Question 1

Which of the following products is designed to pay benefits that can provide a stream of retirement income to the purchaser?

Options :

A : annuity contract

B : tax-deferred growth

C : variable life insurance

D : modified endowment contract

Answer: A

Question 2

Which statement is NOT a characteristic of a Group Life Insurance Plan?

Options :

A : A master contract.

B : Probationary periods.

C : Individual underwriting.

D : Certificate of Insurance.

Answer: C

Question 3

A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from his injury would make him eligible for benefits under which provision?

Options :

A : Partial disability.

B : Nondisabling injury.

C : Presumptive disability.

D : Flat amount disability.

Answer: A

Question 4

A common disaster clause states that if the beneficiary dies from the same accident as the insured individual, the insurer will proceed as if the

Options :

A : insured individual outlived the beneficiary.

B : beneficiary outlived the insured individual.

C : beneficiary was never named on the policy.

D : beneficiary and the insured individual died simultaneously.

Answer: A

Question 5

If an insured under a life insurance policy dies with an outstanding loan balance then the death benefit will

Options :

A : be reduced by the amount of the loan and interest owed.

B : not be paid until the loan is repaid.

C : be paid less the amount of the loan but not the interest.

D : be paid less the amount of the loan interest but not the principal.

Answer: A