Life Insurance MCQs

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P wants to name her husband as the beneficiary of her life policy. However, she wishes to retain all of the rights of ownership. P should have her hus...





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A contract that has as its basic function the systematic liquidation of accumulated assets through periodic payments is called an:






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An insurance producer takes an application for a life insurance policy but does not collect the initial premium. On delivery of the policy to the prop...






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An employer can deduct premium payments as an ordinary business expense for which of the following life coverages?






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A producer takes applications from identical twins who want to buy the same type of policy in the same amount. The insurer issues the policies as appl...






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In the event of an insured's death, which of the following provides an income for the family during a designated period of time followed by a lum...






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Which of the following statements is CORRECT about Group Life conversion privileges?






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Which of the following policies is an interest-sensitive form of permanent protection?






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Reinstatement of a life insurance policy requires an insured to take all of the following actions EXCEPT:






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Which of the following statements about a Renewable Term policy is CORRECT?






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If an insured commits suicide after the Suicide clause in the insured's life insurance policy has expired, the insurer will take which of the fol...






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Which of the following policy provisions provides for continuation of coverage despite nonpayment of premiums?






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An applicant for life insurance may question the validity and source of any consumer information developed under the






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The PRIMARY reason for selecting a Variable Whole Life policy instead of a traditional Whole Life policy is that the Variable Whole Life policy:






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A policyowner names his wife as the primary beneficiary of his Universal Life policy on a revocable basis. He also names his three children as his sec...






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The Waiver of Premium provision of a life policy allows the insurer to take which of the following actions?






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Under the Social Security Retirement Benefits, all of the following factors will influence how much a retiring individual will receive as a monthly in...






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The PRIMARY purpose of an inspection report is to assess an applicant's:






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If a policy contains a Guaranteed Insurability rider, the insured has the right to purchase:






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Which of the following statements is NOT correct about representations?






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If an Adjustable Life policyowner makes an additional premium payment, the policy may be affected in all of the following ways EXCEPT the:






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An insured owns a $10,000 policy with a $4,000 cash value and a 6 percent interest rate. On January 1, the insured borrows $500 and pays one year'...






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Which of the following retirement plans is tax-qualified? A. B. C. D.






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A life insurance application is incomplete if it is missing the signature of which of the following?






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The right to change a beneficiary designation is reserved for the:






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All of the following policies may be examples of third party ownership EXCEPT:






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In life insurance, insurable interest must exist at the time the






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A payor benefit rider provides which of the following benefits






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Two business partners own life insurance on each other. If one partner dies, which of the following contracts will allow the other partner to buy 100 ...






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If life insurance policy applicant is classified as a substandard risk, the insurance company will MOST likely:






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When a producer submits an insurance application to the company, the producer must take all of the following actions EXCEPT:






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In life insurance, the Free Look provision begins on the:






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A client needs a substantial amount of protection but has limited financial resources. Which of the following insurance policies would BEST meet the c...






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A life policy is usually contestable due to material misrepresentation on the application for a period of:






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Which of the following statements is CORRECT about the Paid-Up Additions in a participating Whole Life policy?






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In which of the following contracts is the Death benefit called the principal sum?






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At which of the following times MUST a life insurance applicant be informed of their rights under the Fair Credit Reporting Act?






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R has just graduated from law school. R knows that R's future earnings will be much higher than they are now, but wants to purchase a permanent p...






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Federal income tax laws generally treat proceeds of life insurance policies as:






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Which of the following policy provisions states that the application is part of the policy?






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What are the personal uses of life insurance?






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Which of the following features allows an insurance policy to remain in force for a specified number of days beyond the premium due date?






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Which of the following provisions in a life policy specifies the manner in which proceeds will be paid to a beneficiary on the death of the insured?






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An applicant's statements on an application are considered to be legal:






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Which of the following terms refers to the transfer of some or all of the ownership rights of a life insurance policy from one individual to another? ...






