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

The type of insurance used to indemnify a firm for the loss of earnings brought about by the death or disability of an officer or other significant employee Is

Options :

A : business continuation life.

B : business overhead.

C : key person.

D : employee welfare.

Answer: C

Question 3

An Insurer would consider which of the following In determining whether to accept a group life plan?

Options :

A : Grace period

B : Beneficiary

C : Average age

D : Dependents

Answer: C

Question 4

The proposed insured's statements on a life insurance application are considered to be

Options :

A : absolute statements.

B : misrepresentations.

C : representations

D : warranties

Answer: C

Question 5

All the following riders can Increase the death benefit amount EXCEPT

Options :

A : Cost of Living.

B : Waiver of Premium.

C : Accidental Death Rider.

D : Guaranteed Insurability.

Answer: C