#1
Which factor typically influences the premium amount of a life insurance policy the most?
Age of the insured
Gender of the insured
Occupation of the insured
Amount of coverage
#2
In life insurance, what does the 'primary beneficiary' refer to?
The person who receives the policy proceeds if the insured dies
The person who pays the insurance premiums
The insurance agent selling the policy
The company issuing the policy
#3
In life insurance, what is the purpose of the 'grace period'?
To allow policyholders to reinstate lapsed policies without penalty
To extend the coverage period beyond the policy term
To determine the surrender value of the policy
To specify the age limits for policyholders
#4
What is the purpose of a beneficiary designation form in a life insurance policy?
To specify who will receive the policy proceeds upon the insured's death
To determine the premium amount
To modify the coverage term
To cancel the policy
#5
Which of the following factors can affect the cost of life insurance premiums?
Health condition
Favorite color
Type of pet
Favorite movie genre
#6
What is the primary purpose of life insurance?
To provide financial protection to the insured's beneficiaries in the event of death
To generate income for the insured during retirement
To cover medical expenses
To purchase a new home
#7
Which settlement option allows beneficiaries to receive the policy proceeds in regular payments over a fixed period?
Lump-sum payment
Fixed-period option
Interest-only option
Life income option
#8
Which of the following is NOT a common factor used to determine life insurance premiums?
Age
Smoking status
Marital status
Health history
#9
What is the purpose of a rider in a life insurance policy?
To modify or add coverage to the base policy
To decrease the premium amount
To terminate the policy
To transfer ownership of the policy
#10
Which of the following is NOT a typical settlement option for life insurance policies?
Lump-sum payment
Fixed-period option
Fixed-rate option
Interest-only option
#11
What does the term 'underwriting' refer to in the context of life insurance?
The process of assessing risk and determining premiums
The process of distributing policy proceeds to beneficiaries
The process of modifying policy terms
The process of terminating a policy
#12
Which of the following factors is typically NOT considered when determining life insurance premiums?
Occupation
Height and weight
Annual income
Smoking status
#13
What is the purpose of designating a contingent beneficiary in a life insurance policy?
To receive the policy proceeds if the primary beneficiary is unable to
To assist in the application process for the policy
To determine the premium amount
To serve as the primary beneficiary's representative
#14
Which of the following statements about whole life insurance is TRUE?
Premiums increase over time
Coverage expires after a certain period
It typically includes a cash value component
It offers coverage for a specific term
#15
What does the term 'accelerated death benefit' refer to in the context of life insurance?
A portion of the death benefit paid to the beneficiary while the insured is still alive
A policy feature that decreases the death benefit over time
A type of settlement option for policy proceeds
A provision that increases the premium amount annually
#16
What is the purpose of the contestability period in a life insurance policy?
To allow policyholders to cancel their policies without penalty
To give beneficiaries time to claim the death benefit
To investigate the accuracy of information provided in the application
To extend the coverage period beyond the policy term
#17
What happens to the policy's cash value upon the death of the insured in a permanent life insurance policy?
It is forfeited by the insurance company
It is added to the death benefit paid to the beneficiary
It is refunded to the policyholder
It is donated to a charity
#18
In a life insurance policy, what does 'underwriting class' refer to?
The category that determines the premium rate based on the applicant's risk profile
The list of beneficiaries designated to receive the policy proceeds
The type of coverage provided by the policy
The process of investigating a claim