Untrue statements on the application unintentionally made by insureds that, if discovered, would alter the
underwriting decision of the insurance company are called:
1. Common errors
2. Warranties
3. Fraudulent statements
4. Material Misrepresentation
4. Material Misrepresentation
Which nonforfeiture option provides coverage for the longest period of time?
1. Extended Term
2. Accumulated at interest
3. Paid up option
4. Reduced paid up option
4. Reduced paid up option
,The Ownership provision entitles the policy owner to do all of the following EXCEPT:
1. Assign the policy
2. Receive a policy loan
3. Designate a beneficiary
4. Set premium rates
4. Set premium rates
All of the following entities regulate variable life policies EXCEPT:
1. The SEC
2. The Insurance Department
3. Federal Government
4. The Guaranty Association
4. The Guaranty Association
,Which type of life insurance policy allows the policy owner to pay more or less than the planned premium?
1. Variable whole life
2. Universal Life
3. Straight whole life
4. Decreasing Term
2. Universal Life
An insured and his wife are both involved in a head on collision. The husband dies instantly, and the wife dies
15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life
insurance policy had what provision
1. Second to Die
2. Survivor Life
3. Accidental Death
4. Common Disaster
4. Common Disaster
, Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of
premium?
1. Reinstatement
2. Extended Term
3. Reduced Paid up Option
4. Automatice Premium loan
4. Automatice Premium loan
The policy owner pays for her life insurance annually. Until now, she has collected a non taxable dividend
check each year. She has decided that she would rather use the dividends to help pay for her next premium.
What option would allow her to do this?
A. Paid up addition
2. Reduction of premium
3. Accumulation of interest
4. Cash option
Reduction of Premium
underwriting decision of the insurance company are called:
1. Common errors
2. Warranties
3. Fraudulent statements
4. Material Misrepresentation
4. Material Misrepresentation
Which nonforfeiture option provides coverage for the longest period of time?
1. Extended Term
2. Accumulated at interest
3. Paid up option
4. Reduced paid up option
4. Reduced paid up option
,The Ownership provision entitles the policy owner to do all of the following EXCEPT:
1. Assign the policy
2. Receive a policy loan
3. Designate a beneficiary
4. Set premium rates
4. Set premium rates
All of the following entities regulate variable life policies EXCEPT:
1. The SEC
2. The Insurance Department
3. Federal Government
4. The Guaranty Association
4. The Guaranty Association
,Which type of life insurance policy allows the policy owner to pay more or less than the planned premium?
1. Variable whole life
2. Universal Life
3. Straight whole life
4. Decreasing Term
2. Universal Life
An insured and his wife are both involved in a head on collision. The husband dies instantly, and the wife dies
15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life
insurance policy had what provision
1. Second to Die
2. Survivor Life
3. Accidental Death
4. Common Disaster
4. Common Disaster
, Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of
premium?
1. Reinstatement
2. Extended Term
3. Reduced Paid up Option
4. Automatice Premium loan
4. Automatice Premium loan
The policy owner pays for her life insurance annually. Until now, she has collected a non taxable dividend
check each year. She has decided that she would rather use the dividends to help pay for her next premium.
What option would allow her to do this?
A. Paid up addition
2. Reduction of premium
3. Accumulation of interest
4. Cash option
Reduction of Premium
