LIFE INSURANCE EXAM 90 QUESTIONS WITH COMPLETE SOLUTIONS

LIFE INSURANCE EXAM 90 QUESTIONS WITH COMPLETE SOLUTIONS In general, what amount of personal life insurance premiums is deductible for federal income tax purpose? - Correct Answer None in a life insurance policy, the promise by the insurer to pay certain benefits is the: - Correct Answer Insuring clause W applies for life insurance on W's five year old child and submits the initial annual premium. The producer issues W a receipt and says that coverage will be effective immediately if the application is approved, because no medical examination is required. Which of the following types of receipts did the producer issue? - Correct Answer Conditional Which of the following annuities pays benefits based on units rather than specific dollar amounts? - Correct Answer A variable annuity which of the following term policies guarantees the insured the right to continue term coverage after expiration of the initial policy period? - Correct Answer Renewable An example of limited-pay life policy is - Correct Answer Life Paid-up at Age 65 which of the following items requires that an insurance application state that an investigative consumer report may be obtained on the prospective insured? - Correct Answer Fair Credit Reporting Act A convertible term policy offers which of the following advantages? - Correct Answer the insured does not have to provide evidence of insurability when requesting an conversion. An insurance company may charge a higher total premium to an insured who pays a policy quarterly rather than annually because the quarterly payment results in: - Correct Answer a reduction in the company's interest earning and an increase in administrative expenses. An underwriter's evaluation of information on a life insurance application is also known as - Correct Answer risk classification