Answers to
KEY IC MOCK
EXAM SET B
Exam
(elaborations)
1. Life insurance contributes directly to the welfare and progress of the country by
a. accumulating capital for investment in commerce and industry
AK_IC - MOCK EXAM SET B
, b. partially relieving the community of the care of dependents
c. encouraging provisions for the future
d. all of the above
2. One supplementary benefit offered is a payor’s benefit which is intended to
a. provide for the return of premiums to an adult payor in the event that a minor
insured dies
b. provide a waiver of premium benefit in the event of death or disability of the person
paying the premium
c. allow the insurance company to pay the policy’s proceeds to the person who
seems equitably entitled to the proceeds
d. assure that the adult payor will retain a vested interest in the policy when
the insured reaches the age of majority
3. A whole life policy with an initial premium rate that applies to the first 5 years of
the policy and a higher premium rate that applies to the remainder of the
premium-payment period is known as
a. an extended life policy c. an experience-premium policy
b. a modified life policy d. a guaranteed renewable policy
4. A risk is considered substandard based on any or all of the following criteria
a. death, occupation and moral character
b. occupation, moral character and family health history
c. income, educational attainment and occupation
d. death, income and educational background
5. The only instance when a life insurance contract is treated primarily as an indemnity
agreement is when a
a. person insures the life of a friend
b. creditor insures the life of his debtor to protect himself
c. person insures the life of his or her spouse to protect against the loss of
income earned by the spouse
d. person in a partnership insures the life of his partner to protect the firm
against loss due to the death of that partner
6. Which of the following describes the convertible feature of a term insurance policy?
a. It may be changed to another term insurance policy without evidence of
insurability
b. It may be changed for a guaranteed sum
c. It may be changed to another whole life policy
d. It may be changed to a permanent insurance without evidence of insurability
AK_IC - MOCK EXAM SET B
KEY IC MOCK
EXAM SET B
Exam
(elaborations)
1. Life insurance contributes directly to the welfare and progress of the country by
a. accumulating capital for investment in commerce and industry
AK_IC - MOCK EXAM SET B
, b. partially relieving the community of the care of dependents
c. encouraging provisions for the future
d. all of the above
2. One supplementary benefit offered is a payor’s benefit which is intended to
a. provide for the return of premiums to an adult payor in the event that a minor
insured dies
b. provide a waiver of premium benefit in the event of death or disability of the person
paying the premium
c. allow the insurance company to pay the policy’s proceeds to the person who
seems equitably entitled to the proceeds
d. assure that the adult payor will retain a vested interest in the policy when
the insured reaches the age of majority
3. A whole life policy with an initial premium rate that applies to the first 5 years of
the policy and a higher premium rate that applies to the remainder of the
premium-payment period is known as
a. an extended life policy c. an experience-premium policy
b. a modified life policy d. a guaranteed renewable policy
4. A risk is considered substandard based on any or all of the following criteria
a. death, occupation and moral character
b. occupation, moral character and family health history
c. income, educational attainment and occupation
d. death, income and educational background
5. The only instance when a life insurance contract is treated primarily as an indemnity
agreement is when a
a. person insures the life of a friend
b. creditor insures the life of his debtor to protect himself
c. person insures the life of his or her spouse to protect against the loss of
income earned by the spouse
d. person in a partnership insures the life of his partner to protect the firm
against loss due to the death of that partner
6. Which of the following describes the convertible feature of a term insurance policy?
a. It may be changed to another term insurance policy without evidence of
insurability
b. It may be changed for a guaranteed sum
c. It may be changed to another whole life policy
d. It may be changed to a permanent insurance without evidence of insurability
AK_IC - MOCK EXAM SET B
