A fixed amount added to the premium of a given policy regardless of policy size is known

33290 Correct
as

policy fee

policy reserves

policy values

extra premium

33441 A clean-up fund would be used to provide for all the following except Incorrect

Burial expenses

Outstanding personal loans

Life income for the widow

Last illness expenses

A father enters into a life insurance contract on behalf of his child. In this case, the father
33526 Incorrect
is the

insured

beneficiary

insurer

applicant-owner

33620 A hazardous occupation could be defined Incorrect

an occupation the duties of which expose the insured to degree of danger of sustaining injury

an occupation in unhealthy working conditions exposing the insured to elements which can
cause sickness

an occupation which exposes the insured to social hazards

All of the above

A housewife without gainful employment applies for a P3 million life coverage. Which of
33705 Correct
the following should the agent do?

Be grateful

Examine the adequacy of the husband’s insurance coverage

Suggest she double the amount

Tell her she has no need for it

33935 A life insurance company earns income from two main sources Incorrect
 premium income and investment income

mortgage income and premium income

dividend income and interest income

mortgage income and dividend income

33446 A life insurance program is defined below as Correct

A computer illustration of cash values and other policy details

An agency training schedule

A hardworking agent’s typical working day

A planned insurance estate

33461 A man with moderate means can have maximum protection possible through Correct

20 Year Endowment

Limited Pay Life

Term Insurance

Whole Life Insurance

A participating plan entitles the policyowner to receive a return of excess premiums.

33486 Correct
Such is termed as

endowments

dividends

cash values

cash surrender value

33664 A person has insurable interest in the life of Correct

a. his child or grandchild

b. any person upon whom he is wholly or in part dependent on, or from whom he is receiving support
or education

c. any person in whom he has pecuniary interest

All of the above

A person wanting a greater coverage for the least amount of premium has an option of
33556 Incorrect
attaching what rider in his permanent life policy?

a waiver of premium
 term insurance rider

guaranteed insurability rider

accidental death rider

33436 A person’s human economic value is defined as the Correct

Total value of his physical assets.

Total value of assets and any future earnings derived therefore.

Total value of the individual’s tax contribution to the national economy.

None of the above

A policy that may provide for an increase or decrease in the sum insured and/or level
33915 premium payment and has the savings portion tied to a common stock fund with no Incorrect
guaranteed values

participating whole life

participating endowment

annuity

universal life

33571 A policy with a minor as the proposed insured is called Correct

rated policy

juvenile policy

regular policy

substandard policy

A policyholder may obtain money from the insurance company and still remain insured
33735 Incorrect
by

surrendering the policy for its cash value

discontinuing payment of premium for some period

taking a policy loan

taking the extended insurance option

33615 A risk is considered substandard based on any or all of the following criteria Correct

death, occupation and moral character

pation, moral character and family health history

 income, educational attainment and occupation

death, income and educational background

33451 A single premium policy means a policy Incorrect

requiring only a single premium each year

under which only one premium payment is required

only available to single individuals

on which no more than one premium can be paid in advance

A term insurance which allows the policy owners to convert it to a permanent insurance
33501 Correct
within a specified period without evidence of insurability contains ___________ feature.

convertibility

renewability

dividend option

both a & b

33506 A Term policy only offers Incorrect

cash values

protection

savings

dividends

33521 A Term rider is Correct

a term policy with a waiver of premium

another name for a convertible term policy

a renewable term policy

a term insurance added to a permanent plan

A widow, the beneficiary of a life policy tells you that she wants all the money that she
33881 Correct
can get now. Which of the following do you recommend?

interest option

fixed income option

fixed period option

 life annuity option

None of the above

33677 According to insurance law, a common-law spouse cannot be designated a beneficiary Incorrect

since there is no benefit of marriage in the relationship

if his/her partner is still living and the previous marriage has not been legally dissolved

the common-law relationship is an immoral relationship

All of the above

33639 All of the following statements regarding a life insurance application are correct, except Incorrect

it must be signed by the applicant

usually it will be made a part of the policy contract

misstatements of material facts could void the policy during contestable period

statements made on the applications are warranties

33866 An “immediate annuity” is Incorrect

a kind of regular annual savings arrangement to provide a pension for life with no life coverage

a single premium whole life policy

an arrangement where a person can pay a life insurance company a sum of money in return for a
pension for life

an on-time payment for a pension to start a pre-determined date.

