Hawaii Life Insurance Review Exam Correctly Solved

Representations are written or oral statements made by the applicant that are - Considered true to the best of the applicant's knowledge The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective? - As of the application date Which of the following is the best reason to purchase life insurance rather than annuities? - To create an estate Stranger-originated life insurance policies are in direct opposition to the principle of - insurable interest Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process? - Buyer's Guide When must insurable interest exist in a life insurance policy? - At the time of application An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this? - Reinstatement provision Which of the following information will be stated in the consideration clause of a life insurance policy? - The amount of premium payment When a policyowner designates a group of individuals as the beneficiary of a life insurance death benefit without naming the individuals, this is called - Class designation Which of the following is incorrect concerning a noncontributory group plan? - The employees receive individual policies An insured receives an annual life insurance dividend check. What term best describes this arrangement? - Cash option An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have? - Universal Life In a life settlement contract, whom does the life settlement broker represent? - owner