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Focused Exam: OB Triage | Amber Rhoades
Shadow Health: BSN 346 - Concepts of Nursing
III - Complete Fall 2025.
An insured owns a $50,000 whole life policy. At age
47, the insured decides to cancel his policy and exercise
the extended term option for the policy's cash value,
which is currently $20,000. What would be the face
amount of the new term policy?
a) $20,000
b) $25,000
c) $50,000
d) The face amount will be determined by the insurer. -
.....ANSWER ...✔✔ c) $50,000
The face of the term policy would be the same as the
face amount provided under the whole life policy.
If a life policy allows the policyowner to make periodic
additions to the face amount at standard rates, without
proving insurability, the policy includes
a) Guaranteed insurability rider.
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b) Paid-up additions option.
c) Cost of living provision.
d) Nonforfeiture option. - .....ANSWER ...✔✔ a)
Guaranteed insurability rider.
The Guaranteed Insurability rider allows the
policyowner to purchase specific amounts of additional
insurance at specific dates or events, without proving
continued insurability. Rates for the additions are based
upon attained age.
In insurance, an offer is usually made when
a) The completed application is submitted.
b) The insurer approves the application and receives the
initial premium.
c) The agent hands the policy to the policyholder.
d) An agent explains a policy to a potential applicant. -
.....ANSWER ...✔✔ a) The completed application is
submitted.
In insurance, the offer is usually made by the applicant
in the form of the application. Acceptance takes place
when an insurer's underwriter approves the application
and issues a policy.
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All other factors being equal, the least expensive first-
year premium payment is found in
a) Annually Renewable Term.
b) Increasing Term.
c) Decreasing Term.
d) Level Term. - .....ANSWER ...✔✔ a) Annually
Renewable Term.
Annually renewable term is the purest form of term
insurance. The death benefit remains level, but the
premium increases each year with the insured's attained
age. In decreasing policies, while the face amount
decreases, the premium remains constant throughout the
life of the contracts. In level term and increasing term
policies, the premium also remains level for the term of
the policy. Therefore, in the other types of level policies,
the first-year premium would not be different from any
other year.
Using a class designation for beneficiaries means
a) Naming beneficiaries as a group.
b) Not naming beneficiaries.
c) Naming an estate as the beneficiary.
d) Naming each beneficiary by his or her name. -
.....ANSWER ...✔✔ a) Naming beneficiaries as a
group.
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Class designations are used when an insured chooses to
distribute benefits among the living beneficiaries and/or
their heirs without naming each individual person, such as
"all my children."
What type of license is needed to transact non-major
lines of insurance like baggage and accident only
insurance?
a) Expired
b) Provisional
c) Temporary
d) Limited - .....ANSWER ...✔✔ d) Limited
Some limited lines of insurance, as determined by the
Commissioner, may be transacted under a limited
license.
Which of the following policies is characterized by a
provision where the premiums are lower in the early
years of the policy and increase over time to a point
where they become level for the remainder of the
policy?
a) Indeterminate premium whole life
b) Enhanced whole life
c) Minimum deposit whole life
Focused Exam: OB Triage | Amber Rhoades
Shadow Health: BSN 346 - Concepts of Nursing
III - Complete Fall 2025.
An insured owns a $50,000 whole life policy. At age
47, the insured decides to cancel his policy and exercise
the extended term option for the policy's cash value,
which is currently $20,000. What would be the face
amount of the new term policy?
a) $20,000
b) $25,000
c) $50,000
d) The face amount will be determined by the insurer. -
.....ANSWER ...✔✔ c) $50,000
The face of the term policy would be the same as the
face amount provided under the whole life policy.
If a life policy allows the policyowner to make periodic
additions to the face amount at standard rates, without
proving insurability, the policy includes
a) Guaranteed insurability rider.
,2|Page
b) Paid-up additions option.
c) Cost of living provision.
d) Nonforfeiture option. - .....ANSWER ...✔✔ a)
Guaranteed insurability rider.
The Guaranteed Insurability rider allows the
policyowner to purchase specific amounts of additional
insurance at specific dates or events, without proving
continued insurability. Rates for the additions are based
upon attained age.
In insurance, an offer is usually made when
a) The completed application is submitted.
b) The insurer approves the application and receives the
initial premium.
c) The agent hands the policy to the policyholder.
d) An agent explains a policy to a potential applicant. -
.....ANSWER ...✔✔ a) The completed application is
submitted.
In insurance, the offer is usually made by the applicant
in the form of the application. Acceptance takes place
when an insurer's underwriter approves the application
and issues a policy.
,3|Page
All other factors being equal, the least expensive first-
year premium payment is found in
a) Annually Renewable Term.
b) Increasing Term.
c) Decreasing Term.
d) Level Term. - .....ANSWER ...✔✔ a) Annually
Renewable Term.
Annually renewable term is the purest form of term
insurance. The death benefit remains level, but the
premium increases each year with the insured's attained
age. In decreasing policies, while the face amount
decreases, the premium remains constant throughout the
life of the contracts. In level term and increasing term
policies, the premium also remains level for the term of
the policy. Therefore, in the other types of level policies,
the first-year premium would not be different from any
other year.
Using a class designation for beneficiaries means
a) Naming beneficiaries as a group.
b) Not naming beneficiaries.
c) Naming an estate as the beneficiary.
d) Naming each beneficiary by his or her name. -
.....ANSWER ...✔✔ a) Naming beneficiaries as a
group.
, 4|Page
Class designations are used when an insured chooses to
distribute benefits among the living beneficiaries and/or
their heirs without naming each individual person, such as
"all my children."
What type of license is needed to transact non-major
lines of insurance like baggage and accident only
insurance?
a) Expired
b) Provisional
c) Temporary
d) Limited - .....ANSWER ...✔✔ d) Limited
Some limited lines of insurance, as determined by the
Commissioner, may be transacted under a limited
license.
Which of the following policies is characterized by a
provision where the premiums are lower in the early
years of the policy and increase over time to a point
where they become level for the remainder of the
policy?
a) Indeterminate premium whole life
b) Enhanced whole life
c) Minimum deposit whole life
