INSURANCE COMMISSION TRADITIONAL LIFE
MOCK EXAM 1 LATEST 2023 WITH COMPLETE
SOLUTION
Insurance protection will be limited to a specified period
Both endowment and term life policies provide that
To convey to the company the desire of the applicant to obtain insurance
Indicate which of the following is not a function of an application for life insurance policy.
Absolute assignee
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?
Discontinue premium payments
A policy where an irrevocable beneficiary has been designated, the insured, without the
beneficiary's permission, can
Fixed amount, fixed period, life income, interest on deposit
What are the basic settlement options?
Company discovers at any time that the policy owner was actually a minor at the time of
application
An insurance company generally has the right to rescind a life insurance policy if
To provide additional income to the government through license fees
Which of the following is the least important reason for requiring that insurance agents
be licensed?
The premiums cease and protection continues with a reduced amount of coverage
In the event that a policy owner elects the paid-up insurance option
Presents satisfactory evidence of insurability
The company will allow a policy change from a lower premium to a higher premium
provided the insured
Universal life
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
The insured has to die while disabled
Which of the following statements about "Waiver of Premium due to Disability" is false?
Relates to the insurability of the applicant
In most life insurance applications, the largest amount of information requested is data
which
Affect both cash and loan value of the policy
Paid-up additions
A supplemental term rider
The total life coverage of a permanent basic policy can be greatly increased through the
use of
Estimate future death rates among members of a given group
Life insurance companies make use of the laws of probability in order to
MOCK EXAM 1 LATEST 2023 WITH COMPLETE
SOLUTION
Insurance protection will be limited to a specified period
Both endowment and term life policies provide that
To convey to the company the desire of the applicant to obtain insurance
Indicate which of the following is not a function of an application for life insurance policy.
Absolute assignee
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?
Discontinue premium payments
A policy where an irrevocable beneficiary has been designated, the insured, without the
beneficiary's permission, can
Fixed amount, fixed period, life income, interest on deposit
What are the basic settlement options?
Company discovers at any time that the policy owner was actually a minor at the time of
application
An insurance company generally has the right to rescind a life insurance policy if
To provide additional income to the government through license fees
Which of the following is the least important reason for requiring that insurance agents
be licensed?
The premiums cease and protection continues with a reduced amount of coverage
In the event that a policy owner elects the paid-up insurance option
Presents satisfactory evidence of insurability
The company will allow a policy change from a lower premium to a higher premium
provided the insured
Universal life
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
The insured has to die while disabled
Which of the following statements about "Waiver of Premium due to Disability" is false?
Relates to the insurability of the applicant
In most life insurance applications, the largest amount of information requested is data
which
Affect both cash and loan value of the policy
Paid-up additions
A supplemental term rider
The total life coverage of a permanent basic policy can be greatly increased through the
use of
Estimate future death rates among members of a given group
Life insurance companies make use of the laws of probability in order to
