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If the interest on a policy loan is not paid at the policy anniversary, the insurance company may

Demand full settlement of the loan

terminate the contract

Refuse to grant future additional loans

Increase the present loan by the interest (correct)

The extent of the medical evidence required is determined by

The age of the applicant and the proposed sum to be insured (correct)

Occupation of the applicant

Financial condition of the applicant

Data of the last medical examination

Indicate which of the following is not a function of an application for life insurance policy

To give details pertaining to non-forfeiture options

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

To furnish initial information as to insurability

To convey to the company the desire of the applicant to obtain insurance (correct)

The insurance companies make use of the laws of probability in order to

Estimate future death rates among members of a given group Signup and view all the answers

Which of the following statements regarding insurance premiums is false

Cash is required for all premiums paid in the grace period Signup and view all the answers

Endowment life insurance and term life insurance are similar in that both plans

Provide life insurance protection for only the period of time specified in the policy contract Signup and view all the answers

A non-forfeiture option would ordinarily be selected at the time a policy owner

Discontinues premium payments for a whole life or endowment policy Signup and view all the answers

The conversation of a life insurance policy is dependent on all the following exxcept

Pressure selling Signup and view all the answers

Purchasing a continuous-premium, whole life policy rather than a limited-payment whole life policy, gives the policy owner the advantage of

More insurance protection for the same annual premiums outlay Signup and view all the answers

Name the provision in a permanent life insurance policy under which premiums are discontinued, full insurance will be maintained for a specified period:

Extended term insurance Signup and view all the answers

The basic coverage provided by life insurance policies may be supplemented by separate provision that provide coverages for additional amounts or of a different nature. Collectively these provisions are known as

Riders Signup and view all the answers

The insured name a primary and secondary revocable beneficiary for P20,000 policy. Which of the following is correct?

The insured can add a third beneficiary at any time Signup and view all the answers

An agent who determines a prospect's complete financial requirements preparatory to offering him a policy using the correct approach known as

Total needs selling Signup and view all the answers

In a policy where an irrevocable beneficiary has been designated the insured, without the beneficiary's permission, can

Discontinue premium payments Signup and view all the answers

Which of the following statements is false?

Because of its very short duration the cash value of a yearly renewable term policy grows very fast Signup and view all the answers

Which of the following does not have legitimate insurable interest

An individual on the life of his mistress Signup and view all the answers

Which of the following is the least important reason for requiring that insurance agents be licensed?

To provide additional income to the government through license fees Signup and view all the answers

A yearly renewable term life insurance policy generally specifies that

Premiums shall increase every time the policy renewed Signup and view all the answers

If the interest on a policy loan is not paid at the policy anniversary the insurance company may

Increase the present loan by the interest Signup and view all the answers

The incontestability clause

Prevents the company from denying a claim after the policy has been in force for 2 years Signup and view all the answers

Non-forfeiture provisions are included in whole life and endowment policies to assure the policy owner that certain minimum policy benefits shall remain with him even under certian changed conditions. Non-forfeiture values guarantee to the policy owner that

Any guaranteed policy values will belong to the policy owner even if premium payments are discontinued Signup and view all the answers

In case of renewable term insurance, the policy owner may

Renew the coverage based on a higher premium Signup and view all the answers

When you bought an insurance policy on your wife's life, you were 27 and she was 26, but you stated that were 26 and she was 27. Five years later your wife died. The insurer will pay

The face amount adjusted for misstatement of age Signup and view all the answers

Both endowment and term life insurance policies provide that

Insurance protection will be limited to a specified period Signup and view all the answers

All of the following are sources of information to an insurance company pertaining to the insurability of an applicant except

Government tax records Signup and view all the answers

an insurance company generally has the right to rescind a life insurance policy if

Company discovers at any time that the policy owner was actually a minor at the time of application Signup and view all the answers

In most life insurance applications, the largest amount of information requested is which

Relates to the Insurability of the applicant Signup and view all the answers

In the event that a policy owner elects the paid-up insurance option

The premiums cease and protections continues with a reduced amount of coverage Signup and view all the answers

A father has his present life insurance payable to his estate and because he has now retired he wants to pass the policy on to his son who will assume the premium payments. Which of the following will he have to appoint his son to achieve his desire and protect the son from Estate Tax Liability?

Absolute assignee Signup and view all the answers

What are the basic settlement options?

Filed amount, fixed period, life income, interest on deposit Signup and view all the answers

Not with standing possible legal impediments, if the owner of an endowment at age 65 policy tells you that at the maturity of the policy he wants to provide his church with a monthly donation for as long as the church exists. which option do you recommend?

Interest option Signup and view all the answers

A policy which permits the policy holder to very the level of premium or the sum insured, and has its cash values dependent upon the investment performance and the level of premium paid is known as ________ policy

Universal life Signup and view all the answers

Which of the following statements about "Disability Waiver of Premium Rider" is false?

The insured has to die while disabled Signup and view all the answers

If the applicant for life insurance fails to disclose or misrepresents a material fact, the contract is

Valid unless the insurer can prove fraud Signup and view all the answers

A man applied for a P20,000 whole life policy and paid the full initial premium to the soliciting agent. The agent issued a binding receipt. Under such a receipt, the insurance company

Immediately provides interim insurance that remains in effect until the policy is issued or the application is declined Signup and view all the answers

Paid-up additions:

Affect both cash and loan values of the policy Signup and view all the answers

The company will allow a policy change from a higher premium to a lower premium provided the insured

Presents satisfactory evidence of insurability Signup and view all the answers

The total life coverage of a permanent basic policy can be greatly increased through the use of

A supplemental term rider Signup and view all the answers

The settlement options provisions may provide all of the following except:

Payments of the proceeds for the life of the insured Signup and view all the answers

In certain situations a company may file interpleader actions with a court of Law. This remedy is used to

Decide conflicting claims on the same insurance proceeds Signup and view all the answers