Life Insurance Basics MCQs

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What is the purpose of a conditional receipt






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What does "liquidity" refer to in a life insurance policy






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Which of the following statements regarding HIV testing for life insurance purposes is NOT true






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Which of the following applicants could the insurer charge a higher rate of premium and not violate regulations regarding unfair discrimination






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Which of the following types of insurance policies would perform the function of cash accumulation






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Which of the following statements concerning buy-sell agreements is true






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If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant






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Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decisio...






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Which of the following is usually true of a participating life insurance policy






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Why should the producer personally deliver the policy when the first premium has already been paid






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How often may a life settlement provider contract an insured regarding the insured's health status if the insured's life expectancy is more ...






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All of the following are factors that an underwriter could use to select and classify risk EXCEPT






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Which of the following is the best reason to purchase life insurance rather than annuities






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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 woul...






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Which of the following statements is NOT true concerning insurable interest as it applies to life insurance






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Which of the following best describes gross annual premium






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An insurer invest the money it receives from premiums paid by its insureds. Which of the following is TRUE regarding the interest earned on these inve...






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All of the following are duties and responsibilities of producers at the time of application EXCEPT






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Which of the following best describes the MIB






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The mode of premium payment






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Are insurance company underwriters allowed to discriminate






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When an applicant purchased a life insurance policy, the agent dated the application 4 months prior. When asked by the applicant, the agent said he wa...






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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 documents delivered to the policyowner includes information about premium amounts, cash values, surrender values and death bene...






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When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called a(n)






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Which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement,...






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If an insured changes his payment plan from monthly to annually, what happens to the total premium






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In the underwriting process, it was determined that the applicant for life insurance is in poor health and has some dangerous habits. Which of the fol...






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Why should the producer personally deliver the policy when the first premium has already been paid






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In a life settlement contract, whom does the life settlement broker represent






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What is the purpose of key person insurance






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Which of the following would be exempt from the policy replacement regulations for insurers






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






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For what reason may a life insurance producer backdate a life insurance policy






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All of the following are characteristics of group life insurance EXCEPT






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If an applicant for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about ...






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Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value






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Which is the primary source of information used for insurance underwriting






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If an applicant for a life insurance policy is found to be a substandard risk, the insurance company is most likely to






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The purpose of the Life and Health Insurance Guaranty Association is to






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Which of the following premium modes would result in the highest annual cost for an insurance policy






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All of the following are personal uses of life insurance EXCEPT






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An applicant wants to buy a policy that has a cash value element. Which type should she buy






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When is the earliest a policy may go into effect






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Which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical histo...






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Upon policy delivery, the producer may be required to obtain any of the following EXCEPT






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Which is generally true regarding insureds who have been classified as preferred risks






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Who may complete a paramedical report






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All insurance companies admitted to sell life and/or health insurance contracts in Oregon must, as a condition to maintain their certificate of author...






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Which of the following is an example of liquidity in a life insurance contract






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All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT






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Another name for a substandard risk classification is






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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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In the Executive Bonus plan, who is the owner of the policy, and who pays the premium






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An individual wants to purchase a life insurance policy. His agent asks if the transaction will involve replacing any existing life insurance policies...






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If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT






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Which of the following individuals must have insurable interest in the insured