Question 1

Which is a correct statement about life insurance?

Accepted Answer

A)  People are less apt to actively seek life insurance than health insurance.
B)  Private sources are the only available sources for life insurance.
C)  Life insurance is extremely important if you are single and living alone.
D)  There is only one type of life insurance.
E)  Consumer awareness of life insurance has changed considerably over the years.F) A) and B)
G) A) and C)

Question 2

The 2001 CSO Table separates the mortality experience by:

Accepted Answer

A)  age.
B)  income level.
C)  occupation.
D)  domicile.
E)  sex.F) B) and D)
G) C) and D)

Question 3

The premium that is refunded to holders of a participating policy is called the policy dividend.

Accepted Answer

A) True 
 B)False

Question 4

A chartered life underwriter (CLU)is a life insurance agent who has passed a series of college-level examinations on insurance and related subjects.

Accepted Answer

A) True 
 B)False

Question 5

Consumer awareness of life insurance has changed little over the years.

Accepted Answer

A) True 
 B)False

Question 6

Which method of determining life insurance requirements is designed specifically for a working couple with no dependents?

Accepted Answer

A)  hard method
B)  easy method
C)  "nonworking" spouse method
D)  thorough method
E)  DINK methodF) A) and B)
G) A) and E)

Question 7

The incontestability clause stipulates that the insurance company can dispute the validity of the policy anytime during the insured's lifetime.

Accepted Answer

A) True 
 B)False

Question 8

You probably have little or no need for life insurance if you are:

Accepted Answer

A)  a single person living alone or with parents.
B)  divorced and have two children.
C)  married and your spouse works.
D)  gainfully employeD.
E)  a household with several children.F) A) and D)
G) All of the above

Question 9

When your life insurance objectives change,you should review the provisions in your policy before making any decisions regarding the policy.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following are common uses of life insurance proceeds?

Accepted Answer

A)  education of children
B)  make charitable bequests after death
C)  pay off the mortgage on a home
D)  uncovered medical expenses and funeral costs
E)  all of the uses listed in the other answersF) B) and E)
G) B) and D)

Question 11

A primary reason for buying an annuity is to give you retirement income for the rest of your life.

Accepted Answer

A) True 
 B)False

Question 12

The method of determining life insurance requirements that considers factors such as Social Security and your liquid assets is called the:

Accepted Answer

A)  easy method.
B)  single-income method.
C)  DINK method.
D)  "nonworking" spouse methoD.
E)  "family need" method.F) A) and C)
G) A) and D)

Question 13

Two basic types of life insurance are temporary and permanent insurance.

Accepted Answer

A) True 
 B)False

Question 14

Jane Curtain has a participating life insurance policy that returns part of her premiums at the end of the year.What is the money that is returned to Jane called?

Accepted Answer

A)  Cash Value
B)  Policy Dividend
C)  Beneficiary
D)  Rider
E)  Double IndemnityF) B) and C)
G) A) and D)

Question 15

Who has the greatest need for life insurance?

Accepted Answer

A)  households with small children
B)  singles living alone
C)  singles living with parents
D)  dual income couple
E)  childrenF) B) and D)
G) A) and D)

Question 16

The second-to-die option is paid when the first spouse dies.

Accepted Answer

A) True 
 B)False

Question 17

Which type of insurance is sometimes called temporary insurance?

Accepted Answer

A)  whole life insurance
B)  term insurance
C)  straight life
D)  ordinary life
E)  modified lifeF) D) and E)
G) A) and C)

Question 18

The lump-sum payment settlement option is the least used option.

Accepted Answer

A) True 
 B)False

Question 19

The premium for the whole life policy increases with your age.

Accepted Answer

A) True 
 B)False

Question 20

You can purchase life insurance from two types of insurance companies.

Accepted Answer

A) True 
 B)False

Exam 12: Life Insurance

You can purchase life insurance from two types of insurance companies.

Correct AnswerverifiedShow Answer

The premium that is refunded to holders of a participating policy is called the policy dividend.

Correct AnswerverifiedShow Answer

The incontestability clause stipulates that the insurance company can dispute the validity of the policy anytime during the insured's lifetime.

Correct AnswerverifiedShow Answer

Which is a correct statement about life insurance?

Correct AnswerverifiedShow Answer

Which of the following are common uses of life insurance proceeds?

Correct AnswerverifiedShow Answer

You probably have little or no need for life insurance if you are:

Correct AnswerverifiedShow Answer

When your life insurance objectives change,you should review the provisions in your policy before making any decisions regarding the policy.

Correct AnswerverifiedShow Answer

The method of determining life insurance requirements that considers factors such as Social Security and your liquid assets is called the:

Correct AnswerverifiedShow Answer

Consumer awareness of life insurance has changed little over the years.

Correct AnswerverifiedShow Answer

Two basic types of life insurance are temporary and permanent insurance.

Correct AnswerverifiedShow Answer

Which type of insurance is sometimes called temporary insurance?

Correct AnswerverifiedShow Answer

The second-to-die option is paid when the first spouse dies.

Correct AnswerverifiedShow Answer

Jane Curtain has a participating life insurance policy that returns part of her premiums at the end of the year.What is the money that is returned to Jane called?

Correct AnswerverifiedShow Answer

Which method of determining life insurance requirements is designed specifically for a working couple with no dependents?

Correct AnswerverifiedShow Answer

The lump-sum payment settlement option is the least used option.

Correct AnswerverifiedShow Answer

Who has the greatest need for life insurance?

Correct AnswerverifiedShow Answer

A chartered life underwriter (CLU)is a life insurance agent who has passed a series of college-level examinations on insurance and related subjects.

Correct AnswerverifiedShow Answer

A primary reason for buying an annuity is to give you retirement income for the rest of your life.

Correct AnswerverifiedShow Answer

The premium for the whole life policy increases with your age.

Correct AnswerverifiedShow Answer

The 2001 CSO Table separates the mortality experience by:

Correct AnswerverifiedShow Answer

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