#1
Which of the following factors typically influences life insurance premiums?
Age
Blood type
Favorite color
Height in meters
#2
What does 'beneficiary designation' refer to in life insurance?
The policyholder's favorite charity
The individual who receives the death benefit
The insurance agent's commission
The insurance company's profit
#3
What is the purpose of underwriting in the context of life insurance?
To determine the premium amount
To sell insurance policies
To handle claims processing
To advertise insurance products
#4
Which of the following is NOT typically considered when calculating life insurance premiums?
Occupation
Marital status
Number of children
Smoking habits
#5
What is the purpose of a life insurance policy's 'grace period'?
To extend the coverage period
To provide a period for premium payment after the due date without penalty
To allow beneficiaries to contest the policy
To allow policyholders to borrow against the policy's cash value
#6
In life insurance, what is 'term life insurance' primarily designed for?
To provide coverage for a specific period
To provide coverage for the insured's entire life
To accumulate cash value over time
To provide coverage for critical illnesses
#7
What does the term 'accelerated death benefit' refer to in life insurance?
A benefit that accelerates the death benefit payment if the insured is diagnosed with a terminal illness
A benefit that accelerates the policy's cash value growth
A benefit that accelerates the premium payment schedule
A benefit that accelerates the coverage period
#8
In life insurance, what is the function of a 'cash value' component?
It represents the amount the beneficiary will receive upon death.
It serves as an investment component that accumulates over time.
It's the premium payment amount.
It determines the policy's term.
#9
What happens if a life insurance policyholder fails to designate a beneficiary?
The insurance company keeps the death benefit.
The policy becomes void.
The death benefit goes to the policyholder's estate.
The beneficiary is automatically the policyholder's spouse.
#10
What is the main difference between term life insurance and permanent life insurance?
Term life insurance has a cash value component, while permanent life insurance does not.
Permanent life insurance provides coverage for a specific term, while term life insurance provides coverage for life.
Term life insurance premiums increase over time, while permanent life insurance premiums remain constant.
Permanent life insurance offers flexible premium payment options, while term life insurance does not.
#11
What is a 'revocable beneficiary' in life insurance?
A beneficiary who cannot be changed once designated
A beneficiary who receives a fixed premium amount
A beneficiary who is chosen by the insurance company
A beneficiary whose designation can be changed by the policyholder
#12
What is the main advantage of a 'joint life insurance policy'?
It offers higher death benefits
It provides coverage for multiple lives under one policy
It is cheaper than individual policies
It allows policyholders to change beneficiaries easily
#13
In life insurance, what does the 'conversion privilege' allow a policyholder to do?
Convert term life insurance into permanent life insurance without evidence of insurability
Convert permanent life insurance into term life insurance without evidence of insurability
Convert the death benefit into a cash value
Convert the policy into an annuity
#14
What is a 'paid-up insurance' option in life insurance?
An option to switch to a different insurance company
An option to convert term insurance into permanent insurance
An option to stop paying premiums while keeping coverage active
An option to increase the death benefit
#15
Which of the following is NOT a common type of life insurance beneficiary designation?
Primary beneficiary
Contingent beneficiary
Revocable beneficiary
Group beneficiary
#16
What happens to the premium payment in a life insurance policy with a 'waiver of premium' provision if the insured becomes disabled?
The premium payment is refunded.
The premium payment is waived by the insurance company.
The premium payment doubles.
The premium payment increases.
#17
What is the purpose of the 'incontestability clause' in a life insurance policy?
To contest the beneficiary's claim
To contest the policyholder's identity
To contest the premium payment
To prevent the insurance company from voiding the policy after a certain period
#18
What does 'reinstatement' refer to in the context of a life insurance policy?
The addition of a new beneficiary to the policy
The process of renewing a lapsed policy to its original status
The change of policy ownership
The reduction of coverage amount
#19
Which of the following factors is NOT typically considered when determining life insurance premiums?
Occupation
Driving record
Gender
Hobbies and activities