Life Insurance/ uCanPass UPDATED
ACTUAL Exam Questions and CORRECT
Answers
401k - CORRECT ANSWER - retirement plan with pre-tax dollars
absolute assignment - CORRECT ANSWER - a permanent and irrevocable transfer of
rights and/or benefits by the policyowner
collateral assignment - CORRECT ANSWER - a temporary and/or revocable transfer of
benefits by the policyowner
accelerated death benefit - CORRECT ANSWER - policy provision that allows full or
partial payment of the policy's death benefit before the insured's death if he/she is terminally ill
accidental death benefit - CORRECT ANSWER - an extra cost rider that requires the
insurance company to pay an additional benefit in the event that the insured dies within 90 days
of an accident as a direct result of the accident
accumulate at interest - CORRECT ANSWER - the dividend option where the
policyowner leaves the dividends with the insurer to invest and earn interest
adhesion - CORRECT ANSWER - sine the insurer created all the documents of the
contract, any ambiguities in the contract will be settled in favor of the insured. Since the insurer
wrote the contract they are stuck with it.
adverse selection - CORRECT ANSWER - the tendency for less favorable risks to seek or
continue insurance to a greater extent than more favorable risks
, agency agreement or agency contract - CORRECT ANSWER - a legal document
containing the terms of the agreement between the agent and the insurance company. it clearly
defines what an agent can and cannot do and how he/she will be compensated.
expressed agent authorities - CORRECT ANSWER - power or authority specifically
granted in writing to an agent by the insurance company in their agency agreement.
apparent agent authorities - CORRECT ANSWER - power or authority that the public
reasonably assumes an agent has based upon his/her actions
implied agent authorities - CORRECT ANSWER - power or authority that is not expressly
granted by the company but that an agent can assume or that are implied he/she has in order to
transact insurance business
agent/producer - CORRECT ANSWER - anyone who sells or aids in the selling of
insurance. legally represents the company
agent's report - CORRECT ANSWER - a written report from the agent submitted to the
insurer along with the application disclosing what the agent knows, observed, or learned about
the proposed insured's risks
aleatory - CORRECT ANSWER - unequal exchange of value. one party may obtain a far
greater value than the other under the contract
annual renewable term - CORRECT ANSWER - a term life insurance contract which
gives the policyowner the option to renew the policy each year without showing proof of
insurability. premiums increase at each renewal
annuitant - CORRECT ANSWER - the person that buys an annuity; may or may not be an
annuity's policyowner
ACTUAL Exam Questions and CORRECT
Answers
401k - CORRECT ANSWER - retirement plan with pre-tax dollars
absolute assignment - CORRECT ANSWER - a permanent and irrevocable transfer of
rights and/or benefits by the policyowner
collateral assignment - CORRECT ANSWER - a temporary and/or revocable transfer of
benefits by the policyowner
accelerated death benefit - CORRECT ANSWER - policy provision that allows full or
partial payment of the policy's death benefit before the insured's death if he/she is terminally ill
accidental death benefit - CORRECT ANSWER - an extra cost rider that requires the
insurance company to pay an additional benefit in the event that the insured dies within 90 days
of an accident as a direct result of the accident
accumulate at interest - CORRECT ANSWER - the dividend option where the
policyowner leaves the dividends with the insurer to invest and earn interest
adhesion - CORRECT ANSWER - sine the insurer created all the documents of the
contract, any ambiguities in the contract will be settled in favor of the insured. Since the insurer
wrote the contract they are stuck with it.
adverse selection - CORRECT ANSWER - the tendency for less favorable risks to seek or
continue insurance to a greater extent than more favorable risks
, agency agreement or agency contract - CORRECT ANSWER - a legal document
containing the terms of the agreement between the agent and the insurance company. it clearly
defines what an agent can and cannot do and how he/she will be compensated.
expressed agent authorities - CORRECT ANSWER - power or authority specifically
granted in writing to an agent by the insurance company in their agency agreement.
apparent agent authorities - CORRECT ANSWER - power or authority that the public
reasonably assumes an agent has based upon his/her actions
implied agent authorities - CORRECT ANSWER - power or authority that is not expressly
granted by the company but that an agent can assume or that are implied he/she has in order to
transact insurance business
agent/producer - CORRECT ANSWER - anyone who sells or aids in the selling of
insurance. legally represents the company
agent's report - CORRECT ANSWER - a written report from the agent submitted to the
insurer along with the application disclosing what the agent knows, observed, or learned about
the proposed insured's risks
aleatory - CORRECT ANSWER - unequal exchange of value. one party may obtain a far
greater value than the other under the contract
annual renewable term - CORRECT ANSWER - a term life insurance contract which
gives the policyowner the option to renew the policy each year without showing proof of
insurability. premiums increase at each renewal
annuitant - CORRECT ANSWER - the person that buys an annuity; may or may not be an
annuity's policyowner
