OO INSURANCE COMMISSION : L “AK LIFE ser, Indicate’ your answer“ by marking the DIRECTION: Choose the cotrett! ANSI Te chect with an X. approptiate. parenthesis ol 4: The settlement optioné provisions may provide al of he following except: a. Payment of the procestls in fixed amounts -Uuntil exhausted b.. Payment of the proceeds. for the life of the insured. Proceeds held by’ ‘the company, with interest payable ‘to the beneficiary on request dq: Payment of the: proceeds over afi ixed period 2. ‘Generally, 2 reinstatement application will: be accepted frorii the owner of lapsed insurance policy 2: Only'a premium ‘due:daté or. during the: "grace, period of an unpaid premium, b. Any time during the lifetime of t e insured: c. Ar tie ete ended im-insurance period Tegardless of its length © Within @ périod of three" ‘or five years. after the date: of lapse as Poecites fied in the policy 3~ Limited payment life: Policies are called such’because those 8 policies a. Limit the number ‘OF beneficiaries: thereby minimizing problems of paying too many people” i bp. Limit the’conditions: “which: the policies: aré‘payable Limit the period during. which retiums. are payable @. “Shorten the petiod ‘when the beneficiaries may be paid. 4. The" fundamental advantage of: the: uise°of life ‘insurance’ as a means of meeting ‘economic losses .is that: hou life: ‘insurarice’ these losses are @ Spread oer e ire ber ‘of people ©. ‘as they arise through savings accumulate ba: O Deferred fora spectied petiod a ine, i" oi onan assessment sis d. ‘Reduced for the group ‘asa whole tr igh:the inultipligr cfiect 5. iniife Iheurants, the term * indaird rates” generally Is uséd to refer to . gore e nalts thah “those .expécted by: the’ company jortality. rates . Mortal. rates that are-lower than the. rates. uggested by the regilaton, Premiums: charged 16 © average Tsk categories ereons Who €fé.considérad :t6 “be higher-than- _ a. Premiums charged for policies with iow sinduns. Scanned with CamScanner°6.” A businessman’has arranged for @ development loan which will be avertaty from riow..Because he is, unable to wait until then he has arraniged'an, intern oo with: his:bank. The only problem is that the bahk wants loan secured againe wre “risk. of Ris. death: What. is: the’ best\economie arrangement. that you oe Tecommend? |: tha hes . a. Yearly renewable term ** + bx Extended term’ * © Anterim term ‘d.. Decreasing term &°72,:The ‘only instance’, when. a."life’ insurance. contraict “is ‘treated primarily as an indemnity agreement is when a : - @: Creditor insures the life'of his debtor to protect himself 'b.. Person. in a partnership-insures ‘the: life: of his -partner to" protect the firm against loss dué to the death of that pariner .-Person insures. the ‘life: of his ot-her, spouse to protect-against the loss of “Income earned by the spouse” “ 4. Aperson insures the life of a friend °8: Participating ife:insuranice: policies are policies, which .: Permit beneficiaties 16, exercise’ certain-Gwnership rights-during the lifetime * oftheinsured 0s: Pome anne, in the wordirig of certain provisions listribuution ‘of dividends to the policyowner lich must. be paid to stockholders: eft of a-policy is restricted in amount during the early years of fis, Known 8 °° a a ee The basic purposes. the initial: premiur sot fo Scanned with CamScannerEe f 41: A hazardous occupation could be defined as “a.An occupation which exposes the Insured to social hazards “. Years immediately following the: insured 's death @® Period. during ‘which: the: childfen: are small and’ cannot Provide for 47.Which of the following describes the.convertible feature of a term insurance policy? < ILmay be changed to. another whole life policy .. . | 2 t may be ‘changed to a permanent insurance without evidence of insurability ©, it may be. changed for a guaranteed sum.» ; . ; d. it'may be changed: to ‘another: term insurance ‘policy without evidence. of insurability 4a ae -18.A:person wanting a greaier ‘coverage for the Jeast amount of premium has an option of attaching what rider permanent life policy? © ‘Tenm insurance. rider -; 0. Waiver of premium: 2G: May. be insured at Inoreased fates to compensate for the extra-hazard .B. Are issued policies without any hon-forfeitire values . ©. Therefore sannot Obtain life insurance in any company: _ de Are required to pay premiums on an annual basis 24-Life insurance policy; 1 “exceedthe.. ° a.’ Net mount of tisk’ % sey "-. Present value of future premidime @. Cash value of the. policy. pe 24." Total premiums paid 8 ar6:limited-toan- amount which. with interest will not Scanned with CamScanner22. Your client fells ells yo that when his father died, he received m fee and that he had-not even known that this policy existed. wee $00 fos of Estate ssifications did your cent fall under? the Yoon @ Irrevocable primary. beneficiary Revocable primary beneficiary | e Collateral ‘assignee » qd. Absolute assignee 23. Whicli of the following statements is false? a. When a policy lapses, the: agent Joses all future. commissions On renewal premiums: b. .Too many lapsed: pélicies tan'cause an agent's agreement to be cancelled @ Agents with persistent business seldom stay long with oné.company |: When @-policy, BpoeS agent loses'a valuable source of prospect 24 in practice, most claims for the death, penefis' ‘Of life. insurance Policies are a, ‘Settled by interpleader proceedings. sine’ eek b: -Paid.on the first, Policy anniversary after the death of the insured © ‘Paid. promptly as S007} as properly: fempletea ol >. “ve the company: |.“ Investigated: thordughy, for evidence avinentis ave: . ‘of ‘ae by blood: ‘or marriage ‘conomie. loss: would: occur: at the'death of.the ee 5 Scanned with CamScanner© 28,lf the person whose Paid, the amount that the insurance Was not _ USually the Face amount of Casly surrender value of the policy minus the unpaid premium life is instired dies duting:the grace period end the Premiums company will pay to the benefciay the policy minus the unpaid premium o Full face-amount of the policy ae 4. ‘Total: premiums paid up to the data of birthiplus interest , » 28.Which. of the. following statements about Disability Waiver of Premium Rider is » voincorrest? 3 vee a, Disability must occur before a staiéd ate b. [ches to be attached to a life insurance policy in<6-Thete is awaiting period” -<¢ © "The insired has to die while disable 30; The. total life: coverage’ of a permanent. basic ‘policy. can. be greatly increased > through the use’ of =: _ 32:Under ‘an of the period étated:in the poll Allof the, nidowiment:palicy; Ls the’ ules direntlyto the welfare ‘and progress of the country by 2. Accumisiating capital for investment in commerce and industry 'b. ‘Partially relieving the community of the care of de, “Encouraging provisi the above: pondents. for the future 5 }erease every time the polly Is renewed for as long as the policy is in force Tequired every renewal he policy only once. eee : Scanned with CamScanner35. ‘Which: statement i is false when the owner borrows on a policy? -@ Dividend wit be reduced by the amount of the current interest he: proceeds ‘of tf he poli ds by the amount-of unpaid plug interesi, inguted ah ey will be reduced by paid loan . The policy ‘il lapse ‘if, after reasonable notice the indebtedness exceeds the.cash valu Wa large Woah is taken after-the policy has been in force for some years, the interest cost may:exceed the premium.’ 7 : 36.AlL of the following aire Slender Provision ofa life insurance policy except: aA gtace period iaides *b.="An entire contract clause * An automatic premium loan. clause. 2A Misstaiement of age Clause ‘37. All of the folowing te plies can. be old asa basic policy contract exéept Scanned with CamScanner“DIRECTION: on 4 : STATEMENT IS TRE ANSWER SHEET, UNDER COLUMN A, WRITE TIF THe E AND F IF THE STATEMENT IS FALSE. oh 44.4 person's human @cohomic vz S alue is defined as the total value of. the assets and any future. earings derived th: ere from. F wa Most life insurance apptications, the ldrgest amount of information requested is ata which describes the type of insuranoe applied for / F-43.Because the renewal ofa tem life insurance policy “presents. an’ increased +3 Possibility of anti-selection, itis customary for the insurance company to-.require : - Some evidence of insurability each time the policy is renewed oo TT 44-The commuted value of an insurance policy is the single sum of money; which is See equal in value to the ‘discounted future. payments-* ~"T.-45:A Retirement Annuity is @ kind of ; pension for life with no life coverage, oF. 46. A Family Income: Rider: ‘Specifically desighied:‘to: provide: an income for the adjustment period immediately following death * en emp) thé-group: is insurable group-is working a minimum number of hours Tt 47.4n group insurance .it is, assume . “provided that every member vis (usually $0) each: "48. Group te insurance covers di - place of employment 40. The cach value of an endowing v "policy of the same duration -“T5O.Life insureneé companies make sé of the la; ity i it Life inure 1 laws of probability in orcier-to determine ‘the experienced | rate ‘among Insured Peruana iS uilds ‘up faster than that for a limited pay life Scanned with CamScanner