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1. Jim purchased a $200,000 level term-to-age-65 life insurance policy when he was 35 years old. If Jim dies at age 50, what death benefit would be paid by this policy?
A) $150,000
B) $100,000
C) $50,000
D) $200,000
2. When a life insurance or annuity replacement policy is sold, the policyowner has a right to return the policy for a full refund of premium within
A) 7 days.
B) 20 days.
C) 14 days.
D) 3 days.
3. An example of a false financial statement is which one of the following?
A) An insurance producer published an untrue newspaper advertisement about another producer.
B) An insurance producer posts information about a profitable insurer going bankrupt.
C) An insurance producer mails out hateful postcards about a local insurer.
D) An insurance producer hands out flyers about another producer's criminal past.
4. If a primary beneficiary dies, life insurance benefits are then paid to
A) no one.
B) the tertiary beneficiaries.
C) the sub-primary beneficiaries.
D) the contingent beneficiaries.
5. Which of the following BEST describes a waiver of premium clause in a typical disability policy?
A) This clause eliminates any premium being paid for the lifetime of the insured individual.
B) The waiver of premium benefit pays the policy premium during a disability claim.
C) This clause generally begins immediately with the doctor stating that the insured person is completely disabled.
D) The monthly benefit under the policy is reduced to offset the premium that is no longer being paid.
Solutions:
Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: B |
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