Life Insurance Exam Prep: Applications, Policy
Provisions, Universal & Variable Life, and
Annuities
If an agent fails to obtain an applicant's signature on the application, the agent must - ✔✔Return the
application to the applicant for a signature
Why should the producer deliver the policy when the first premium has already been paid? - ✔✔To help
the insured understand all aspects of the contract.
Most agents try to collect the initial premium for submission with the application. When an agent
collects the initial from the applicant, the agent should issue the applicant a - ✔✔Premium receipt
What is the purpose of a conditional receipt? - ✔✔It is intended to provide coverage on a date earlier
than the date of the issuance of the policy
A prospective insured receives a conditional receipt but dies before the policy is insured. The insurer will
- ✔✔Pay the policy proceeds only if it would have issued the policy
Who makes up the Medical Information Bureau? - ✔✔Insurers
A producer agent must - ✔✔- Collect any premium due
- Explain the rating procedures if the policy is rated differently than applied for.
- Explain the policy provisions, riders, and exclusions.
Which of the following best describes the MIB? - ✔✔It is a nonprofit organization that maintains
underwriting information on applicants for life and insurance.
The aleatory nature of an insurance contract - ✔✔Exchange of unequal values
, Premium amounts and surrender values are included in - ✔✔Policy summaries
Describes the features and elements of the specific policy for which a person is applying - ✔✔Policy
summary
A Universal Life Insurance policy is best describes as - ✔✔An Annually Renewable Term policy with a
cash value account
The policy owner of a Universal Life policy may skip paying the premium and the policy will not lapse as
long as - ✔✔The policy contains sufficient cash value to cover the cost of insurance
The death protection component of Universal Life insurance is always - ✔✔Annually Renewable Term
If an agent wishes to sell variable life policies, what license must the agent obtain? - ✔✔Securities
An example of a limited-pay life policy - ✔✔Life Paid-ip at age 65
All other factors being equal, the least expensive first year premium payment is found in - ✔✔Annually
Renewable Term
If an annuitant dies before annuitization occurs, what will the beneficiary receive? - ✔✔Either the
amount paid into the plan or the cash value of the plan, whichever is the greater amount
If an annuitant dies during the accumulation period, who will receive the annuity benefits? -
✔✔Beneficiary
A "second-to-die" policy - ✔✔Survivorship life
J purchased a $100,000 Joint Life policy on himself and his wife. Eight years later, he died in an
automobile accident. How much will his wife receive from the policy? - ✔✔$100,000
Provisions, Universal & Variable Life, and
Annuities
If an agent fails to obtain an applicant's signature on the application, the agent must - ✔✔Return the
application to the applicant for a signature
Why should the producer deliver the policy when the first premium has already been paid? - ✔✔To help
the insured understand all aspects of the contract.
Most agents try to collect the initial premium for submission with the application. When an agent
collects the initial from the applicant, the agent should issue the applicant a - ✔✔Premium receipt
What is the purpose of a conditional receipt? - ✔✔It is intended to provide coverage on a date earlier
than the date of the issuance of the policy
A prospective insured receives a conditional receipt but dies before the policy is insured. The insurer will
- ✔✔Pay the policy proceeds only if it would have issued the policy
Who makes up the Medical Information Bureau? - ✔✔Insurers
A producer agent must - ✔✔- Collect any premium due
- Explain the rating procedures if the policy is rated differently than applied for.
- Explain the policy provisions, riders, and exclusions.
Which of the following best describes the MIB? - ✔✔It is a nonprofit organization that maintains
underwriting information on applicants for life and insurance.
The aleatory nature of an insurance contract - ✔✔Exchange of unequal values
, Premium amounts and surrender values are included in - ✔✔Policy summaries
Describes the features and elements of the specific policy for which a person is applying - ✔✔Policy
summary
A Universal Life Insurance policy is best describes as - ✔✔An Annually Renewable Term policy with a
cash value account
The policy owner of a Universal Life policy may skip paying the premium and the policy will not lapse as
long as - ✔✔The policy contains sufficient cash value to cover the cost of insurance
The death protection component of Universal Life insurance is always - ✔✔Annually Renewable Term
If an agent wishes to sell variable life policies, what license must the agent obtain? - ✔✔Securities
An example of a limited-pay life policy - ✔✔Life Paid-ip at age 65
All other factors being equal, the least expensive first year premium payment is found in - ✔✔Annually
Renewable Term
If an annuitant dies before annuitization occurs, what will the beneficiary receive? - ✔✔Either the
amount paid into the plan or the cash value of the plan, whichever is the greater amount
If an annuitant dies during the accumulation period, who will receive the annuity benefits? -
✔✔Beneficiary
A "second-to-die" policy - ✔✔Survivorship life
J purchased a $100,000 Joint Life policy on himself and his wife. Eight years later, he died in an
automobile accident. How much will his wife receive from the policy? - ✔✔$100,000
