DeanBeaver3042
14) All of the following statements pertaining to insurable…
14) All of the following statements pertaining to insurable interest are true EXCEPT:
A) Every individual has insurable interest in his or her own life
B) Husbands and wives have insurable interest in each othe
C) Aunts and uncles have insurable interest in the lives of their nieces and nephews.
D) Co-business owners have insurable interest in each other even if they are not related.
15) Which of the following is not a component of the face page of a life insurance policy?
A) Names the parties to the contract
B) Stipulation of the number of days of grace days for late policy premium payments
C) A brief description of the coverage
D) The signatures of insurance company officers
16) If an insured intentionally understates his age in an application and then subsequently dies after the policy was issued, based on the age misstatement, the death benefit
A) will not be paid due if fraud was involved
B) will be reduced
C) will be increased
D) will be paid according to the full face amount
17) Which of the following statements about the policy loan provision is correct?
A) Only principal borrowed, and not interest, must be repaid prior to surrender or death
B) Only interest on principal borrowed must be repaid at death or surrender.
C) Neither principal nor interest is due at any time since cash value always belongs to the policy owner.
D) Both principal and interest will be deducted from any surrender or death benefit payable.
18) All of the following statements about the reinstatement provision are true EXCEPT:
A) A policy which had been previously taken as reduced and paid up may be reinstated.
B) Any policy loans must be repaid with interest before reinstated.
C) The company can require the insured to prove insurability before effecting the reinstatement.
D) The policy can only be reinstated if it has been within a limited period of time from lapse, usually three years or less, and the policy as on extended coverage.
19) Supplementary benefits which may be added to the life contract include each of the following EXCEPT:
A) Guaranteed insurability
B) Disability waiver
C) Accidental death benefit
D) Aviation exclusion
20) Which of the following statements about the Accidental Death Benefit are correct?
I. “Accidental means” a is less restrictive standard than accidental result
II. Itpays an extra amount of proceeds which matchesthe face amount ofthe base policy ifthe cause of death was an accident. III. The insured must die within 6 months of an accident for proceeds to be payable.
A) I only B) II only C) I and II D) I, II and III
21) “Total” disability means
A) catching a severe cold which lingers for several weeks.
B) a person from the State of California is ill
C) a person cannot work because of illness or injury at a job for which he is suited or trained by education or experience.
D) D) being able to only do some of your job but not all ‘ of the regular dutie
