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Terms in this set (50)

Increase the present loan by the interest
If the interest on a policy loan is not paid at the policy anniversary, the insurance company may
a. The age of the applicant and the proposed sum to be insured
The extent of medical evidence required is determined by
to convey to the company desire of the applicant to obtain insurance
Indicate which of the following is not a function of an application for life insurance policy
Estimate future death rates among members of a given group
the insurance companies make use of the laws of probability in order to
cash is required for all premiums paid in the grace period
which of the following statements regarding insurance premiums is false
Provide life insurance protection for only the period of time specified in the policy contract
Endowment life insurance and term life insurance are similar in that both plans
Discontinues premium payments for a whole life or endowment policy
a non-forteiture option would ordinarily be selected at the time a policy owner
c. Pressure selling
the conservation of a life insurance policy is dependent on all the following except
More insurance protection for the same annual premiums outlay
Purchasing a continuous- premium, whole life policy rather than a limited-payment whole life policy gives the policy owner the advantage of
Extended term insurance
Name the provision in a permanent life insurance policy under which premiums are discontinued, full insurance will be maintained for a specified period:
Riders
The basic coverage provided by life insurance policies may be supplemented by separate provisions that provide coverages for additional amounts or of a different nature. Collectively these provisions are known as
The insured can add a third beneficiary at any time
The insured named a primary and secondary revocable beneficiary for P20,000 policy. Which of the following is correct?
Counselor selling Total needs selling
An agent who determines a prospect's complete financial requirements preparatory to offering him a policy using the correct approach known as
b. Discontinue premium payments
In a policy where an irrevocable beneficiary has been designated the insured, without the beneficiary's permission, can
...
Which of the following statements is false?
a. An individual on the life of his mistress
Which of the following does not have a legitimate insurable interest?
d. To provide additional income to the government through license fees
Which of the following is the least important reason for requiring that insurance agents be licensed?
b. Premiums shall increase everytime the policy is renewed
A yearly renewable term life insurance policy generally specifies that
a. Increase the present load by the interest
If the interest on a policy loan is not paid at the policy anniversarry the insurance company may
d. Prevents the company from denying a claim after the policy has been in force for 2 years
The incontestability clause
b. Any guaranteed policy values will belong to the policy owner even if premium payments are discontinued
Non-forfeiture provisions are included in whole life and endownment policies to assure the policy owner that certain minimum policy benefits shall remain with him even under certain changed conditions. Non-forfeiture values guarantee to the policy owner that
a. Renew the coverage based on a higher premium
In the case of renewable term insurance, the policy owner may
c. The face amount adjusted for misstatement of age
When you bought an insurance policy on your wife's life, you were 27 and she was 26, but you stated that you were 26 and she was 27. Five years later your wife died. The insurer will pay
d. Insurance protection will be limited to a specified period
Both endownment and term life insurance policies provide that
d. Government tax records
All of the following are sources of information to an insurance company pertaining to the insurability of an applicant except
a. Company discovers at anytime that the policy owner was actually a minor at the time of application
An insurance company generally has the right to rescind a life insurance policy if
c. Relates to the insurability of the applicant
In most life insurance applications, the largest amount of information requested is data which
d. The premiums cease and protection continues with a reduced amount of coverage
In the event that a policy elects the paid-up insurance option
b. Absolute assignee
A father has his present life insurance payable to his estate and because he has now retired he wants to pass the policy onto his son who will assume the premium payments. Which of the following will he have to appoint his son to achieve his desire and protect the son from the Estate Tax Liability?
c. Filed amount, fixed period, life income, interest on deposit
What are the basic settlement options?
c. Interest option
Not withstanding possible legal impediments, if the owner of an endownment at age 65 policy tells you that as the maturity of the policy he wants to provide his church with a monthly donation for as long as the church exists. Which option do you recommend?
c. Universal life
A policy which permits the policy holder to vary the level of premium or the sum insured, and has its cash values dependent upon the investment performance and the level of premium paid is known as ___________ policy.
b. The insured has to die while being disabled
Which of the following statements about "Disability Waiver of Premium Rider" is false?
d. Valid unless the insurer can prove fraud
If the applicant for life insurance fails to disclose or misrepresents a material fact, the contract is
d. Immediately provides interim insurance that remains in effect until the policy is issued or the application is declined
A man applied for a PHP20,000 whole life policy and paid the full initial premium to the soliciting agent. The agent issued for a binding receipt. Under such a receipt, the insurance company
a. Affect both cash and loan values of the policy
Paid-up additions:
b. Presents satisfactory evidence of insurability
The company will allow a policy change from a higher premium to a lower premium provided the insured
c. A supplemental term rider
The total life coverage of permanent basic policy can be greatly increased through the yse of
a. Payment of the proceeds for the life of the insured
The settlement options provisions may provide all of the following except:
b. Decide conlicting claims on the same insurance proceeds
In certain situations a company may file interpleader acions eith a Court of Law. This remedy is used to
False
An endownment at age 65 policy with a premium payable for a limited period of 20 years pays the full amount after 20 years
False
In most life insurance applications, the largest amount of information requested is data which identifies the applicant
True
A policy is not rendered void by the reason of misstatement of assured's death
False
In a case where the premium has not been paid and the cash values have been exhausted, the policy can still avail of the grace period
True
According to the law of large numbers, events which happen seemingly by chance will actually be bound to follow a predictable pattern, if enough such happenings are observed.
True
Anti-selection occurs when persons in poor health wish to buy insurance
False
A policy is still in force for the full face amount and will remain in force for a further period of four years and 118 days, without the payment of any premiums has availed of paid up insurance option.
True
In the case of misstatement of age, the amount of insurance is adjusted to the amount which the premium paid at the correct age would have purchased
True
A policy that provided guaranteed cash values plus annual distributions and pays the insured after a specified time is known as a participating endownment.
FALSE
In a group insurance it is assumed that every member of the group is insurable, provided that every member of the group is working a minimum number of (usually 50 hours) each week.
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