IIAP MOCK EXAM 2023 QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTION
A single premium policy means a policy
a. requiring only a single premium each year
b. under which only one premium payment is required
c. only available to single individuals
d. on which no more than one premium can be paid in advance
*Single premium policy only requires one premium payment(lump sum).
b
A fixed amount added to the premium of a premium given policy regardless of policy
size is known as
a. policy fee
b. policy reserve
c. policy values
d. extra premium
a
To be able to calculate the required premiums for a given policy, the agent must know
the applicant's
a. age
b. choice of plan
c. face amount desired
d. all of the above
d
To calculate premiums for the other modes of premium payment, the annual premium is
a. divided by the desired number of premium payments
b. divided by a conversion factor for the mode of payment desired
c. multiplied by a conversion factor for the mode of payment desired
d. multiplied by a constant conversion factor
c
A father enters into a life insurance contract on behalf of his child. In this case, the
father is the
a. Insured
b. Beneficiary
c. insurer
d. applicant-owner
d
The convertible feature of a term insurance policy provides that the policy may be
,a. changed to a permanent insurance policy without evidence of insurability
b. changed to another life
c. cashed for a guaranteed sum
d. changed to permanent insurance with evidence of insurability
a
When explaining dividends, the following information must be supplied
a. that they are not guaranteed
b. the dividends paid up in the previous years
c. the anticipated dividends
d. the relation to the cost of the policy
a
An insurance plan which offers protection and saving is called
a. temporary plan
b. permanent plan
c. participating plan
d. non-participating plan
b
A man with moderate means can have maximum protection possible through
a. 20 yr. endowment
b. Limited pay life
c. Term insurance
d. Whole life insurance
c
Mr. Juan Valdez wants a policy which will entitle him to receive dividends yearly. What
will you recommend to Mr. Valdez?
a. participating plans
b. non-participating plans
c. term insurance
d. none of the above
a
Which of the following can give the longest protection?
a. 20-year endowment
b. Endowment at 65
c. Ordinary life
d. 20-year term
c
An individual at age 35 purchases a policy under which he will in 20 years receive the
face amount of the policy himself, if he is still alive at that date. This policy is obviously a
a. 20-year endowment
b. 20-pay life
, c. 20-year term
d. none of the above
*This describes a 20-year endowment plan where the policyowner can get the face
amount by the end of 20 years if he outlives the plan.
a
In a 20 life policy,
a. protection is until age 100, payment of premiums is for 20 years
b. protection is until age 100, payment of premiums until age 100
c. protection is for 20 years, payment of premium is for 20 years
d. protection is for 20 years, payment of premiums until age 100
a
A participating plan entitles the policyowner to receive a return of excess premiums.
Such is termed as:
a. Endowments
b. dividends
c. cash values
d. cash surrender value
b
Mrs. Rose Cortez owns a policy which does not provide for the buildup of cash values
and whose premiums remain level. Mrs. Cortez owns:
a. ordinary life
b. limited pay life
c. decreasing term
d. level term
d
Two attractive features of a term insurance are:
a. convertibility and cash values
b. cash values and dividends
c. protection and dividends
d. convertibility and renewability
d
A term insurance which allows the policyowners to convert it to a permanent insurance
within a specified period without evidence of insurability contains ________ feature:
a. convertibility
b. renewability
c. dividend option
d. both a and b
a
A term policy only offers
WITH COMPLETE SOLUTION
A single premium policy means a policy
a. requiring only a single premium each year
b. under which only one premium payment is required
c. only available to single individuals
d. on which no more than one premium can be paid in advance
*Single premium policy only requires one premium payment(lump sum).
b
A fixed amount added to the premium of a premium given policy regardless of policy
size is known as
a. policy fee
b. policy reserve
c. policy values
d. extra premium
a
To be able to calculate the required premiums for a given policy, the agent must know
the applicant's
a. age
b. choice of plan
c. face amount desired
d. all of the above
d
To calculate premiums for the other modes of premium payment, the annual premium is
a. divided by the desired number of premium payments
b. divided by a conversion factor for the mode of payment desired
c. multiplied by a conversion factor for the mode of payment desired
d. multiplied by a constant conversion factor
c
A father enters into a life insurance contract on behalf of his child. In this case, the
father is the
a. Insured
b. Beneficiary
c. insurer
d. applicant-owner
d
The convertible feature of a term insurance policy provides that the policy may be
,a. changed to a permanent insurance policy without evidence of insurability
b. changed to another life
c. cashed for a guaranteed sum
d. changed to permanent insurance with evidence of insurability
a
When explaining dividends, the following information must be supplied
a. that they are not guaranteed
b. the dividends paid up in the previous years
c. the anticipated dividends
d. the relation to the cost of the policy
a
An insurance plan which offers protection and saving is called
a. temporary plan
b. permanent plan
c. participating plan
d. non-participating plan
b
A man with moderate means can have maximum protection possible through
a. 20 yr. endowment
b. Limited pay life
c. Term insurance
d. Whole life insurance
c
Mr. Juan Valdez wants a policy which will entitle him to receive dividends yearly. What
will you recommend to Mr. Valdez?
a. participating plans
b. non-participating plans
c. term insurance
d. none of the above
a
Which of the following can give the longest protection?
a. 20-year endowment
b. Endowment at 65
c. Ordinary life
d. 20-year term
c
An individual at age 35 purchases a policy under which he will in 20 years receive the
face amount of the policy himself, if he is still alive at that date. This policy is obviously a
a. 20-year endowment
b. 20-pay life
, c. 20-year term
d. none of the above
*This describes a 20-year endowment plan where the policyowner can get the face
amount by the end of 20 years if he outlives the plan.
a
In a 20 life policy,
a. protection is until age 100, payment of premiums is for 20 years
b. protection is until age 100, payment of premiums until age 100
c. protection is for 20 years, payment of premium is for 20 years
d. protection is for 20 years, payment of premiums until age 100
a
A participating plan entitles the policyowner to receive a return of excess premiums.
Such is termed as:
a. Endowments
b. dividends
c. cash values
d. cash surrender value
b
Mrs. Rose Cortez owns a policy which does not provide for the buildup of cash values
and whose premiums remain level. Mrs. Cortez owns:
a. ordinary life
b. limited pay life
c. decreasing term
d. level term
d
Two attractive features of a term insurance are:
a. convertibility and cash values
b. cash values and dividends
c. protection and dividends
d. convertibility and renewability
d
A term insurance which allows the policyowners to convert it to a permanent insurance
within a specified period without evidence of insurability contains ________ feature:
a. convertibility
b. renewability
c. dividend option
d. both a and b
a
A term policy only offers
