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Insurance Licensing Life and Accident and Health or Sickness Producer - Combo Series 20-30 Sample Questions:
1. (If all beneficiaries die before the insured dies, the proceeds of a life insurance policy will be paid to:)
A) The beneficiary's estate
B) A beneficiary named by the court
C) The insured's creditors
D) The insured's estate
2. An existing life insurance policy is sold by the policyowner to help finance the cost of a terminal illness. This is an example of:
A) A viatical settlement
B) A survivorship policy
C) A nonforfeiture option
D) An accelerated death benefit
3. If, after submitting an application, a producer becomes aware of a material fact that may affect the underwriting decision, the producer ' s ethical responsibility requires that the producer:
A) Advise the applicant to amend the application
B) Deny knowledge of the fact
C) Acknowledge the fact only if asked by the insurance company
D) Report the fact to the insurance company
4. The designation of a beneficiary by class in a life insurance policy means that:
A) Individual beneficiaries are not specified by name
B) The beneficiaries are unrelated to the insured
C) The policy must be a form of business life insurance
D) A primary beneficiary cannot be designated in the policy
5. All of the following statements about universal life insurance are true EXCEPT:
A) The Internal Revenue Code places a minimum limitation on the difference between the cash value and the death benefit
B) It may be written with either a level death benefit or an increasing death benefit
C) Failure to pay the renewal premium automatically causes the policy to lapse
D) Withdrawals of the policy cash value are permitted and sometimes subject to a surrender charge
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: C |
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