33710 All of the following will be practicable to become beneficiaries except Correct

children by former marriage

brothers and sisters

someone who owes you money

someone to whom you owe money

33871 An “immediate deferred annuity” is Incorrect

a kind of regular annual savings arrangement to provide a pension for life with no life
coverage

a single premium whole life policy

 an arrangement where a person can pay a life insurance company a sum of money in return for a
pension for life

an on-time payment for a pension to start a pre-determined date

33876 An “retirement annuity” is Incorrect

a kind of regular annual savings arrangement to provide a pension for life with no life coverage

a single premium whole life policy

an arrangement where a person can pay a life insurance company a sum of money in return
for a pension for life

an on-time payment for a pension to start a pre-determined date

An agent is filling up the Agent’s Confidential Report. What information must he put in
33634 Incorrect
his report?

information about insured’s standing in the community

information about insured’s finances

all information he knows which are material to the application for insurance

a and b only

34023 An agent is prohibited from doing all of the following except Incorrect

alter an application without the applicant’s prior written approval

convince a prospective client to cancel his policy in one insurance company in order to buy a policy in
the insurance company represented by the agent

refund some of his commission to his client

make complete comparisons of policies he sells and those offered by competing insurance
companies

33833 An annuity plan Correct

offers life insurance protection

offers the waiver of premium benefit

is the same as endowment plan

is a purchase of income

An automatic premium loan differs from the other policy loans in that an automatic
33754 Correct
premium loan

need not be repaid by the policyowner

 must be repaid during the policy year in which it is granted

goes into effect requiring no separate action from the policyowner

involves higher interest payments because of the greater cost of administration

An individual at age 35 purchases a policy under which he will in 20 years receive the
33476 Incorrect
face amount of the policy himself, if he is still alive at that date. This policy is obviously a

20 Year Endowment

20 Pay Life

20 Year Term

None of the above

33989 An insurance agent’s license can be revoked for Correct

fraudulent practices

violation of any provision of the Insurance Code

misrepresentation in the application for license

All of the above

33456 An insurance plan which offers both protection and savings is called Correct

Temporary plan

Permanent plan

Participating plan

Non-participating plan

An optional rider which can be attached to a policy stopping further premium payments
33531 Incorrect
in the event of disability is called

policyholder protection clause

accidental death and dismemberment

waiver of premium

total disability monthly income

33591 Anti-selection occurs Incorrect

when an agent thinks only of his own interest and not of his policyowners

when you purchase bad stocks with expectation that they will improve
 when the insurance company accepts more than as usual share of share of poor risk

when persons in poor health wish to buy insurance

33668 Anybody can be designated a beneficiary except Incorrect

a creditor

minors

those expressly prohibited by law to receive donations

All of the above

33886 Benefits payable under health insurance policies cover Incorrect

accidental death and dismemberment benefits

expense reimbursement benefits

disability income benefits

All of the above

Choose the incorrect statement The entire contract between the policyowner and the
33681 Incorrect
insurance company include

the application and the policy

Representation

any verbal statement made by the agent to the applicant

any document attached to the policy when issued

any subsequent written amendments to the contract

33546 Disability benefits are not paid Incorrect

For self-inflicted injuries

If there is a loan against the policy

If all the policy dividends have been withdrawn

If disability resulted from sickness only

« Back

33649 For a contract to be legal and binding Correct

 parties to be contract must be members of the bar

parties to the contract must be legally competent

parties to the contract must be above 21

parties to the contract must possess blood relationship

33654 For life insurance coverage to be valid, insurance interest must exist Correct

only at the inception of the policy

only at the time of the loan

throughout the entire lifetime of the policy

both at the time of the policy issue and at the time of the loan but not necessarily throughout the
lifetime of the policy

