Insurance MCQ

Mary and Philip are married. Philip named Mary as the primary beneficiary of his life insurance policy. His children from a prior marriage are contingent beneficiaries. Under the uniform simultaneous death act, who will receive the death emerging is Mary and Phillip are in a car accident and there is no evidence of who died first? Answer: Philips children's from his prior marriage

Which beneficiary designation is most appropriate for a person who wants to name his spouse as a beneficiary of his life insurance policy, and simultaneously retain full policy ownership rights Answer: Revocable beneficiary

Which of the following prevents creditors from seizing life insurance policy proceeds as long as there is at least one living named beneficiary, excluding the insured's estate? Answer: Spendthrift clause

If an irrevocable beneficiary is named on the life insurance policy, all of the following are true: Answer: The policy owner pays the premium, irrevocable beneficiaries must consent to cancelling the policy, policy owners need consent to assign the policy.

Of the following individuals, who has the right right change the beneficiary designations in a life insurance policy? Answer: The policyholder

When Dakota's life insurance policy was written it stated on the policy that Dakota was male. However, Dakota is female. On average, women tend to live several years longer than men. When Dakota died this misstatement was discovered. How did this impact the policy? Answer: The death benefit was increased.

The stipulated period of time, allotted by the insurance company, to allow a policy holder to make an overdue payment while the policy remains in force and coverage is provided is called the. Answer: Grace period

Gerry forgets to pay his life insurance premium, and the policy lapses. If he is within the reinstatement period and decides to reinstate his policy, he will be required to take all the following actions: Answer: Provide proof of evidence of insurability, pay any back-due interest on an outstanding policy loan, and pay all past-due premiums

Joanna's cash value in her life policy went to zero. Which of the following statements is true about the effect on her cash value ;I've insurance policy? Answer: Her policy lapsed and her premium didn't get paid.

Withdrawals or partial surrenders can be made on the cash value of a universal life policy. Which of the following is specified in the policy? Answer: How much can be withdrawn

The insuring clause of a policy includes all of the following: Answer: The names of covered individuals, the period of coverage of the policy, the effective date of the policy

Marcella purchases a modified life insurance policy at the age of 31. Thinking she could get a slightly better rate on her policy, she lists her age as 21. If the insurance company discovers the error upon Marcella's death, what action will the insurance company take? Answer: Pay the death benefit based on Marcella's actual age

If a policy loan is unpaid, the automatic premium loan provision has effect of deducting the amount of the loan with interest from the death benefit. What should the policyholder do to avoid this reduction in the death benefit? Answer: Repay the loan with interest

Julie applies for a health insurance policy. Her consideration consists: Answer: Statements made on the application and initial premium.

How long is the loan period on STOLI arrangements? Answer: 2 years

The provision identifies the named insured, type and amount of coverage provided by the policy: Answer: Insuring cause

Jennifer is trying to add her insurance premium payments to her budget. All of the following are accepted payment mode options: Answer: Annually, monthly, quarterly

Which provision is mandatory in life insurance policies? Answer: Grace period

All life insurance is either term insurance or cash value insurance. Term insurance insures your life only for a specified time. Which of the following is not true about term insurance? Answer: Term insurance builds cash value

What is the primary purpose of the entire contract provisions in s life insurance policy? Answer: Provide assurance that the policyholder has all necessary policy documents in their possession.