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A contract that promises to pay an income to an insured until his/her death is called:






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Which of the following group life plans requires at least 75 percent of the eligible members to participate?






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An insured intentionally understates her age on her application for a life policy. At death, the insurer will take which of the following actions?






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Which of the following annuities would BEST suit the needs of a 35-year-old factory worker who is concerned about inflation and wants to establish a r...






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A type of annuity in which the cash values are invested in securities is called:






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Upon the submission of a death claim under a life insurance policy, when should the insurer pay the policy benefit?






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Which of the following is the closet term to an "authorized" insurer?






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The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but their children ...






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When contributions to an immediate annuity are made with before-tax dollars, which of the following is true of the distributions?






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Insurance is the transfer of






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An insured purchases a policy in 2008 and died in 2013. The insurance company discovers at that time that the insured concealed information during the...






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An agent accepts the premium payment 35 days after it is due, telling the insured that there will not be a problem keeping the policy in force. This i...






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An annuitant dies before the effective date of a purchased annuity. Assuming that the annuitant's wife is the beneficiary , what will occur?






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In a fixed annuity, which of the following is true regarding the guaranteed interest rate on the investment?






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An insured receives a monthly summary for his life insurance policy. He notices that the cash value of his policy is significantly lower this month th...






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Which of the following riders would not cause the Death benefit to increase?






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Which of the following is true for both equity indexed annuities and fixed annuities?






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Who can make a fully deductible contribution to a traditional IRA?






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Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner?






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Which of the following are generally not considered when underwriting group insurance?






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Because of financial obligations, John felt that he needed more insurance than the insurer was willing to issue. John's insurance procedure told ...






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A life insurance policy does not have a war clause. If the insured is killed during a time of war, what will the beneficiary receive from the policy? ...






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Are insurance company underwriters allowed to discriminate?






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Which of the following is true regarding the insurance amount in a credit life insurance policy?






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Which of the following documents must be provided to the policyowner or applicant during policy replacement?






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Which of the following has the authority to issue a cease and desist order?






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A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a pers...






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Which of the following is true regarding a waiver of a surrender charge on an annuity contract?






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An employee quits her job where she has a balance of $10,000 in her qualified plan. The balance was paid out directly to the employee in order for her...






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A policyowner cancels his life policy but instructs the insurance company to transfer the cash value of his policy to an annuity. The nontaxable trans...






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For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured ...






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A prospective deferred annuity owner is concerned about what would happen if he surrendered the annuity before the annuitization period. The agent mos...






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In which of the following situations is it legal to limit coverage based on martial status?






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Who makes up the Medical Information Bureau?






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An insured stops making payments on a loan taken from his cash value policy. What will most likely happen?






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Which of the following statements is true concerning the Accidental Death Rider?






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Which of the following statements about a suicide clause in a life insurance policy is true?






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Which of the following is true regarding taxation of dividends in participating policies?






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Under the Fair Credit Reporting Act, if the consumer challenges the correctness of the information in his/her report, the reporting agency must






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The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?






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Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insura...






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Which of the following is NOT a goal of risk retention?






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The superintendent may examine books and records of all authorization insurers in Ohio. Who is responsible for paying for the exam?






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Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other wou...






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All of the following are rewuirements for life insurance illustrations except






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Julie pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. Julie has decided that she would rathe...






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Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premium must be paid






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If an agent fails to obtain an applicant's signature on the application, the agent must






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A deferred annuity is surrendered prior to annuitzation. Which of the following best describes the nonforfeiture value of the annuity?






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All of the following information about a customer must be used in determining annuity sutability except






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A universal life insurance policy has two types of interest rate that are called






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All of the following statements are true regarding installments for a fixed amount except






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An insolvent insurer is one who is unable to pay its obligations when they are due or has fewer assets than liabilities for a period of






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Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds?






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Admitted life insurance must pay interest, at a rate specified by life, on death benefits from the date of the insured's death, through how many ...