Insurance Exam Practice Exam: Questions and Answers
Which of the following annuity benefit payment
options would generate the highest monthly All of the following are true regarding annuities -
payments to the contract owner upon ANSWER -They are purchased by those
annuitization? - ANSWER -Pure or straight who are worried about outliving their savings.
life
They are not suitable as short term investments.
They may be used as a life insurance settlement
All of the following are dividend options on a option.
participating life insurance policy: -
ANSWER -Paid-up additions
1-year term
Cash Which of the following would not be considered to
be ordinary life insurance? - ANSWER -
Group (Life Insruance)
The person upon whose life an annuity is based
is known as the: - ANSWER -Insured
All of the following are true regarding dividends
paid by a mutual life insurance company -
ANSWER -They are not guaranteed
When a policyowner uses the cash value in their
policy to buy a lesser amount of permanent life They are legally defined as a return of premium
insurance, they have exercised which and are not taxable
nonforfeiture option: - ANSWER -Reduced
paid-up They are paid out of the insurer's accumulated
surplus
Which of the following life insurance settlement
options enables the beneficiary to conserve the Which type of term life insurance has a level face
proceeds of a life insurance policy? - amount but a premium that increases each year
ANSWER -Interest only as the insured gets older? - ANSWER -
Renewable
In the case of a variable annuity sold to a senior
citizen in this state for which the owner has The transfer of risk to an insurance company is
directed that the premium be invested in the an effective risk management technique when: -
mutual funds underlying the contract during the ANSWER -The amount and frequency of
30-day cancellation period, cancellation during future losses are unknown
that period entitles the owner to a refund of: -
ANSWER -The account value
The owner of a life insurance policy may do all of
1/4
Which of the following annuity benefit payment
options would generate the highest monthly All of the following are true regarding annuities -
payments to the contract owner upon ANSWER -They are purchased by those
annuitization? - ANSWER -Pure or straight who are worried about outliving their savings.
life
They are not suitable as short term investments.
They may be used as a life insurance settlement
All of the following are dividend options on a option.
participating life insurance policy: -
ANSWER -Paid-up additions
1-year term
Cash Which of the following would not be considered to
be ordinary life insurance? - ANSWER -
Group (Life Insruance)
The person upon whose life an annuity is based
is known as the: - ANSWER -Insured
All of the following are true regarding dividends
paid by a mutual life insurance company -
ANSWER -They are not guaranteed
When a policyowner uses the cash value in their
policy to buy a lesser amount of permanent life They are legally defined as a return of premium
insurance, they have exercised which and are not taxable
nonforfeiture option: - ANSWER -Reduced
paid-up They are paid out of the insurer's accumulated
surplus
Which of the following life insurance settlement
options enables the beneficiary to conserve the Which type of term life insurance has a level face
proceeds of a life insurance policy? - amount but a premium that increases each year
ANSWER -Interest only as the insured gets older? - ANSWER -
Renewable
In the case of a variable annuity sold to a senior
citizen in this state for which the owner has The transfer of risk to an insurance company is
directed that the premium be invested in the an effective risk management technique when: -
mutual funds underlying the contract during the ANSWER -The amount and frequency of
30-day cancellation period, cancellation during future losses are unknown
that period entitles the owner to a refund of: -
ANSWER -The account value
The owner of a life insurance policy may do all of
1/4
