Question 1

Loans may generally be obtained against the cash value of a personal life Insurance policy and policy loan proceeds

Options :

A : accelerate the benefits under the policy.

B : are not treated as taxable income.

C : are subject to Federal estate tax.

D : generate nontaxable interest income.

Answer: B

Question 2

Insurance agents have duties and responsibilities to the insured and the insurer. Which of the following responsibilities does an agent owe the insured during the policy year?

Options :

A : Help the insured file and follow up on claims.

B : Notify the insurance department when claims are paid.

C : Work with rating bureaus to establish insurer ratings.

D : Pay the insured-s premiums if they are unable to do so.

Answer: A

Question 3

Under the children's term rider, what occurs when a child reaches the specified age? He or she

Options :

A : automatically becomes the beneficiary of the life insurance policy.

B : must show evidence of insurability to remain covered.

C : may Increase the term coverage of the rider.

D : is eliminated from coverage.

Answer: B

Question 4

Which of the following policies allows the policyowner to change two policy features?

Options :

A : Credit Life.

B : Modified Life.

C : Adjustable Life.

D : Term Life.

Answer: C

Question 5

Extended term Insurance can be selected under which whole life policy provision?

Options :

A : interest-only

B : nonforfeiture

C : cash value

D : settlement

Answer: B