33536 For the waiver of premium to be effective Incorrect

disability must be total

disability must be permanent

disability must be total and permanent

either total and permanent

33910 Group life insurance cover Incorrect

Death provided it is during working hours and in the place of employment

Death of employees regardless of cause except suicide during the first year (sometimes two years)

Accidental Death only

None of the above

33905 Group Yearly Renewable Term Incorrect

Requires medical every year for each employee

is the most expensive form of group insurance available

is the lowest cost life plan available

excludes claims arising from deaths that are not work related

If a loan is taken on a participating policy, dividends for that policy while there is a loan
33778 Incorrect
against the policy will be

suspended
 paid a reduced rate

unaffected

increased

33763 If a policy did not contain the name of a beneficiary, the beneficiary will be Correct

the wife

the children

the insured’s brothers and sisters

the insured’s estate

33541 If a policy with the accidental death rider becomes paid up Incorrect

the accidental death rider ceases

the face amount of the policy is reduced

premiums on the basic policy stop but the rider premium continues

none of the above

33768 If a policyowner does not pay a premium on the due date, the policy will immediately Incorrect

lapse

be converted to a paid up policy for a lesser amount

go into automatic premium loan

continue in full force for a period of grace

If a policyowner whose wife is the irrevocable beneficiary wishes to cash in his policy, he
33773 Incorrect
must

tell his wife what he is going to do

first take a loan on the policy

have the check issued in the name of his wife

have the wife’s consent

If an insured is disabled and his life insurance policy is being continued in force through
33566 Incorrect
the waiver of premium, the dividends of the policy would

cease

continue at reduced rate

 continue as if the owner is paying the premium

continue but they would be applied toward premiums being waived

If the insured dies during the grace period of an unpaid life insurance policy, the amount
33745 Incorrect
payable to the beneficiary is usually the

total premiums paid plus interest

cash surrender value of the policy minus the unpaid premiums

the face amount of the policy minus the unpaid premiums

full face amount

If the policy did not contain the name of the beneficiary, proceeds will be paid to the
33687 Incorrect
insured’s

state

wife

children

estate

33481 In a 20 Life Policy Correct

protection is until age 100, payment of premium is for 20 years

protection is until age 100, payment of premiums is until age 100

protection is for 20 years, payment of premiums is for 20 years

protection is for 20 years, payment of premiums is until age 100

33601 In an application, the information that must be disclosed include Incorrect

only his date and place of birth

only his family history

every fact in his knowledge that is materials to the insurance

only information he wants the agent to know

In certain situations, a company may file an interpleader action with a Court of Law. This
33692 Incorrect
remedy is used to

resolve the question of insurable interest

determine if the cause of the insured’s death was an excluded risk

decide conflicting claims on the same insurance proceeds

 recommend the best settlement option for the beneficiary

33596 In insurance, risk means Correct

chances of you being paid by the company

hazard on people’s lives

chances of the beneficiary being paid

none of the above

33610 In insurance, risks are classified as Incorrect

unacceptable and acceptable

regular and irregular

standard, substandard and declined

complete and incomplete

In the event an employee leaves the company in which he is a member of its group
33895 Correct
insurance policy, his group coverage can be changed to an individual policy using the

policy exchange facility

conversion privilege

change of plan provisional

policy change form

33798 In the event that a policy elects the paid up insurance option Incorrect

the premium stops and the policy continues for the full face amount until age 65

the premium cease and protection continues with a reduced amount of coverage

the insurance continues at a reduced amount and with a reduced premium

the policy will automatically terminate