Review of attempt 1
Started on | Saturday, 22 June 2013, 12:23 PM | Completed on | Saturday, 22 June 2013, 01:39 PM | Time taken | 1 hour 15 mins | Raw score | 67/110 (61%) | Grade | 60.91 out of a maximum of 100 |
Question
1
Which of the following could initiate the Accelerated Benefits Provision or Rider of a life policy?
Choose one answer. | a. A presumptive disability. | | | b. A condition that is terminal. | | | c. Inability to perform some activities of daily living. | | | d. A total disability not reducing life expectancy. | |
The critical trigger within the Living Needs rider is the terminal status of the insured (i.e. projected to die within 2 years). Unless a disability would create terminal status, the advance of death benefit would not be allowed.
Incorrect
Marks for this submission: 0/1.
Marks for this submission: 0/1.
Question
2
A beneficiary of a life insurance policy on his recently departed spouse selects the Life Income Only Settlement Option in order to get the highest monthly payment for life. Which of the following would not affect the monthly amount he will receive?
Choose one answer. | a. The prevailing interest rate | | | b. The amount of the death benefit | | | c. The age of the beneficiary at the spouse's death | | | d. Age of spouse at time of death | |
It is not the insured's age that is important, but the beneficiary's age at the time of settlement. Any periodic payment made or received is a function of three key variables, principal (e.g. death benefit), prevailing interest rates, and term (i.e. number of payments), just as in a mortgage.
Incorrect
Marks for this submission: 0/1.
Question
3
Which of the following are true of the State Guaranty Association?
Choose one answer. | a. All of the answers listed. | | | b. Establish benefit levels. | | | c. Protect policyowners, insureds, and beneficiaries when an insurer is unable to