Generally If an application is not prepaid, the effective date of begins on the date
the...
1. Application is signed
2. Application is postmarked and mailed to the insurer
3. Company underwriter approves the risk
4. Producer delivers the policy and collects the premium
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4. Producer delivers the policy and collects the premium
Which of the following is an example of risk sharing?
1. Purchasing an insurance policy to cover liability exposure
2. Installing a sprinkler system in a high-rise building
3. Pulling money to cover malpractice exposure
4. Choosing not to purchase a car
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1. Purchasing an insurance policy to cover liability exposure
Policy owner surrenders a policy for its cash value, when is tax liability incurred?
1. The cash value exceeds all premiums paid
2. The cash value is less than premiums paid
3. The policy is exchanged for a policy of equal value
4. The party is transferred to a third party
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, 1. The cash value exceeds all premiums paid
Which of the following is a provision is an interest- sensitive life policy which allows
the policy owner to withdraw the policies cash value interest fee?
1. Partial surrender
2. Automatic premium waiver
3. Waiver of premium
4. Spendthrift clause
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1. Partial surrender
He's life insurance policy offers a 30 day grace period. This prevents the policy from
being canceled a payment is received late, but within 30 days of the premium due
date. Which of the following is TRUE, if an insured dies within the 30 day grace
period?
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The late premium will be subtracted from the benefit amount
If a producer is found guilty of signing an applications name, the commissioner can do
all of the following EXCEPT...
, 1. Place the producer on probation
2. Levy a civil fine on the producer
3. Suspend or revoke license
4. Require the producer to tell the client
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4. Require the producer to tell the client
How does a graded premium whole life policy differ from a modified premium whole
life policy?
1. It increases the premium annually during the first several years of the policy
2. It increases the premium annually for the duration of the policy
3. It increases the premium once during the duration of the policy
4. It has a lower premium for the duration of the policy
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4. It has a lower premium for the duration of the policy
If the annuitant dies before the annuity start date, the interest earned is...
1. Taxable
2. Nontaxable
the...
1. Application is signed
2. Application is postmarked and mailed to the insurer
3. Company underwriter approves the risk
4. Producer delivers the policy and collects the premium
,Give this one a try later!
4. Producer delivers the policy and collects the premium
Which of the following is an example of risk sharing?
1. Purchasing an insurance policy to cover liability exposure
2. Installing a sprinkler system in a high-rise building
3. Pulling money to cover malpractice exposure
4. Choosing not to purchase a car
Give this one a try later!
1. Purchasing an insurance policy to cover liability exposure
Policy owner surrenders a policy for its cash value, when is tax liability incurred?
1. The cash value exceeds all premiums paid
2. The cash value is less than premiums paid
3. The policy is exchanged for a policy of equal value
4. The party is transferred to a third party
Give this one a try later!
, 1. The cash value exceeds all premiums paid
Which of the following is a provision is an interest- sensitive life policy which allows
the policy owner to withdraw the policies cash value interest fee?
1. Partial surrender
2. Automatic premium waiver
3. Waiver of premium
4. Spendthrift clause
Give this one a try later!
1. Partial surrender
He's life insurance policy offers a 30 day grace period. This prevents the policy from
being canceled a payment is received late, but within 30 days of the premium due
date. Which of the following is TRUE, if an insured dies within the 30 day grace
period?
Give this one a try later!
The late premium will be subtracted from the benefit amount
If a producer is found guilty of signing an applications name, the commissioner can do
all of the following EXCEPT...
, 1. Place the producer on probation
2. Levy a civil fine on the producer
3. Suspend or revoke license
4. Require the producer to tell the client
Give this one a try later!
4. Require the producer to tell the client
How does a graded premium whole life policy differ from a modified premium whole
life policy?
1. It increases the premium annually during the first several years of the policy
2. It increases the premium annually for the duration of the policy
3. It increases the premium once during the duration of the policy
4. It has a lower premium for the duration of the policy
Give this one a try later!
4. It has a lower premium for the duration of the policy
If the annuitant dies before the annuity start date, the interest earned is...
1. Taxable
2. Nontaxable
