AD Banker Chapter 3 Exam Questions With
Correct Answers
An |insured |dies |within |the |time |limit |of |an |Increasing |Term |Rider |and |the |beneficiary |receives |
the |face |amount |plus |the |value |of |all |paid |premiums. |Which |rider |is |attached |to |the |policy? |
a. |Waiver |of |Premium
b. |Return |of |Cash |Value
c. |Return |of |Premium
d. |Term |to |age |100 |- |CORRECT |ANSWER✔✔-c. |Return |of |Premium
Jacob |owns |a |policy |that |pays |a |death |benefit |only |if |he |dies |within |the |20-year |policy |period. |
If |Jacob |dies |anytime |that |the |policy |is |in |force, |his |beneficiary |will |receive |$100,000. |The |
premium |that |Jacob |pays |for |this |policy |will |be |the |same |through |the |20-year |policy |period. |
Jacob |owns:
a. |A |Re-Entry |Term |policy
b. |A |Level |Term |policy
c. |A |Decreasing |Term |policy
d. |An |Increasing |Term |policy |- |CORRECT |ANSWER✔✔-b. |A |Level |Term |policy
If |an |insured |has |a |Life |Paid-Up |at |75 |Policy |( |a |limited-pay |life |paid-up |at |age |75), |what |would
|the |beneficiary |receive |if |the |insured |died |at |age |68?
a. |The |face |amount
b. |The |cash |value
c. |The |face |amount |minus |the |cash |value
d. |The |face |amount |plus |the |cash |value |- |CORRECT |ANSWER✔✔-a. |The |face |amount
All |of |the |following |are |true |of |the |Universal |Life |policy, |except:
, a. |Adjustments |to |the |face |amount |may |be |requested |by |the |policyowner |to |reflect |changes |in
|need
b. |It |allows |the |owner |to |make |additional |contributions |that |increase |the |cash |value |or |skip |
some |premiums |if |the |owner |desires |to |do |so
c. |Any |borrowing |or |partial |withdrawal |from |the |cash |value |account |terminates |the |policy
d. |The |cash |value |account |earns |interest |at |the |current |rate |with |a |guaranteed |minimum |rate |
established |- |CORRECT |ANSWER✔✔-c. |Any |borrowing |or |partial |withdrawal |from |the |cash |
value |account |terminates |the |policy
If |an |insured |is |concerned |about |being |unable |ot |pay |the |premiums |on |his |or |her |whole |life |
policy |in |the |event |of |a |total |disability, |which |of |the |following |riders |should |be |added |to |the |
policy?
a. |Waiver |of |Cost |of |Insurance
b. |Payor |Benefit
c. |Waiver |of |Premium
d. |Disability |Income |Benefit |- |CORRECT |ANSWER✔✔-c. |Waiver |of |Premium
The |_____________ |is |the |amount |payable |to |the |beneficiary |upon |death |of |the |insured |
named |in |a |life |insurance |policy.
a. |Loan |value
b. |Cash |value
c. |Premium |refund
d. |Face |amount |- |CORRECT |ANSWER✔✔-d. |Face |amount
Which |of |the |following |Whole |Life |insurance |policies |has |the |lowest |annual |premium |payment
|per |$1,000 |of |coverage |for |a |35-year-old, |all |other |factors |being |equal?
a. |Limited |Pay |Ordinary |Whole |to |age |85
b. |30-Pay |Ordinary |Life
c. |20-Pay |Ordinary |Life
Correct Answers
An |insured |dies |within |the |time |limit |of |an |Increasing |Term |Rider |and |the |beneficiary |receives |
the |face |amount |plus |the |value |of |all |paid |premiums. |Which |rider |is |attached |to |the |policy? |
a. |Waiver |of |Premium
b. |Return |of |Cash |Value
c. |Return |of |Premium
d. |Term |to |age |100 |- |CORRECT |ANSWER✔✔-c. |Return |of |Premium
Jacob |owns |a |policy |that |pays |a |death |benefit |only |if |he |dies |within |the |20-year |policy |period. |
If |Jacob |dies |anytime |that |the |policy |is |in |force, |his |beneficiary |will |receive |$100,000. |The |
premium |that |Jacob |pays |for |this |policy |will |be |the |same |through |the |20-year |policy |period. |
Jacob |owns:
a. |A |Re-Entry |Term |policy
b. |A |Level |Term |policy
c. |A |Decreasing |Term |policy
d. |An |Increasing |Term |policy |- |CORRECT |ANSWER✔✔-b. |A |Level |Term |policy
If |an |insured |has |a |Life |Paid-Up |at |75 |Policy |( |a |limited-pay |life |paid-up |at |age |75), |what |would
|the |beneficiary |receive |if |the |insured |died |at |age |68?
a. |The |face |amount
b. |The |cash |value
c. |The |face |amount |minus |the |cash |value
d. |The |face |amount |plus |the |cash |value |- |CORRECT |ANSWER✔✔-a. |The |face |amount
All |of |the |following |are |true |of |the |Universal |Life |policy, |except:
, a. |Adjustments |to |the |face |amount |may |be |requested |by |the |policyowner |to |reflect |changes |in
|need
b. |It |allows |the |owner |to |make |additional |contributions |that |increase |the |cash |value |or |skip |
some |premiums |if |the |owner |desires |to |do |so
c. |Any |borrowing |or |partial |withdrawal |from |the |cash |value |account |terminates |the |policy
d. |The |cash |value |account |earns |interest |at |the |current |rate |with |a |guaranteed |minimum |rate |
established |- |CORRECT |ANSWER✔✔-c. |Any |borrowing |or |partial |withdrawal |from |the |cash |
value |account |terminates |the |policy
If |an |insured |is |concerned |about |being |unable |ot |pay |the |premiums |on |his |or |her |whole |life |
policy |in |the |event |of |a |total |disability, |which |of |the |following |riders |should |be |added |to |the |
policy?
a. |Waiver |of |Cost |of |Insurance
b. |Payor |Benefit
c. |Waiver |of |Premium
d. |Disability |Income |Benefit |- |CORRECT |ANSWER✔✔-c. |Waiver |of |Premium
The |_____________ |is |the |amount |payable |to |the |beneficiary |upon |death |of |the |insured |
named |in |a |life |insurance |policy.
a. |Loan |value
b. |Cash |value
c. |Premium |refund
d. |Face |amount |- |CORRECT |ANSWER✔✔-d. |Face |amount
Which |of |the |following |Whole |Life |insurance |policies |has |the |lowest |annual |premium |payment
|per |$1,000 |of |coverage |for |a |35-year-old, |all |other |factors |being |equal?
a. |Limited |Pay |Ordinary |Whole |to |age |85
b. |30-Pay |Ordinary |Life
c. |20-Pay |Ordinary |Life
