Life & Health Insurance
Final Exam with 100%
Correct Questions and
Answers!!
Which of these statements concerning an Individual Straight Life annuity is
accurate? Payments are made to an annuitant for life
An individual who purchases a Life annuity is given protection against
The risk of living longer than expected
What is Old Age and Survivors Health Insurance (OASDHI) also known as Social
Security
Which of these retirement plans can be started by an employee, even if another plan is
in existence? Individual Retirement Account (IRA)
Which product would best serve a retired individual looking to invest a lumpsum of
money through an insurance company Annuity
A Key Employee policy is taken out by Company X on its vice president. Ten years
later, this employee leaves Company X and begins working for Company Y. If this
individual were to die and the policy is still in force and unchanged, where would the
death proceeds be directed? Company X
At what point must a life insurance applicant be informed of their rights that fall under
the Fair Credit Reporting Act? Upon completion of the application
Who elects the governing body of a mutual insurance company? Policyholder
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the Fair credit reporting act
When does a Guaranteed Insurability Rider allow the insured to buy additional
coverage? at future dates specified in the contract with no evidence of insurability
required
, The Consideration clause in a life insurance policy indicates that a policyowner's
consideration consists of a completed application and The initial premium
When an insurer issues a policy that refuses to cover certain risks, this is referred to as
a(n) Exclusion
Which provision prevents an insurer from changing the terms of the contract with the
policyowner by referring to documents not found within the policy itself? Entire Contract
provision
What provision in a life insurance policy states that the application is considered part of
the contract? Entire contract provision
Which of these is NOT considered to be a right given to a policyowner? Modify a
provision in the insurance contract
How do life insurance companies handle cases where the insured commits suicide
within the contract's stated Contestable period? Claims are denied under the Suicide
clause of the policy
M had an annual life insurance premium payment due January 1. She died January 10
without making the premium payment. What action will the insurer take? Pay face
amount minus the past due premium
What benefit does the Payor clause on a Juvenile Life policy provide Premiums
are waived if payor becomes disabled
S has a Whole Life policy with a premium payment due soon. Which provision would
keep the policy in force if S does not make the required payment and the policy has
adequate cash value from which the premium payment can be made? Automatic policy
loan
P purchases a $50,000 term life insurance policy in 2005. One of the questions on the
application ask if P engages in scuba diving, to which P "No". The policy is then issued
with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scubarelated
accident in 2011. What will the insurer pay to P's beneficiary? $50,000 minus any
outstanding policy loans
S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S
dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of
rider did S include on the policy Return of premium rider
The automatic premium loan provision is designed to avoid a policy lapse
Which of these statements about a Guaranteed Insurability Option rider is NOT
TRUE? Evidence of insurability is required when the option is exercised
Final Exam with 100%
Correct Questions and
Answers!!
Which of these statements concerning an Individual Straight Life annuity is
accurate? Payments are made to an annuitant for life
An individual who purchases a Life annuity is given protection against
The risk of living longer than expected
What is Old Age and Survivors Health Insurance (OASDHI) also known as Social
Security
Which of these retirement plans can be started by an employee, even if another plan is
in existence? Individual Retirement Account (IRA)
Which product would best serve a retired individual looking to invest a lumpsum of
money through an insurance company Annuity
A Key Employee policy is taken out by Company X on its vice president. Ten years
later, this employee leaves Company X and begins working for Company Y. If this
individual were to die and the policy is still in force and unchanged, where would the
death proceeds be directed? Company X
At what point must a life insurance applicant be informed of their rights that fall under
the Fair Credit Reporting Act? Upon completion of the application
Who elects the governing body of a mutual insurance company? Policyholder
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the Fair credit reporting act
When does a Guaranteed Insurability Rider allow the insured to buy additional
coverage? at future dates specified in the contract with no evidence of insurability
required
, The Consideration clause in a life insurance policy indicates that a policyowner's
consideration consists of a completed application and The initial premium
When an insurer issues a policy that refuses to cover certain risks, this is referred to as
a(n) Exclusion
Which provision prevents an insurer from changing the terms of the contract with the
policyowner by referring to documents not found within the policy itself? Entire Contract
provision
What provision in a life insurance policy states that the application is considered part of
the contract? Entire contract provision
Which of these is NOT considered to be a right given to a policyowner? Modify a
provision in the insurance contract
How do life insurance companies handle cases where the insured commits suicide
within the contract's stated Contestable period? Claims are denied under the Suicide
clause of the policy
M had an annual life insurance premium payment due January 1. She died January 10
without making the premium payment. What action will the insurer take? Pay face
amount minus the past due premium
What benefit does the Payor clause on a Juvenile Life policy provide Premiums
are waived if payor becomes disabled
S has a Whole Life policy with a premium payment due soon. Which provision would
keep the policy in force if S does not make the required payment and the policy has
adequate cash value from which the premium payment can be made? Automatic policy
loan
P purchases a $50,000 term life insurance policy in 2005. One of the questions on the
application ask if P engages in scuba diving, to which P "No". The policy is then issued
with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scubarelated
accident in 2011. What will the insurer pay to P's beneficiary? $50,000 minus any
outstanding policy loans
S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S
dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of
rider did S include on the policy Return of premium rider
The automatic premium loan provision is designed to avoid a policy lapse
Which of these statements about a Guaranteed Insurability Option rider is NOT
TRUE? Evidence of insurability is required when the option is exercised
