ALC Test Bank
ALC Test Bank
33290 Correct
as
policy fee
policy reserves
policy values
extra premium
33441 A clean-up fund would be used to provide for all the following except Incorrect
Burial expenses
A father enters into a life insurance contract on behalf of his child. In this case, the father
33526 Incorrect
is the
insured
beneficiary
insurer
applicant-owner
an occupation the duties of which expose the insured to degree of danger of sustaining injury
an occupation in unhealthy working conditions exposing the insured to elements which can
cause sickness
A housewife without gainful employment applies for a P3 million life coverage. Which of
33705 Correct
the following should the agent do?
Be grateful
33935 A life insurance company earns income from two main sources Incorrect
premium income and investment income
33461 A man with moderate means can have maximum protection possible through Correct
20 Year Endowment
Term Insurance
endowments
dividends
cash values
b. any person upon whom he is wholly or in part dependent on, or from whom he is receiving support
or education
A person wanting a greater coverage for the least amount of premium has an option of
33556 Incorrect
attaching what rider in his permanent life policy?
a waiver of premium
term insurance rider
A policy that may provide for an increase or decrease in the sum insured and/or level
33915 premium payment and has the savings portion tied to a common stock fund with no Incorrect
guaranteed values
participating endowment
annuity
universal life
rated policy
juvenile policy
regular policy
substandard policy
A policyholder may obtain money from the insurance company and still remain insured
33735 Incorrect
by
33615 A risk is considered substandard based on any or all of the following criteria Correct
A term insurance which allows the policy owners to convert it to a permanent insurance
33501 Correct
within a specified period without evidence of insurability contains ___________ feature.
convertibility
renewability
dividend option
both a & b
cash values
protection
savings
dividends
A widow, the beneficiary of a life policy tells you that she wants all the money that she
33881 Correct
can get now. Which of the following do you recommend?
interest option
33677 According to insurance law, a common-law spouse cannot be designated a beneficiary Incorrect
if his/her partner is still living and the previous marriage has not been legally dissolved
33639 All of the following statements regarding a life insurance application are correct, except Incorrect
misstatements of material facts could void the policy during contestable period
a kind of regular annual savings arrangement to provide a pension for life with no life coverage
an arrangement where a person can pay a life insurance company a sum of money in return for a
pension for life
33710 All of the following will be practicable to become beneficiaries except Correct
a kind of regular annual savings arrangement to provide a pension for life with no life
coverage
a kind of regular annual savings arrangement to provide a pension for life with no life coverage
an arrangement where a person can pay a life insurance company a sum of money in return
for a pension for life
An agent is filling up the Agent’s Confidential Report. What information must he put in
33634 Incorrect
his report?
all information he knows which are material to the application for insurance
a and b only
34023 An agent is prohibited from doing all of the following except Incorrect
convince a prospective client to cancel his policy in one insurance company in order to buy a policy in
the insurance company represented by the agent
make complete comparisons of policies he sells and those offered by competing insurance
companies
is a purchase of income
An automatic premium loan differs from the other policy loans in that an automatic
33754 Correct
premium loan
An individual at age 35 purchases a policy under which he will in 20 years receive the
33476 Incorrect
face amount of the policy himself, if he is still alive at that date. This policy is obviously a
20 Year Endowment
20 Pay Life
20 Year Term
fraudulent practices
33456 An insurance plan which offers both protection and savings is called Correct
Temporary plan
Permanent plan
Participating plan
Non-participating plan
An optional rider which can be attached to a policy stopping further premium payments
33531 Incorrect
in the event of disability is called
waiver of premium
when an agent thinks only of his own interest and not of his policyowners
when you purchase bad stocks with expectation that they will improve
when the insurance company accepts more than as usual share of share of poor risk
a creditor
minors
Choose the incorrect statement The entire contract between the policyowner and the
33681 Incorrect
insurance company include
Representation
« Back
33654 For life insurance coverage to be valid, insurance interest must exist Correct
both at the time of the policy issue and at the time of the loan but not necessarily throughout the
lifetime of the policy
Death of employees regardless of cause except suicide during the first year (sometimes two years)
excludes claims arising from deaths that are not work related
If a loan is taken on a participating policy, dividends for that policy while there is a loan
33778 Incorrect
against the policy will be
suspended
paid a reduced rate
unaffected
increased
33763 If a policy did not contain the name of a beneficiary, the beneficiary will be Correct
the wife
the children
33541 If a policy with the accidental death rider becomes paid up Incorrect
premiums on the basic policy stop but the rider premium continues
33768 If a policyowner does not pay a premium on the due date, the policy will immediately Incorrect
lapse
If a policyowner whose wife is the irrevocable beneficiary wishes to cash in his policy, he
33773 Incorrect
must
If an insured is disabled and his life insurance policy is being continued in force through
33566 Incorrect
the waiver of premium, the dividends of the policy would
cease
If the insured dies during the grace period of an unpaid life insurance policy, the amount
33745 Incorrect
payable to the beneficiary is usually the
If the policy did not contain the name of the beneficiary, proceeds will be paid to the
33687 Incorrect
insured’s
state
wife
children
estate
In certain situations, a company may file an interpleader action with a Court of Law. This
33692 Incorrect
remedy is used to
In the event an employee leaves the company in which he is a member of its group
33895 Correct
insurance policy, his group coverage can be changed to an individual policy using the
conversion privilege
33798 In the event that a policy elects the paid up insurance option Incorrect
the premium stops and the policy continues for the full face amount until age 65
the premium cease and protection continues with a reduced amount of coverage