Insurance Test, Part 4

The accidental death benefit rider is also known as

Double indemnity

Which policy pays the face amount if the insured survives to the end of a certain period

Endowment insurance

Common life insurance policy riders include all of the following except

Extended term

An insurer’s request for an attending physician’s report must be accompanied by a copy of the

Signed authorization

Creditors have rights to life insurance policy proceeds when the beneficiary if the

Insured’s estate

Which policy allows the insured to choose where the assets backing the cash value are invested

Variable life

A beneficiary wants to let the death benefit accumulate and receive only the monthly investment proceeds. Which settlement option should be chosen

Interest option

Which policy provision protects the policy owner from unintentional lapse of the contest

Grace period

Underwriters classify insurance risks are any of the following except

Dividend risks

All of the following are benefits of insurance except it

Eliminates fraudulent losses

A contract in which one party promises to indemnify another against loss that arises from an unknown event is

An insurance policy

When must insurance records of insurance agents and brokers be made available to the Insurance Commissioner

At all times

Any situation that presents the possibility of a loss is known as

A loss exposure

What is used to determine the amount of an annuity distribution that is exempt from taxation

The exclusion ratio

How can partners guarantee a market for their share of the business in the event of death

Buy-sell agreements

Your client has just bought a new home which he has financed with a $150,000, 7.5% interest, 30 year bank loan. He’d like to be sure if he dies the unpaid balance of the mortgage would be paid. He wants a policy that covers all of the mortgage balance anytime during the life of the mortgage. Which policy is designed to meet this need?

Decreasing term policy

Which policy covering two or more individuals pays the face amount only when the first person dies

Joint life policy

An insured replaces an existing annuity with a new one and must pay a surrender charge for cancelling the existing annuity. The new policy holds no greater financial benefits to the insured than the existing contract. This is an example of

An unnecessary replacement

Which policy provision allows an insured to continue coverage under a previously lapsed policy

The reinstatement provision

Which of the following is a characteristic of nonqualified annuities

Tax-deferred earnings

Which of the following contracts provides benefits that fluctuate automatically with investment results?

Variable life insurance

A contract that restores an injured party to the condition that was present before the loss is

An indemnity agreement

Which type of insurer is owned by its policyholders

A mutual insurer

The primary objectives of insurance regulation include all of the following except

Interpret policy provisions

What is required when an application reveals conditions that require more info

Attending physician’s statement

Under which group term life provision does an insurer make payments to the guardian of a beneficiary who is a minor

Facility of payment

A life insurance policy’s waver of premium takes effect if an insured

Becomes totally disabled

Under which policy provisions can a policy be surrendered for its net cash value

No forfeiture options

Life insurers must include all of the following in their financial statements except

Policy summary description

What rule is used to determine the importance of a representation

The materiality of concealment