American Life Insurance License Exam Mock Questions
Life category. Insurance policy knowledge (XNUMX)
The Grace Period provision protects the policy owner from the unintentional lapse of the contract.
If the policy holder fails to pay the premium due to [unintentional] behavior, etc., the policy becomes invalid, Grace Period will continue to make the policy effective for a certain period of time.
Jerry is an insured who understated his age on his life insurance application, paying $12 per $1,000 of insurance instead of $15 per $1,000. If he dies, how will the adjusted death benefit be calculated? → 12/15th of the policy's face amount
When an accidental death benefit rider is added to a whole life policy, how does this affect the policy's cash value?
The addition of an ADB additional clause to the Whole Life life insurance policy does not affect the cash value of the policy.
Which rider may pay a portion of death benefit after the insured has been diagnosed with a serious illness
When a terminal illness is diagnosed, the Accelerated death benefit (ADB) additional clause can withdraw part of the compensation in advance.
How is a life insurance policy dividend legally defined?
Dividend, Dividend, is a part of the income from insurance premiums and is usually tax-free.
What does "guaranteed insurability" option allow an insured to do?
Guaranteed insurability allows the insured to continue to insure or increase the amount of insurance in the future without the need for a physical examination.
When does a life insurance policy's waiver of premium take effect?
Waiver of premium, the premium exemption clause, can help realize premium exemption when the insured is physically disabled.
How are acts of war and aviation treated under a group life insurance policy?
War and aviation incidents belong to the insurance exemption scope of group insurance.
If an insured dies because of an accident, which rider will provide additional coverage?
Accidental death rider, an accidental death additional clause, provides additional compensation for accidental death of the insured.
Jack is involved in an accident and becomes totally and permanently disabled. His insurance policy continues in force without payment of further premiums. Which policy provision is responsible for this?
Waiver of premium, the premium exemption clause, can help realize premium exemption when the insured is physically disabled.
After a policy has lapsed, which provision allows the insured to continue coverage?
Reinstatement provision, which allows policyholders to regain protection after the policy expires.
A life insurance policy can be surrendered for its cash value under which policy provision?
Non-forfeiture options, allow to abandon the policy and get back the net cash value in the policy.
Which statement is true regarding policy dividends?
When purchasing an insurance policy, you will choose the dividend option: Dividend options.
Which provision protects the policy owner from unintentional lapse of the contract?
If the policy holder fails to pay the premium due to [unintentional] behavior, etc., the policy becomes invalid, Grace Period will continue to make the policy effective for a certain period of time.
An insurer can be protected from adverse selection with which following provision?
Insurance companies can protect their own interests through suicide clauses.
What time period allows an insured's life insurance policy to remain in force even if the premium was not paid on the due date?
If the policy holder fails to pay the premium due to [unintentional] behavior, etc., the policy becomes invalid, Grace Period will continue to make the policy effective for a certain period of time.
Which of these is NOT a valid policy dividend option?
Monthly income payment, which is paid on a monthly basis, is not a dividend payment option for insurance policies.
Lucy is an insured who understated her age on her policy application, paying $17 per $1000 of insurance of $20 per $1000. If she dies, how will the adjusted death benefit be calculated?
Because the age is falsely reported, the corresponding compensation will also be reduced.The reduced amount corresponds proportionally.
Tom buys a 15-year renewable term policy, Jerry buy an indexed universal life policy. Which statement is NOT true:
Term Policy, term life insurance, has no cash value, so cash value cannot be used.
Which of the following does a policy owner NOT have a right to change?
Dividend schedule, the dividend plan is determined by the insurance company, not by the insured.
What are collateral assignments normally associated with?
Bank loans, bank loans, are usually associated with mortgage evaluation.
What does the grace period allow a life insurance policy owner to do?
If the policy holder fails to pay the premium due to [unintentional] behavior, etc., the policy becomes invalid, Grace Period will continue to make the policy effective for a certain period of time.Therefore, if you forget to pay the premium on time, the grace period will temporarily protect the policyholder.
When a life insurance policy is surrendered, how does the cost recovery rule apply?
If you surrender the insurance, then the basic cost of the policy is tax-free: Cost basis is exempt from taxation.
IN a life insurance policy, the entire contract consists of
The policy contract includes the entire policy contract and the application documents: Policy and attached application.
Which of the following is NOT a common life insurance policy rider?
Extended term is not a common policy additional clause.
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