Term
b. |Level |Term
c. |Decreasing |Term
d. |Variable |Term |- |CORRECT |ANSWER✔✔-c. |Decreasing |Term
