Question 1

Which life insurance rider is designed to permit young individuals to be able to purchase additional insurance as they grow older, regardless of insurability?

Options :

A : Cost of living rider.

B : Guaranteed insurability rider.

C : Impairment rider.

D : Multiple indemnity rider.

Answer: B

Question 2

Which of the following BEST describes a waiver of premium clause in a typical disability policy?

Options :

A : The waiver of premium benefit pays the policy premium during a disability claim.

B : This clause eliminates any premium being paid for the lifetime of the insured individual.

C : The monthly benefit under the policy is reduced to offset the premium that is no longer being paid.

D :

This clause generally begins immediately with the doctor stating that the insured person is completely disabled.

Answer: A

Question 3

An individual who is NOT acceptable by an insurer at standard rates because of health, habits, or occupation is called a

Options :

A : rating risk.

B : standard risk.

C : preferred risk.

D : substandard risk.

Answer: D

Question 4

An alien insurer is which one of the following?

Options :

A : One formed under the laws of Oklahoma.

B : One formed under the laws of a state other than Oklahoma.

C : One formed under the laws of a country other than the United States of America.

D : One formed under the laws of a state geographically bordering Oklahoma.

Answer: C

Question 5

How is ownership of a mutual insurance company evidenced?

Options :

A : ownership of stock

B : bonds of the company

C : ownership of a policy

D : certificate of deposit

Answer: C