Life Insurance Policy MCQs

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The term used to describe the individual who is covered by the insurance is






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Which of the following is a risk?






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The application of the law of large numbers enables insurers to






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The estimation of future losses is more accurate when information is from






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which type of policy is designed to protect against the risk of living too long?






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which of the following is a type of insurance company owned by its shareholders?






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The A insurance company is incorporated in Alabama. While doing business in Texas, it is





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The A insurance company is incorporated in Mexico, While doing business in Texas, it is





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Self-insurance is an example of which method of handling risk?






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which of the following terms is used to denote insurance companies?






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a social device for spreading the chance of financial loss among a large number of people is definition of






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Katie becomes injured in a car accident caused when she took her eyes off the road to answer her phone. This is an example of






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an arrangement in which an insurer transfers part of the insurance risk to another insurance company is known as





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hoosier insurance is owned by the policyholders. hoosier insurance is






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Which of the following people represents several insurance companies but own the policy expirations?






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Which of the following can bind an insurance company by oral or written agreement?






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Pretext interviews are






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A customer is anyone






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The head of the state Department of Insurance usually called the Commissior is responsible for all of the following EXCEPT:






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The tendency for poor risks to seek and be covered by insurance more often than average risk is






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Robin is a 25 year old who drinks occasionally does not smoke, and has no known health problems. He probably would be classified by an insurer as






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Which of the following factors does NOT have an effect on insurance premium rates?






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To be certain that insurers have the money available to pay claims as they arise, they are required to maintain,






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Brenda decides that she wants to buy a policy. She fills out the application but does not pay the initial premium. What kind of receipt will Brenda re...






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Camille decides to buy a policy. She pays the first premium, and the producer issues a receipt and tells her that she is covered immediately, unless t...






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Which kinda of receipt is most commonly used in life insurance?






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Insurers sometimes require personal delivery so that






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If payment of a valid death claim is delayed, what is the usual reason?






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A policy may be issued in all of the following ways EXCEPT






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Term insurance provides






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Carl's insurance policy is designed to cover the mortgage on his house if he should die before paying it off. The policy is






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The least common of the following types of insurance is






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Pam owns a 1 year term policy. At the end of the year, she may purchase another identical policy without showing proof of insurability. Pam's pol...






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Whole life insurance policies provide all of the following EXCEPT:






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Zelda agrees to pay premiums on her policy every year for 20 years. After that, she will no longer have to pay premiums, but her insurance protection ...






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Jerry has a policy that pays dividends, what are used to purchase additional paid-up insurance to increase the face value of the policy. Jerry has






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Ashley has a policy that she must pay premiums on until she is 100 years old or until she dies. Ashley has






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Which of the following is NOT flexible in a universal life policy?






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Adam purchases a universal life policy. In his second year, he decides to pay a $1,000 premium. What happens to the cash value of his policy at this p...






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Martha has a universal life policy she purchased several years earlier. At that time, the death benefit in the policy was $100,000. Her cash value is ...






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Karen has a universal life policy she purchased several years earlier. At that time, the death benefit in the policy was $100,000. Her cash value is n...






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Assume that Martha and Karen are identical twins. Martha selects death benefit option A, and Karen selects death benefit option B. Who is probably pay...






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Which of the following is NOT required to be able to sell variable policies?






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Which of the following must be the case once a year for a variable policy to meet the federal definition of life insurance?






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Julia's variable policy deducts a certain percentage from the premiums as they are paid. What type of load does Julia's policy have?






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Laura collects insurance premiums every Friday at the home of several policyholders. Which type of policy do these policyholders probably have?






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George's brother, Jerry has a policy that will provide him an income if he is disabled from illness or injury, but only if he is confined to a ho...






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Which type of insurance policy is most common today?






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Sarah has a policy that will pay her family a monthly income until 2020 if she passes away before that time. Which type of policy does Sarah have?






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Tracy has a policy that provides perm life insurance on him, along with term insurance on his wife and children. Which type of policy is this?






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Which type of policy would not provide a tax-free death benefit under current laws?






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Between George and his brother, who has the more limited policy?






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Which of the following types of insurance requires a level premium and provides lifelong protection?






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Securities based whole life insurance is called






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Christy has a term policy that will allow her to switch over to a whole life policy at any time during the first half of the term without providing ev...






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Which of the following is an advantage of term insurance?






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Janice and Julie are identical twins who both work as teachers and live next door to each other. They each purchase a $75,000 whole life policy at the...






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Sally purchases $100,000 of participating whole life and $50,000 of term insurance. Over time, she intends to use the dividends from the whole life po...






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Gerald has a state insurance license but no other training or licenses. Gerald can sell any of the following EXCEPT:






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LaKita buys a policy that allows her to adjust the face amount, premium, and length of protection without having to complete a new application or have...






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Which type of policy is least likely to be sold today?






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Which type of policy combines whole life insurance with DECREASING term coverage?






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Which type of policy combines whole life insurance on one family memeber with term coverage on other family members?






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Dan and Dawn want to purchase a single policy that will provide a death benefit upon the death of either of them. The type of policy that might best f...






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Devon wants to purchase a policy that will cover his nephew until he turns 21. What type is this?






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Which of the following types of insurance is designed to provide life insurance protection for only a limited time?






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George has several policyowners at the factory set up on a plan that deducts the premium automatically from their bank accounts every month. Which typ...






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The main difference between traditional health insurance arrangements and HMOs is that






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Which of the following types of health care insurers is an example of a producers' cooperative?






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The Hoosier HMO contracts with an independent medical group that specializes in a variety of medical services in order to provide those services to HM...






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The Provider's Choice HMO was started by a group of individual physicians, and each physician operates out of his or her own office. The physicia...






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Gwen's HMO requires that she receive health care services from a specified, limited number of health care providers chosen by the HMO. Gwen'...






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Best Cleaners has a health plan that provides its employees with a high-deductible medical indemnity plan and an account funded by the business, which...






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Bob's Balloons has a plan in which its employees can select benefits from a variety of coverage options based on individual and family needs. The...






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The Garage company funds its own claims but uses another company to make sure the plan is run correctly, acting as a liaison between the insurer and t...






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Which of the following individuals would probably qualify for Social Security disability benefits?






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Under workers' compensation, the permanent total disability benefit, while subject to minimum and maximum dollar amounts, is generally






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Under workers' compensation, individuals with partial disabilities who are able to perform some work are eligible to receive.






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No loss/no gain legislation requires a replacing policy to






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According to the entire contract provision, the entire contract includes all of the following EXCEPT






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In most states, the policy becomes incontestable after






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All insurance policies may be canceled at any time by






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Normally, written proofs of loss must be furnished within how many days after the loss?






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If there is no beneficiary listed on a policy, benefits will be paid to






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When Betty purchased her insurance policy, her age was recorded as 32 when she was actually 34. Assuming her policy includes the misstatement of age p...






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The optional provisions that deal with multiple insurance policies of the same type on a single insured deal with the problem of






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If a policyholder has two or more policies from different companies that cover the same expenses and the insurers were not notified that the other cov...






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if a policy includes the provision on conformity with state statutes, and the state changes the law to be in conflict with another provision of the po...






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A pro rata return is one in which the insurer returns






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The grace-period varies according to






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A reinstated policy will cover






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if an insured is disable for at least 2 years, the insurer may require proof of continuance of disability every