[Study] Life Insurance – 15 Questions Practice ExamLife Insurance – 15 Questions Are you ready for your life insurance exam?Test your knowledge with this free 15 question practice exam! Name Email State A provision where an insurance provider offers an insurance policy to an applicant with the expectation that the insured will accept or reject the policy is called: Insuring agreement Consideration clause Contract of adhesion None of the above None Christopher started a new job, and as part of his benefits, he chose a term life insurance plan. After he received the policy, he had second thoughts and consulted with an independent insurance agent. He purchased a whole life policy and asked his company to cancel the term insurance policy. How did they respond? They said he was locked into it for a year They said he could cancel it, but it would be subject to a penalty They said they’d cancel it flat because there was a 10-day free look provision on the policy They agreed to lower the premium so he could keep both None The risk classification for a life insurance policy is determined by: The insurance agent The insurance provider The applicant A third party underwriter None Which type of policy is considered permanent life insurance? Whole life insurance Variable life insurance a. and b. Neither a. nor b. None A rider that allows an insured to increase the death benefit on a life insurance policy for specified dates without taking a medical exam is called: Accelerated death benefit Disability income rider Children's rider Guaranteed insurability rider None The limited period of time where an insurance provider must prove that a policyholder gave false or incomplete information in order to dispute a claim due to misrepresentation is called what? No contest clause Free look clause Insurability clause Incontestability clause None With an increasing term life insurance policy, how often can an insured typically make changes to their policy? Every six months Never Quarterly Once a year None Tony took out a life insurance policy and added a disability income rider. He suffered a tragic accident and submitted a claim to the life insurance provider, who asked him to provide proof of his disability from his medical providers. This provisional requirement is called: Bilateral Conditional Adhesion Unilateral None Main Street Retailer employs 1,000 people. The company offers its employees a contributory group life insurance policy. How many employees must be signed up for the plan? 750 2 1,000 500 None Brendan has a whole life insurance policy and named his brother, Kevin as the primary beneficiary. He named his sister, Patricia, as the contingent beneficiary. Brendan passed away and just a week later, Kevin passed away. Patricia received the death benefit without incident. What clause does this situation pertain to? Secondary beneficiary clause Common disaster clause Contingent beneficiary clause Insuring clause None How does a payor benefit rider provide protection for the children of parents who have died? It will make scheduled payments to the children It pays a lump sum to the children It waives the remaining premiums due on the policy It will pay the children's future medical bills None All of the following are characteristics of Stranger-Owned Life Insurance policies (STOLI) except: They are illegal The stranger has no insurable interest Insurance providers encourage STOLI if the policyholder is struggling to make payments The insured is aware the policy will be sold None Which of the following is true regarding an accelerated death benefit rider: The insured must take all of it as a lump sum The insured isn’t entitled to anything unless he or she dies The insured can tap into the benefit as needed to pay medical bills The insured can take out money for medical bills and has to surrender the rest None A contract that is offered from a life insurance company to an insured with the requirement of accepting or rejecting the contract as is, without having any say in the contract language is called: Implied authority Contract of adhesion Live contract Static contract None A rider on a life insurance policy that names a spouse as an insured is called? Other insured rider Wage earner rider Neither, a spouse is automatically considered an insured A. and B. None Time's up
