Download TN Life Insurance Exam Review (Questions and Answers) Latest Update 2024 (135 Questions) and more Exams Nursing in PDF only on Docsity!
Latest Update 2024 (135 Questions)
Term life insurance shall never provide: a. death protection b. low premiums c. temporary protection d. a living benefit - Correct Answer ✅d. a living benefit The premium paid on whole life would be ___________ at the age 25 than age 75: a. more b. less c. same d. twice the rate - Correct Answer ✅c. same If the insured lives to age 100 on a whole life coverage, the cash value would be ___________ the face amount:
Latest Update 2024 (135 Questions)
a. less than b. equal to c. more than d. double - Correct Answer ✅b. equal to The premium on limited payment whole life vs continuous pay whole life would be: a. less b. same c. more d. identical - Correct Answer ✅c. more The cash value on limited payment whole life vs. continuous pay whole life would be: a. less b. same
Latest Update 2024 (135 Questions)
a. raise the face amount b. lower the face amount c. raise the premium d. lower the premium - Correct Answer ✅a. raise the face amount A permanent life policy allows policyholders to tie accumulation values to a stock market index. (i.e., S&P 500): a. variable life b. indexed life c. term life d. variable universal life - Correct Answer ✅b. indexed life Third party ownership (not the owner) policy is owned by: a. co-workers b. insured is owner
Latest Update 2024 (135 Questions)
c. corporation or spouse d. owned by policyholders - Correct Answer ✅c. corporation or spouse On a joint life last survivorship policy who would collect: a. beneficiaries of the first to die b. beneficiaries of the second to die c. 50% paid to each of the above d. beneficiaries of either of the first to die - Correct Answer ✅b. beneficiaries of the second to die This provision would waive the breadwinner's premium on their policy should he/she become disabled for 90 days: a. waiver of premium b. juvenile c. payor benefit d. disability rider - Correct Answer ✅a. waiver of premium
Latest Update 2024 (135 Questions)
a. adjustable life b. universal life c. variable life d. variable universal life - Correct Answer ✅b. universal life This product was the first to take advantage of the equity markets as a hedge against inflation: a. adjustable life b. universal life c. variable life d. limited pay - Correct Answer ✅c. variable life This rider allows the insured to purchase additional amounts of insurance between ages 25 and 40 without proof of insurability: a. return of premium
Latest Update 2024 (135 Questions)
b. guaranteed insurability c. cost of living d. term - Correct Answer ✅b. guaranteed insurability Group Life Insurance: a. does not allow for conversion to individual policies b. is never written to include dependents c. is generally temporary coverage d. is automatically covered when an individual leaves a group - Correct Answer ✅c. is generally temporary coverage Designed to protect against living too long and provides lifetime income: a. term policy b. whole life c. universal life d. annuities - Correct Answer ✅d. annuities
Latest Update 2024 (135 Questions)
a. return of premium b. renewable c. convertible d. guaranteed insurability - Correct Answer ✅d. guaranteed insurability What would be the face amount on an extended term nonforfeiture option: a. less than original policy b. more than original policy c. same as original policy d. twice the amount - Correct Answer ✅c. same as original policy What would be the face amount on a paid up for nonforfeiture option: a. less than the original policy b. more than the original policy c. same as original policy d. twice the amount - Correct Answer ✅a. less than the original policy
Latest Update 2024 (135 Questions)
If a death claim is made against a life policy, the loan plus any accrued interest: a. would not reduce the payment b. only the loan would reduce the payment c. both loan and interest would be subtracted from payment d. only interest accrued from the date of the loan is subtracted from the face amount - Correct Answer ✅c. both loan and interest would be subtracted from payment Life income with a period certain settlement option would provide ___________ income a month than the life income only settlement option: a. less b. same c. more d. $100,000 - Correct Answer ✅a. less
Latest Update 2024 (135 Questions)
a. have to prove insurability b. may have to take a physical c. is not required to prove insurability d. is not eligible - Correct Answer ✅c. is not required to prove insurability Which is not true about the term renewable: a. have to prove insurability b. put back into force a policy that has lapsed c. pay higher premium d. restricts who is eligible - Correct Answer ✅c. pay higher premium Annuities are all of the following except: a. create an estate at the death of the insured b. provide a lifetime retirement income to the annuitant c. "upside down" life insurance
Latest Update 2024 (135 Questions)
d. liquidate (pay out) large sums of money - Correct Answer ✅a. create an estate at the death of the insured The following are characteristics of variable annuities except: a. investment risk assumed by insured b. accumulation value expressed in units instead of dollars c. variable payments will be made at payout d. guaranteed interest rate (nothing is guaranteed about annuities, unless fixed) - Correct Answer ✅d. guaranteed interest rate (nothing is guaranteed about annuities, unless fixed) A life annuity will: a. pay the beneficiary at the death of the annuitant in a lump sum b. no more payments after the annuitant dies c. pays the remaining payments to the beneficiary d. pays the annuitant for a set number of years - Correct Answer ✅b. no more payments after the annuitant dies
Latest Update 2024 (135 Questions)
a. single premium immediate annuity b. single premium deferred annuity c. single premium fixed annuity d. single premium variable annuity - Correct Answer ✅b. single premium deferred annuity Kim brought an annuity to help with her retirement. She used her Christmas bonus check to fund it. If she puts off until next month to get first payment: a. deferred single premium annuity b. immediate single premiums annuity c. deferred variable premium annuity d. deferred single premium fixed annuity - Correct Answer ✅b. immediate single premiums annuity If a life insurance risk is rejected based on information in an investigative report the applicant:
Latest Update 2024 (135 Questions)
a. must be called first by the reporting company b. must be given the name and address of the reporting company c. must be given an explanation in writing prior to denial d. must give the applicant 10 days to challenge the rejection - Correct Answer ✅b. must be given the name and address of the reporting company On the graded death benefit of a substandard life risk, the insured pays the standard premium for a $20,000 policy but would probably have this amount of coverage for the face amount: a. $15, b. $20, c. $25, d. 50% of the face amount - Correct Answer ✅a. $15, Which of the following is not a factor used to determine life insurance rates: a. interest b. mortality
Latest Update 2024 (135 Questions)
Third-party ownership of a policy means: a. the policy is owned by the insured b. the insured did not pay the premiums but is the owner of the policy c. the insured does not own the policy d. insured has split ownership in 3 ways - Correct Answer ✅c. the insured does not own the policy An underwriter's purpose is to protect insurance company: a. from doctor's and hospitals overcharging patients b. from adverse selection c. from standard risks d. from preferred risks - Correct Answer ✅b. from adverse selection Life underwriting is generally ___________ for individual than group policies:
Latest Update 2024 (135 Questions)
a. less restrictive b. about the same c. more restrictive d. less paperwork - Correct Answer ✅c. more restrictive When initial premium is not paid, the contract is: a. due to expire after the grace period b. valid only for 30 days c. invalid d. valid conditional receipt issued - Correct Answer ✅c. invalid A conditional receipt means for a substandard risk: a. the policy is effective after the free look period b. the coverage becomes effective on the date of the application c. the insurer will notify applicant of the effective date which would normally be the date received in home office
