NAPSRx Final Exam 2 (Latest 2023-2024)
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- A level premium indicates
Answer: the premium is fixed for the entire duration of the
contract
- A noncontributory group term life plan is characterized by
Answer: the entire cost of the plan is paid for by the employer
- Which provision is NOT a requirement in a group life policy?
Answer: Accidental". An AD&D provision is not required in a
group life policy.
- Which of these statements concerning an Individual Straight Life
annuity is accurate?
Answer: Payments are made to an annuitant for life
- The Consideration clause in a life insurance policy indicates that
a policy- owner's consideration consists of a completed application and
Answer: the first initial premium
- What action will an insurer take if an interest payment on a
policy loan is not made on time?
Answer: automatically add the amount of interest due to the loan
balance
- What action can a policyowner take if an application for a
bank loan requires collateral?
Answer: Assign policy ownership to the bank
- M had an annual life insurance premium payment due January
- She died January 10 without making the premium payment.
What action will the insurer take?Answer: Pay face amount minus the past due premium 1 / 3
- N is a student pilot with a large life insurance policy. Which of
these features would limit the insurer's obligation in the event N was killed while flying as a student pilot?
Answer: Exclusions are specified hazards listed in a policy for
which benefits will not be paid
- Which of these life insurance riders allows the applicant to
have excess coverage?
Answer: Term riders allow an applicant to have excess life
insurance coverage
- Whose life is covered on a life insurance policy that contains
a payor benefit clause?
Answer: Child
- In a Life insurance contract, an insurance company's
promise to pay stated benefits is called the
Answer: Insuring clause
- An insured is past due on his life insurance premium, but is still
within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period?
Answer: Full face amount minus any past due premiums
- P is the insured on a participating life policy. Which statement is
true if P's premiums are waived due to a disability?
Answer: P will still receive declared dividends
- What kind of special need would a policyowner require with an
Adjustable Life insurance policy?
Answer: flexible premiums
- What type of life insurance are credit policies issued as?
Answer: Term
- How long does the coverage normally remain on a limited-pay
life poli- cy?
Answer: 100 years
- / 3
- Which of these statements describe a Modified Endowment
Contract (MEC)?
Answer: Exceeds the maximum amount of premium that can be
paid into a policy and still have it recognized as a life insurance contract
- Which of these is an element of a Variable Life policy?
Answer: A fixed, level premium
- The amount of coverage on a group credit life policy is
limited to
Answer: the insured's total loan value
- What type of life insurance incorporates flexible premiums
and an ad- justable death benefit?
Answer: Universal Life
- Which statement is correct regarding the premium payment
schedule for whole life policies?
Answer: Premiums are payable throughout the insured's lifetime/
coverage lasts until death of the insured
- What type of life policy has a death benefit that adjusts
periodically and is written for a specific period of time?
Answer: Decreasing term
- What kind of life insurance policy pays a specified monthly
income to a beneficiary for 30 years and then pays a lump sum benefit at the end of that 30 years?
Answer: A Family Maintenance Policy pays a monthly income
from the date of death of the insured to the end of the preselected period. The payment of the face amount of the policy is payable at the end of such preselected period
- What kind of life insurance product covers children under their
parent's policy?
Answer: A Term rider
- / 3