AD Banker Chapter 4 Exam Questions With
Correct Answers
Mona |let |her |permanent |policy |lapse. |She |discovered |there |was |a |$2,498 |in |cash |value |
remaining |in |the |policy |and |decided |to |pay |off |some |of |her |credit |card |debt. |She |exercised |
which |Nonforfeiture |Option?
a. |Fixed |Amount |
b. |Reduced |Paid-Up
c. |Cash |Surrender
d. |Extended |Term |- |CORRECT |ANSWER✔✔-c. |Cash |Surrender
All |of |the |following |are |Dividend |Options, |except:
a. |Cash
b. |Reduced |paid-up
c. |One-year |term
d. |Paid-up |additions |- |CORRECT |ANSWER✔✔-b. |Reduced |paid-up
When |does |a |change |in |beneficiary |take |effect?
a. |The |date |the |policyowner |receives |the |change |of |beneficiary |form |from |the |insurer
b. |The |date |the |policyowner |signs |the |request |to |change |the |beneficiary
c. |The |date |the |home |office |of |the |insurer |receives |the |request |for |change |beneficiary |change
d. |The |date |the |change |of |beneficiary |form |is |mailed |by |the |policyowner |to |the |insurer |- |
CORRECT |ANSWER✔✔-b. |The |date |the |policyowner |signs |the |request |to |change |the |
beneficiary
, Cranston |wants |a |Settlement |Option |for |his |beneficiary |that |will |guarantee |the |beneficiary |an |
income |as |long |as |the |beneficiary |lives. |Cranston |should |choose:
a. |Fixed |Period
b. |Fixed |Amount
c. |Life |Income |Only
d. |Interest |- |CORRECT |ANSWER✔✔-c. |Life |Income |Only
Burt |named |Liz |as |his |beneficiary; |however, |he |did |not |choose |Settlement |Option. |At |the |time |
of |his |death, |who |determines |the |option |to |be |used |to |receive |the |benefit?
a. |Liz |the |beneficiary |determines |which |option |she |would |like |to |have
b. |Burt's |estate, |since |no |Settlement |Option |was |chosen
c. |Lump |sum |is |the |automatic |option |when |no |option |was |preselected |prior |to |death |of |the |
insured
d. |The |insurer |decided |when |the |election |is |not |made |by |the |policyowner |prior |to |death |- |
CORRECT |ANSWER✔✔-a. |Liz |the |beneficiary |determines |which |option |she |would |like |to |have
Which |Settlement |Option |pays |for |a |specified |period, |regardless |of |who |may |receive |the |
payments?
a. |Life |Income |with |Period |Certain
b. |Fixed |period
c. |Fixed |amount
d. |Paid-up |Additions |- |CORRECT |ANSWER✔✔-b. |Fixed |period
What |are |the |two |types |of |life |insurance |assignments?
a. |Complete |and |partial
b. |Entire |amount |and |percentage |amount
c. |Revocable |and |irrevocable
d. |Absolute |and |collateral |- |CORRECT |ANSWER✔✔-d. |Absolute |and |collateral
Correct Answers
Mona |let |her |permanent |policy |lapse. |She |discovered |there |was |a |$2,498 |in |cash |value |
remaining |in |the |policy |and |decided |to |pay |off |some |of |her |credit |card |debt. |She |exercised |
which |Nonforfeiture |Option?
a. |Fixed |Amount |
b. |Reduced |Paid-Up
c. |Cash |Surrender
d. |Extended |Term |- |CORRECT |ANSWER✔✔-c. |Cash |Surrender
All |of |the |following |are |Dividend |Options, |except:
a. |Cash
b. |Reduced |paid-up
c. |One-year |term
d. |Paid-up |additions |- |CORRECT |ANSWER✔✔-b. |Reduced |paid-up
When |does |a |change |in |beneficiary |take |effect?
a. |The |date |the |policyowner |receives |the |change |of |beneficiary |form |from |the |insurer
b. |The |date |the |policyowner |signs |the |request |to |change |the |beneficiary
c. |The |date |the |home |office |of |the |insurer |receives |the |request |for |change |beneficiary |change
d. |The |date |the |change |of |beneficiary |form |is |mailed |by |the |policyowner |to |the |insurer |- |
CORRECT |ANSWER✔✔-b. |The |date |the |policyowner |signs |the |request |to |change |the |
beneficiary
, Cranston |wants |a |Settlement |Option |for |his |beneficiary |that |will |guarantee |the |beneficiary |an |
income |as |long |as |the |beneficiary |lives. |Cranston |should |choose:
a. |Fixed |Period
b. |Fixed |Amount
c. |Life |Income |Only
d. |Interest |- |CORRECT |ANSWER✔✔-c. |Life |Income |Only
Burt |named |Liz |as |his |beneficiary; |however, |he |did |not |choose |Settlement |Option. |At |the |time |
of |his |death, |who |determines |the |option |to |be |used |to |receive |the |benefit?
a. |Liz |the |beneficiary |determines |which |option |she |would |like |to |have
b. |Burt's |estate, |since |no |Settlement |Option |was |chosen
c. |Lump |sum |is |the |automatic |option |when |no |option |was |preselected |prior |to |death |of |the |
insured
d. |The |insurer |decided |when |the |election |is |not |made |by |the |policyowner |prior |to |death |- |
CORRECT |ANSWER✔✔-a. |Liz |the |beneficiary |determines |which |option |she |would |like |to |have
Which |Settlement |Option |pays |for |a |specified |period, |regardless |of |who |may |receive |the |
payments?
a. |Life |Income |with |Period |Certain
b. |Fixed |period
c. |Fixed |amount
d. |Paid-up |Additions |- |CORRECT |ANSWER✔✔-b. |Fixed |period
What |are |the |two |types |of |life |insurance |assignments?
a. |Complete |and |partial
b. |Entire |amount |and |percentage |amount
c. |Revocable |and |irrevocable
d. |Absolute |and |collateral |- |CORRECT |ANSWER✔✔-d. |Absolute |and |collateral
