Professional Documents
Culture Documents
1. If the interest on the policy loan is not paid at the policy anniversary the insurance company may
3. When you bought an insurance policy on your wife’s life, you were 27 and she was 26, but you stated
that you were 26 and she was 27. Five years later your wife died. The insurer will pay.
5. A man applied for a Ps 20,000 whole life policy and paid the full initial premium to the soliciting agent.
The agent issued a binding receipt. Under such receipt, the insurance company
7. The insured named a primary and secondary revocable beneficiary for Ps. 20,000 policy. Which of the
following is correct?
8. In a policy where an irrevocable beneficiary has been designated the insured, without the
beneficiary’s permission, can
9. A father has his present life insurance payable to his estate and because he has now retired, he wants
to pass the policy on to his son who will assume the premium payments. Which of the following will he
have to appoint his son to achieve his desire and protect the son from Estate Tax Liability?
10. In the event that a policy owner elects the paid-up insurance option
a. The premiums stop and the policy continues for the full face amount until age 65
b. The insurance continues at a reduced amount and with a reduced premium
c. The policy will automatically terminate
d. The premiums cease and protection continues with a reduced amount of coverage
11. The company will allow a policy change from a higher premium to a lower premium provided the
insured
12. A policy which permits the policy holder to vary the level of premium or the sum insured, and has its
cash values dependent upon the investment performance and the level of premium paid is known as
policy.
14. Indicate which of the following is not function of an application for life insurance policy.
15. Both endowment and term life insurance policies provide that
a. No cash value is available to the policy owner during the term of the policy
b. Renewal and conversion privileges are available
c. A benefit will be paid at the end of the period of coverage if the person insured is then
alive
d. Insurance protection will be limited to a specific period
16. Which of the following is the least important reason for requiring that the insurance agents be
licensed?
17. An insurance company generally has the right to rescind a life insurance policy if
a. Company discovers at any time that the policy owner was actually a minor at the time
of application
b. Insured person intentionally kills himself during the suicide exclusion period specified in
the policy
c. Insured person is killed in military actions during the contestable period of the policy
d. Company discovers during the contestable period that the application contains a
material statement.
19. In most life insurance applications, the largest amount of information requested is data which
20. The total life coverage of a permanent basic policy can be greatly increased through the use of
21. Notwithstanding possible legal impediments, if the owner of an endowment at age 65 policy tells
you that the maturity of the policy, he wants to provide his church with a monthly donation for as long
as the church exists. Which option do you recommend?
24. Endowment life insurance and term life insurance are similar in that both plans
25. An agent who determine a prospect’s complete financial requirements preparatory to offering him a
policy using the correct approach known as
a. Counselor selling
b. Total needs selling
c. Planned selling
d. Multiple product selling
26. Which of the following statements about “Disability Waiver of Premium Rider” is false?
27. The conservation of the life insurance policy is dependent on all following except:
28. All of the following are sources of information to an insurance company pertaining to the insurability
of an applicant except:
30. If the applicant for life insurance fails to disclose or mispresents a material fact, the contract is
31. The basic coverage provided by life insurance policies may be supplemented by separate provision
that provide coverage for additional amounts or of a different nature. Collectively these provisions are
known as
a. Riders
b. Deposit privileges
c. Dividends
d. Assignment
a. The cash value of a whole life policy builds up at a slower rate than for a 20-year
endowment
b. The cash value in a permanent policy is guaranteed by the company
c. The cash value of an endowment builds up faster than that for a limited pay life policy of
the same duration
d. Because of its very short duration the cash value of a yearly renewable term policy
grows very fast
33. The settlement options provision may provide all the following except:
34. In certain situations a company may file interpleader actions with a Court of Law. This remedy is
used to
35. Non-forfeiture provision are included in whole life and endowment policies to assure the policy
owner that certain minimum policy benefits shall remain with him even under certain changed
condition. Non-forfeiture values guarantee to the policy owner that
36. Purchasing a continuous-premium, whole life policy rather than a limited-payment, whole life policy
gives the policy owner the advantage of
37. If the interest on a policy loan is not paid at the policy anniversary, the insurance company may
39. Which of the following does not have a legitimate insurable interest?
DIRECTION: Under the column A of your answer sheet, write T if the statement is TRUE and F if the
statement is FALSE.
_F_ 41. An endowment at age 65 policy with premium payable for a limited period of 20 years pays the
full amount after 20 years.
_T_42. A policy that provides guaranteed cash value plus extra annual distributions and pays the insured
after a specified time is known as participating endowment.
_T_43. In the case of misstatement of age, the amount of insurance is adjusted to the amount which the
premium paid at the correct age would have purchased.
F 44. In a case where the premium has not been paid and the cash value has been exhausted, the
policy can still avail of grace period.
T 45. Anti-selection occurs when the persons in poor health wish to buy insurance.
T 46. According to the law of large numbers, events which happen seemingly by chance will actually be
bound to follow a predictable pattern, if enough such happenings are observed.
F 47. In most life insurance application, the largest amount of information requested is data which
identifies the applicant.
T 48. A policy is not rendered void by reason of misstatement of the assured’s death.
F 49. In a group insurance it is assumed that every member of the group is insurable, provided that
every member of the group is working a minimum number of (usually 50) each week.
F 50. A policy is still in force for the full face amount and will remain in force for a further period of
four years and 118 days without the payment of any premiums has availed of paid-up insurance option.