1. An annuity promises that, if the annuitant dies before receiving payments
equal to the correct value, the payments will be continued to a beneficiary
until an amount equal to the contract value has been paid. This type of
annuity is called
An installment Refund annuity
A Straight Life annuity
A Cash Refund annuity
A Joint Life annuity
Answer An installment Refund annuity
2. One becomes eligible for Social Security disability benefits after
having been disabled for
3 months
5 months
6 months
12 months
Answer 5 months
,3. A potential client, age 40, would like to purchase a Whole Life policy that
will accumulate cash value at a faster rate in the early years of the policy.
Which of these statements made by the producer would be correct?
Straight life accumulates faster than Limited-pay Life
20-Pay Life accumulates cash value faster than Straight Life
Cash value accumulation of both 20-Pay Life and Straight Life depend on the
insurer's financial rating
20-Pay Life and Straight Life accumulate cash value at the same rate
Answer 20-Pay Life accumulates cash value faster than Straight Life
4. Who makes the legally enforceable promises in a unilateral insurance
poli- cy?
Beneficiary
Insurance company
Insured
Applicant
Answer Insurance company
,5. The Consideration clause in a life insurance policy indicates that a policy-
owner's consideration consists of a completed application and
the initial premium
agreeing to a physical examination
, delivery of policy
disclosure of any medical conditions
Answer the initial premium
6. Which parts of a life insurance policy are guaranteed to be true?
Rating
Representation
Statement
Warranty
Answer Warranty
7. A comprehensive major medical health insurance policy contains an Eligi-
ble Expenses provision which identifies the types of health care services that
are covered. All of the following health care services are typically covered
EXCEPT for
hospital charges
physician fees
experimental and investigative services
equal to the correct value, the payments will be continued to a beneficiary
until an amount equal to the contract value has been paid. This type of
annuity is called
An installment Refund annuity
A Straight Life annuity
A Cash Refund annuity
A Joint Life annuity
Answer An installment Refund annuity
2. One becomes eligible for Social Security disability benefits after
having been disabled for
3 months
5 months
6 months
12 months
Answer 5 months
,3. A potential client, age 40, would like to purchase a Whole Life policy that
will accumulate cash value at a faster rate in the early years of the policy.
Which of these statements made by the producer would be correct?
Straight life accumulates faster than Limited-pay Life
20-Pay Life accumulates cash value faster than Straight Life
Cash value accumulation of both 20-Pay Life and Straight Life depend on the
insurer's financial rating
20-Pay Life and Straight Life accumulate cash value at the same rate
Answer 20-Pay Life accumulates cash value faster than Straight Life
4. Who makes the legally enforceable promises in a unilateral insurance
poli- cy?
Beneficiary
Insurance company
Insured
Applicant
Answer Insurance company
,5. The Consideration clause in a life insurance policy indicates that a policy-
owner's consideration consists of a completed application and
the initial premium
agreeing to a physical examination
, delivery of policy
disclosure of any medical conditions
Answer the initial premium
6. Which parts of a life insurance policy are guaranteed to be true?
Rating
Representation
Statement
Warranty
Answer Warranty
7. A comprehensive major medical health insurance policy contains an Eligi-
ble Expenses provision which identifies the types of health care services that
are covered. All of the following health care services are typically covered
EXCEPT for
hospital charges
physician fees
experimental and investigative services
