Trad IC exam

A Client tells you that his bank wants him to use insurance policy so that his bank loan will be paid off if he dies. Which of the following will you recommend?

• He appoints an irrevocable beneficiary

• He makes an absolute assignment

• He makes a collateral assignment

• None of the above

Your client george ants to apply for a life insurance policy. As his advisor, you would advise him to do all the following EXCEPT which one?

• Furnish initial information as to insurability

• Give details pertaining to non-forfeiture options

• To convey to the company the desire of the applicant to obtain insurance

• To furnish information on which the contract of life insurance may be written

When you bought an insurance policy on your wife’s life, you were 27 and she was 26, but you stated that you were 26 and she was 27. Five years later, your wife died. Which of the following will the insurer pay?

• The face amount adjusted for misstatement of age

• Slightly less than the face amount

• The sum of the premium paid

• The face amount

Your client tells you when his father died, he received 500,000 free of estate tax, and that he had not even known that his policy existed. Which of the following classifications did your client fall under?

• Collateral assignee

• Absolute assignee

• Revocable primary beneficiary

• Irrevocable primary beneficiary

What happens to to a policy when an irrevocable beneficiary has been designated and the policy owner needs to loan against his policy for a specific reason?

• Alter the dividend option now in effect

• Any transactions or changes in the policy would need the endorsement of the irrevocable beneficiary

• Avail of non-forfeiture option

• Borrow minimal cash loan

Mr. Sy walked out of his house one night, and was never heard from since. His wife wanted to make claim on his insurance policy, as she believes that he is dead. In case, which of the following statements is correct?

• It will take four years before the court could declare him legally dead

• It will take seven years before the court could declare him legally dead.

• The company will pay immediately.

• It will require 6 months before the court could declare him dead.

The widow of your policyholder tells that she does not want a lump sum payment, but she prefers to receive monthly for the rest of her natural life. Which option do you recommend?

• Periodic annuity option

• Life annuity option

• Fixed period option

• Fixed income option

Setting aside possible legal impediments, which option would you recommend if an endowment policy owner, at age 65, tells you that he wants to provide his church with a monthly donation for as long as the the church exist?

• Interest option

• Life annuity option

• Fixed income option

• Periodic annuity option

Most life insurance agents are expressly authorized to perform the following functions:

• Solicit application for insurance, accept the initial premium, and issue a receipt on behalf of the insurance company

• Solicit and approve the application of the proposal insured

• Accept initial premium, and waive the insurable interest requirement

• Appraise applicants, decide on a standard or sub-standard rating

Helena owns a policy that is kept in force by paying the premiums on semi-annual basis. If she elected the non-forfeiture option. This means she _____.

• Chooses a mode of settlement for the life proceeds

• Discontinues premium payments for whole life or endowment policy

• Converts a term policy to a whole life policy

• Renews a termlife policy