Documente Academic
Documente Profesional
Documente Cultură
Direction: Choose the best answer. Indicate your answer on an answer sheet by writing
the letter.
a. No cash value is available to the policy owner during the term of the policy
b. Renewal and conversion privileges are available
c. A benefit will be paid at the end of the period of coverage if the person is
then alive
d. Insurance protection will be limited to a specified period
3. A father has his present life insurance payable to his estate and because he has
now retired he wants to pass the policy on to 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 Estate Tax Liability?
6. An insurance company generally has the right to rescind a life insurance policy
if
a. Company discovers at any time that the policy owner was actually a minor
at the time of application
b. Insured person intentionally kills himself during the suicide exclusion
period specified in the policy
c. Insured person is killed in military action during the contestable period of
the policy
d. Company discovers during the contestable period that the application
contains a material statement.
7. Which of the following is the least important reason for requiring that insurance
agents be licensed?
8. In the event that a policy owner elects the paid-up insurance option
a. The premiums stop and the policy continues for the full face amount
until age 65
b. The insurance continues at a reduced amount and with a reduced premium
c. The policy will automatically terminate
d. The premiums cease and protection continues with a reduced amount of
Coverage
9. The company will allow a policy change from a higher premium to a lower
premium provided the insured
10. A policy which permits the policyholder to vary the level of premiums, the sum
insured and has its cash values dependent upon the investment performance and
the level of premium paid is known as __________ policy
a. Participating whole life policy
b. Participating endowment
c. Universal life
d. None of the above
11. Which of the following statements about “ Disability Waiver of Premium Rider”
is false?
12. In most life insurance applications, the largest amount of information requested
is data which
14. The total life coverage of a permanent basic policy can be greatly increased
through the use of
15. Life insurance companies make use of the laws of probability in order to
16. In the case of renewable term insurance, the policy owner may
17. A man applied for a Ps. 20,000 whole life policy and paid the full initial premium
to the soliciting agent. The agent issued a binding receipt. Under such a receipt,
the insurance company
18. Endowment life insurance and term life insurance are similar in that both plans
a. Counselor selling
b. Total needs selling
c. Planned selling
d. Multiple products selling
20. Name the provision in a permanent life insurance policy under which premiums
are discontinued, full insurance will be maintained for a specified period:
23. The conservation of a life insurance policy is dependent on all the following
except
25. If the applicant for life insurance fails to disclose or misrepresents material fact,
the contract is
26. The settlement options provision may provide all of the following except:
29. In certain situations a company may file interpleader actions with a Court of Law
This remedy is used to
31. Which of the following does not have a legitimate insurable interest?
a. riders
b. deposit privileges
c. dividends
d. assignment
35. If the interest on a policy loan is not paid at the policy anniversary the insurance
company may
a. Demand full settlement of the loan
b. Terminate the contract
c. Refuse to grant future additional loan
d. Increase the present loan by the interest
37. The insured named a primary and secondary revocable beneficiary for Ps. 20,000
policy. Which of the following is correct?
38. 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
39. If the interest on a policy loan is not paid at the policy anniversary the insurance
company may
40. A yearly renewable term life insurance policy generally specifies that
41. The following statements concerning insurable interest are correct, except:
42. One requirement a policyowner must meet in order to reinstate a life insurance
policy is to
44. Life insurance guarantees cash benefits for all the following except
a. Mortgage
b. Clean-up fund
c. Family dependency period income
d. Educational fund
45. Under an endowment policy, if the person whose life is insured survives to the end
of the period stated in the policy, the
46. Life insurance contributes directly to the welfare and progress of the country by
47. A yearly renewable term life insurance policy generally specifies that
50. All of the following term policies can be sold as a basic policy contract except
51. A housewife without gainful employment applies for a P500,000 life coverage.
Which of the following should the agent do?
1. In a case where the premium has not been paid and the cash values has been
exhausted, the policy can still avail of the grace period.
2. 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.
4. 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.
6. A policy that provides guaranteed cash values plus extra annual distributions and
pays the insured after a specified time is known as a participating endowment.
10. A policy is not rendered void by reason of misstatement of the assured’s death.