Insurance Exam Practice Exam: Questions and Answers 2024, Exams of Economics

Download Insurance Exam Practice Exam: Questions and Answers 2024 and more Exams Economics in PDF only on Docsity! Insurance Exam Practice Exam: Questions and Answers 2024 Pure or straight life ✔ Which of the following annuity benefit payment options would generate the highest monthly payments to the contract owner upon annuitization? Paid-up additions 1-year term Cash ✔ All of the following are dividend options on a participating life insurance policy: Insured ✔ The person upon whose life an annuity is based is known as the: Reduced paid-up ✔ When a policyowner uses the cash value in their policy to buy a lesser amount of permanent life insurance, they have exercised which nonforfeiture option: Interest only ✔ Which of the following life insurance settlement options enables the beneficiary to conserve the proceeds of a life insurance policy? The account value ✔ In the case of a variable annuity sold to a senior citizen in this state for which the owner has directed that the premium be invested in the mutual funds underlying the contract during the 30-day cancellation period, cancellation during that period entitles the owner to a refund of: They are purchased by those who are worried about outliving their savings. They are not suitable as short term investments. They may be used as a life insurance settlement option. ✔ All of the following are true regarding annuities Group (Life Insruance) ✔ Which of the following would not be considered to be ordinary life insurance? They are not guaranteed They are legally defined as a return of premium and are not taxable They are paid out of the insurer's accumulated surplus ✔ All of the following are true regarding dividends paid by a mutual life insurance company Renewable ✔ Which type of term life insurance has a level face amount but a premium that increases each year as the insured gets older? The amount and frequency of future losses are unknown ✔ The transfer of risk to an insurance company is an effective risk management technique when: Change the beneficiary Assign or transfer ownership in the policy Take a loan ✔ The owner of a life insurance policy may do all of the following The employer is the policyowner and the beneficiary Death benefits are payable to the employer tax free The employee is the insured ✔ All of the following are true regarding key person life insurance: A buy/sell agreement ✔ If a corporation and a shareholder enter into an agreement that requires the corporation to buy the shareholder's shares upon his or her death, they have entered into: Extended term Cash surrender Reduced paid-up ✔ All of following are required nonforfeiture options or provisions on a cash value life insurance policy: Large numbers ✔ The greater the number of similar exposure units insured, the easier it will be to predict future claims based upon the law of: Modified, ordinary, limited pay, single premium ✔ List in order from the lowest annual premium to the highest: Military