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Life & Health Insurance Exam| Questions and Verified ANSWERs|100% Correct Which type of life policy contains a monthly mortality charge as well as self-directed investment choices?
ANSWER: Variable Universal Life
The receipt given to a life insurance applicant when the application is completed and the initial premium is received is
called a(n):
ANSWER: Insurable Receipt
Statements in the application for insurance that are believed to
be true to the best of the applicant's knowledge are:
ANSWER: Representations
An annuity is considered fixed when it does all of the following
EXCEPT:
ANSWER: Provide the annuitant with an interest rate that is
lesser of the guaranteed or current rate
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The most common type of whole life insurance where premiums are payable over the whole life of the insured to age 100 is
called:
ANSWER: Continuous Premium (Straight) Life
The policy and a copy of the application, along with any riders
and amendments, is called the:
ANSWER: Entire Contract
Money borrowed from the policy's cash value is:
ANSWER: Not taxable
Which of the following annuity products requires an agent to hold a securities license?
ANSWER: All annuities (Variable, Deferred & Equity Indexed)
Which type of annuity settlement stops when the annuitant dies?
ANSWER: Life Income Annuity
At what age can a participant receive distributions from a qualified plan without incurring a 10% penalty?
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ANSWER: 59 1/2
Two business partners own life insurance on each other. If one partner dies, which of the following contracts will allow the surviving partner to use the death benefit to purchase the deceased's business interests?
ANSWER: Buy-Sell Agreement
Which type of policy allows the insured to change the amount of the death benefit, the amount of premium, or the type of coverage as their needs change?
ANSWER: Adjustable Life
If an annuitant dies during the accumulation period, what will the beneficiary receive?
ANSWER: Either the cash value or the premiums paid,
whichever is greater
Any insurer who is NOT approved to do business in this state is
considered:
ANSWER: Nonadmitted
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To prevent people from profiting from a loss, insurers is the
certain:
ANSWER: Insurable Interest Exists
If a misstatement of age is discovered during the processing of a life insurance claim, what will the insurer do?
ANSWER: Adjusts the death benefit based on the premiums that
were paid
Which of the following allows an insurance company to deny coverage of the insured's death occurs in war?
ANSWER: Policy Exclusions
Each of the following is a typical characteristic of group life
insurance EXCEPT:
ANSWER: Evidence of insurability is usually required
A life settlement option that pays out the death benefit incrementally, in a specified amount until all of the proceeds are
