INSURANCE COMMISSION TRADITIONAL LIFE
MOCK EXAM 1 2023 WITH COMPLETE SOLUTION
Both endowment and term life policies provide that
a. No cash value is available to the policy owner during the term of the policy
b. Renewal and conversion privileges are available
c. A benefit will be paid at the end of the period of coverage if the person is then alive
d. Insurance protection will be limited to a specified period
d. Insurance protection will be limited to a specified period
Indicate which of the following is not a function of an application for life insurance policy.
a. To give details pertaining to non-forfeiture options
b. To furnish information on which the contract of life insurance may be written
c. To furnish initial information as to insurability
d. To convey to the company the desire of the applicant to obtain insurance
d. To convey to the company the desire of the applicant to obtain insurance
A father has his present life insurance payable to his estate and because he has now
retired he wants to pass the policy on to his son who will assume the premium
payments. Which of the following will he have to appoint his son to achieve his desire
and protect the son from Estate Tax Liability?
a. Irrevocable primary beneficiary
b. Absolute assignee
c. Irrevocable secondary beneficiary
d. Revocable primary beneficiary
b. Absolute assignee
A policy where an irrevocable beneficiary has been designated, the insured, without the
beneficiary's permission, can
a. Avail of a non-forfeiture option
b. Discontinue premium payments
c. Borrow minimal cash loan
d. Alter the dividend option now in effect
b. Discontinue premium payments
What are the basic settlement options?
a. Policy loan, guaranteed insurability
b. Cash surrender value, automatic premium loan
c. Fixed amount, fixed period, life income, interest on deposit
d. Double indemnity, total and permanent disability waiver
c. Fixed amount, fixed period, life income, interest on deposit
6. An insurance company generally has the right to rescind a life insurance policy if
a. Company discovers at any time that the policy owner was actually a minor at the time
of application
b. Insured person intentionally kills himself during the suicide exclusion period specified
in the policy
c. Insured person is killed in military action during the contestable period of the policy
d. Company discovers during the contestable period that the application contains a
material statement.
, a. Company discovers at any time that the policy owner was actually a minor at the time
of application
Which of the following is the least important reason for requiring that insurance agents
be licensed?
a. To establish and maintain high professional and ethical standards
b. To protect the public
c. To give the government adequate control over the conduct of agents
d. To provide additional income to the government through license fees
d. To provide additional income to the government through license fees
In the event that a policy owner elects the paid-up insurance option
a. The premiums stop and the policy continues for the full face amount until age 65
b. The insurance continues at a reduced amount and with a reduced premium
c. The policywill automatically terminate
d. The premiums cease and protection continues with a reduced amount of coverage
d. The premiums cease and protection continues with a reduced amount of coverage
The company will allow a policy change from a lower premium to a higher premium
provided the insured
a. Buys a newplan altogether
b. Presents satisfactory evidence of insurability
c. Momentarily assigns the policy to the company
d. Obtains written consent from his or her spouse
b. Presents satisfactory evidence of insurability
A policy which permits the policyholder to vary the level of premiums, the sum insured
and has its cash values dependent upon the investment performance and the level of
premium paid is known as policy
a. Participating whole life policy
b. Participating endowment
c. Universal life
d. None of the above
c. Universal life
Which of the following statements about "Waiver of Premium due to Disability" is false?
a. Disability must occur before a stated date
b. The insured has to die while disabled
c. There is a waiting period
d. It has to be attached to a life insurance policy
b. The insured has to die while disabled
In most life insurance applications, the largest amount of information requested is data
which
a. Identifies the applicant
b. Describes the type of insurance applied for
c. Relates to the insurability of the applicant
d. Describes the desired benefits and mode of payment
c. Relates to the insurability of the applicant
Paid-up additions
a. Affect both cash and loan value of the policy
MOCK EXAM 1 2023 WITH COMPLETE SOLUTION
Both endowment and term life policies provide that
a. No cash value is available to the policy owner during the term of the policy
b. Renewal and conversion privileges are available
c. A benefit will be paid at the end of the period of coverage if the person is then alive
d. Insurance protection will be limited to a specified period
d. Insurance protection will be limited to a specified period
Indicate which of the following is not a function of an application for life insurance policy.
a. To give details pertaining to non-forfeiture options
b. To furnish information on which the contract of life insurance may be written
c. To furnish initial information as to insurability
d. To convey to the company the desire of the applicant to obtain insurance
d. To convey to the company the desire of the applicant to obtain insurance
A father has his present life insurance payable to his estate and because he has now
retired he wants to pass the policy on to his son who will assume the premium
payments. Which of the following will he have to appoint his son to achieve his desire
and protect the son from Estate Tax Liability?
a. Irrevocable primary beneficiary
b. Absolute assignee
c. Irrevocable secondary beneficiary
d. Revocable primary beneficiary
b. Absolute assignee
A policy where an irrevocable beneficiary has been designated, the insured, without the
beneficiary's permission, can
a. Avail of a non-forfeiture option
b. Discontinue premium payments
c. Borrow minimal cash loan
d. Alter the dividend option now in effect
b. Discontinue premium payments
What are the basic settlement options?
a. Policy loan, guaranteed insurability
b. Cash surrender value, automatic premium loan
c. Fixed amount, fixed period, life income, interest on deposit
d. Double indemnity, total and permanent disability waiver
c. Fixed amount, fixed period, life income, interest on deposit
6. An insurance company generally has the right to rescind a life insurance policy if
a. Company discovers at any time that the policy owner was actually a minor at the time
of application
b. Insured person intentionally kills himself during the suicide exclusion period specified
in the policy
c. Insured person is killed in military action during the contestable period of the policy
d. Company discovers during the contestable period that the application contains a
material statement.
, a. Company discovers at any time that the policy owner was actually a minor at the time
of application
Which of the following is the least important reason for requiring that insurance agents
be licensed?
a. To establish and maintain high professional and ethical standards
b. To protect the public
c. To give the government adequate control over the conduct of agents
d. To provide additional income to the government through license fees
d. To provide additional income to the government through license fees
In the event that a policy owner elects the paid-up insurance option
a. The premiums stop and the policy continues for the full face amount until age 65
b. The insurance continues at a reduced amount and with a reduced premium
c. The policywill automatically terminate
d. The premiums cease and protection continues with a reduced amount of coverage
d. The premiums cease and protection continues with a reduced amount of coverage
The company will allow a policy change from a lower premium to a higher premium
provided the insured
a. Buys a newplan altogether
b. Presents satisfactory evidence of insurability
c. Momentarily assigns the policy to the company
d. Obtains written consent from his or her spouse
b. Presents satisfactory evidence of insurability
A policy which permits the policyholder to vary the level of premiums, the sum insured
and has its cash values dependent upon the investment performance and the level of
premium paid is known as policy
a. Participating whole life policy
b. Participating endowment
c. Universal life
d. None of the above
c. Universal life
Which of the following statements about "Waiver of Premium due to Disability" is false?
a. Disability must occur before a stated date
b. The insured has to die while disabled
c. There is a waiting period
d. It has to be attached to a life insurance policy
b. The insured has to die while disabled
In most life insurance applications, the largest amount of information requested is data
which
a. Identifies the applicant
b. Describes the type of insurance applied for
c. Relates to the insurability of the applicant
d. Describes the desired benefits and mode of payment
c. Relates to the insurability of the applicant
Paid-up additions
a. Affect both cash and loan value of the policy
