21. If the insured dies during the grace period of an unpaid life insurance policy, the amount payable to the beneficiary is usually the
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a. total premium paid plus interest.
b. cash surrender value of the policy minus the unpaid premium.
c. face amount of the policy minus the unpaid premium.
d. full face amount.
22. Which of the following statements is correct?
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a. an insurance agent’s license will be renewed when the Commissioner is satisfied that the information in the application is accurate and all requirements are met.
b. an insurance agent’s license is valid only for one month.
c. an insurance agent’s license is valid during the lifetime of the agent.
d. an insurance agent’s license will be renewed when the corresponding application and fee are received by the Insurance Commissioner.
23. Which of the following statements is correct?
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a. an agent is allowed to share commissions when selling a whole life policy but not when selling a term policy.
b. an agent is allowed to share commissions with another licensed agent or agents but with no one else.
c. sharing the commission with any other person is called twisting.
d. an agent is not allowed to share commissions with any person.
24. Persuading a policyowner, directly or indirectly, to surrender or lapse a policy in one company and replacing it with a policy from another company is
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a. rebating
b. twisting
c. knocking
d. discounting
25. Interest is charged on policy loans
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a. for registered policies only.
b. if the loan is outstanding for more than a year. A loan repaid within a year is interest free.
c. to replace investment income the insurer cannot earn since a loan has been granted.
d. for participating policies only
26. An insurance agent’s license can be revoked for
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a. fraudulent practices.
b. violation of any provision of the Insurance code.
c. misrepresentation in the application for license.
d. any or all of the above
27. The term knocking means
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a. promising to pay to two annuitants a fixed annual income as long as both survive.
b. making derogatory remarks about competing underwriters or companies.
c. the number of years that person at a given age will live on the average as shown by the mortality table.
d. None of the above
28. The three non-forfeiture values in a permanent policy are
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a. cash dividends, bonus additions and extended term insurance.
b. cash surrender values, loan value, assignment.
c. waiver of premium, reinstatement and the policy loan.
d. cash surrender value, paid value, extended term insurance.
29. What are the basic settlement options?
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a. cash surrender value, automatic premium loan.
b. fixed amount, fixed period, interest, fixed period and for life.
c. double indemnity, total disability waiver of premium.
d. policy loans, assignment, beneficiary designation.
30. When you bought an insurance policy on your wife’s life you were 27 and she was 26, but you stated that you were 26 and she was 27. Five years later your wife died. The insurance company will pay
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a. the face amount.
b. the face amount adjusted for misstatement of age.
c. the sum of the premium paid.
d. slightly less than the face amount.