Question: A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the?
A. estate of the insured only
B. estate of the deceased beneficiaries only
C. named contingent beneficiaries only
D. named living primary beneficiaries
Answer: named living primary beneficiaries
Question: Mortality is calculated by using a large risk pool of?
A. hobbies and time
B. people and time
C. family history and geographical area
D. insurance companies and agents
Answer: people and time
Question: A policyowner is prohibited from making any changes to the policy without the beneficiary’s written consent under which beneficiary designation?
A. Contingent beneficiary
B. Tertiary beneficiary
C. Revocable beneficiary
D. Irrevocable beneficiary
Answer: Irrevocable beneficiary
Question: Over the course of a year, which premium payment mode is most expensive?
A. Monthly
B. Quarterly
C. Semi-Annually
D. Annually
Answer: Monthly
Question: Naming a contingent beneficiary as “all surviving children” is described by which term?
A. Contingent designation
B. Primary designation
C. Class designation
D. Tertiary designation
Answer: Class designation
Question: How is the cost of a policy affected when a policyowner pays premiums more frequently?
A. Not affected
B. Increases
C. Decreases
D. Depends on the type of coverage
Answer: Increases
Question: Proceeds from a life insurance policy are protected from the beneficiary’s creditors by which clause?
A. protection clause
B. creditor clause
C. spendthrift trust clause
D. beneficiary trust clause
Answer: spendthrift trust clause
Question: Which settlement option involves having the proceeds remain with the insurer and earnings paid on a monthly basis to the beneficiary?
A. interest only
B. dividends only
C. extended interest
D. fixed period
Answer: interest only
Question: Which of these premium payment frequencies is not typically available to a policyowner?
A. Bi-weekly
B. Monthly
C. Quarterly
D. Semi-annual
Answer: Bi-weekly
Question: Which of the following enables a life policy to be replaced with another life policy and results in the postponement of the tax consequence?
A. Section 1040 exchange
B. Section 1035 exchange
C. Nonforfeiture Option
D. Spendthrift Option
Answer: Section 1035 exchange