81. Life insurance is
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a. a luxury afforded by the rich
b. only available to a specific group
c. a cooperative risk-sharing plan
d. a speculative risk
82. A life insurance company earns income from two main sources
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a. premium income and investment income
b. mortgage income and premium income
c. dividend income and interest income
d. mortgage income and dividend income
83. The official who makes the necessary assumption and calculation with respect to the principal elements of life insurance premium in order to arrive at the premium rates to be charged is the
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a. life agent
b. senior statistician
c. Insurance Commissioner
d. Actuary
84. Life insurance can provide money when income stops because of
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a. disability
b. death
c. retirement
d. all of the above
85. The insurance industry is under government regulations because
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a. it is required to account for money spent in company operations.
b. it pays high taxes.
c. it affects public interest.
d. it is a charitable institution.
86. Which of the following statements is correct?
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a. rebating of premiums can only be authorized by the head office of the insurer.
b. a life insurance is not allowed to identify on his letterhead the name of the insurer he represents.
c. life insurance agents are allowed to act for two insurers at the same time under the same license.
d. rebating of premiums by an insurance agent is prohibited.
87. Rebating is
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a. dating the policy a month in advance.
b. giving false information.
c. twisting.
d. premium discrimination against policyholders.
88. One example covered under the ethical practices and procedures is
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a. keep all policyholders information confidential.
b. always recommend a will.
c. never drink in front of clients.
d. always pick up the first premium with the application for insurance.
89. The following are unethical practices in the solicitation and procurement of insurance except
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a. misleading estimates of the dividends or shares of surplus to be received thereon.
b. inducing a policyholder to lapse, forfeit or surrender a policy he holds for another company.
c. misrepresenting the terms of any policy issued by any insurance company or the benefits or advantages promised thereon.
d. obtaining or attempting to obtain a license by fraud or misrepresentation.
90. The misstatement of facts by either of the parties of insurance, whether in writing or orally, preliminary and in reference to making the insurance contract is
*
a. knocking
b. overloading
c. misrepresentation
d. twisting