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Answer Key Ic Mock Exam Set B PDF
Answer Key Ic Mock Exam Set B PDF
Answer Key Ic Mock Exam Set B PDF
a. provide for the return of premiums to an adult payor in the event that a minor insured dies
b. provide a waiver of premium benefit in the event of death or disability of the person
paying the premium
c. allow the insurance company to pay the policy’s proceeds to the person who seems
equitably entitled to the proceeds
d. assure that the adult payor will retain a vested interest in the policy when the insured
reaches the age of majority
3. A whole life policy with an initial premium rate that applies to the first 5 years of the policy and a
higher premium rate that applies to the remainder of the premium-payment period is known as
5. The only instance when a life insurance contract is treated primarily as an indemnity agreement is
when a
6. Which of the following describes the convertible feature of a term insurance policy?
7. A policy which permits the policyholder to vary the level of premium or the sum insured, and has its
cash values dependent upon investment performance and the level of premiums paid is known as a
(an) __________ policy.
8. A policy which affords coverage for two or more persons simultaneously with the face amount of the
policy payable when any of the insured dies at which time the policy terminates automatically is
known as a
10. Mr. Alvarez bought a P150,000 policy with a 20-year reducing term rider. He died 5 years after the
policy issue date. After his death, his wife received P150,000 and a monthly income thereafter for
15 years. This definitely has a
12. A person wanting a greater coverage for the least amount of premium has an option of attaching
what rider in his permanent life policy?
a. an occupation the duties of which expose the insured to a degree of danger of sustaining
injury
b. an occupation in an unhealthy working condition exposing the insured to elements which
can cause sickness
c. an occupation which exposes the insured to social hazards
d. all of the above
14. An agent fills out the Agent’s Confidential Report. What information must he put in his report?
15. Most life insurance agents are expressly authorized to perform the following functions:
a. solicit applications for insurance, accept the initial premium and issue a receipt on
behalf of the insurance company
b. solicit and approve the applications of the proposed insured
c. accept initial premium and waive the insurable interest requirement
d. Appraise the applicants and decide on a standard or sub-standard rating
17. If a policyholder wants to get the maximum immediate value from his non-participating policy by
surrendering it, which of the following would he get?
18. The convertible feature of a term insurance policy provides that the policy may be
19. If an insured is disabled and his life insurance policy is being continued in force through the waiver
of premium, the dividends of the policy would
a. cease
b. continue at reduced rate
c. continue as if the owner is paying the premium
d. continue but they would be applied toward the premium being waived
20. All of the following statements regarding a life insurance application are correct except:
a. misstatement of material facts could void the policy during the contestable period
b. it must be signed by the applicant
c. usually, it will be made part of the policy
d. statements made on the application are warranties
a. the amount that the company will pay if the policy is surrendered
b. the amount that can be borrowed at any time
c. the paid-up value of the policy
d. the face amount
23. In a child insurance policy, the Parent Waiver Clause provides that:
24. Which of the following is the least important reason for requiring that insurance agents be licensed?
25. The basic purpose of a conditional premium receipt is to acknowledge payment of the initial
payment of the premium for life insurance and to
a. eliminate the need for acceptance of the offer in forming the contract
b. provide insurance coverage earlier than the policy delivery date if certain
requirements are met
c. guarantee that a policy will be issued as applied for
d. backdate the policy to save age
26. The legal consideration for the promise made by the insurance company in a life insurance contract
is the
27. The Insurance Code specifies that a contract does not take effect unless
31. A policyholder may obtain money from the insurance company and still remain insured by
32. An automatic premium loan differs from the other policy loans in that an automatic premium loan
33. 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
34. Mr. Lorenzo and his primary beneficiary die in a common accident. It is established that the primary
beneficiary died ahead of Mr. Lorenzo and there are no contingent beneficiaries named. The
proceeds of Mr. Lorenzo’s life insurance policy will be paid to
35. Which of the following are requirements in reinstating a policy after it has lapsed for non-payment of
premiums?
37. An insured misstated his age by 3 years in the application indicating that he was younger than his
actual age. If he dies 10 months later, the insurance company will
39. In most cases, policy loan which has not been repaid at the time of the insured’s death will be
a. charged to the person responsible for paying the debts of the insured
b. collected from the life insurance company’s reserve
c. written off against the insurance company under the terms of the premium loan repayment
d. deducted from the proceeds of the policy when the death claim is paid
40. Mr. Jesus Gonzales carried a P500,000 whole life policy for 25 years, never borrowed from it, but
forgot to pay premiums before leaving for a four-month vacation to the USA. On his return trip, he
was killed in a plane crash. As his estate executor, you saw the lapse notice received from the
insurance company for this whole life policy. What action should you take?
a. None, since the policy has lapsed from non-payment of premium and benefits are not paid
b. Investigate to see if the insured elected Premium Loan as a non-forfeiture option
c. Apply for the face amount if the policy is to be paid to the beneficiary since coverage would
have been afforded under the extended term insurance non-forfeiture option
d. Apply for the cash value of the policy under the non-forfeiture option
a. group insurance covering loss from specific hazards, incidental to or related to particular
activities
b. insurance covering all hazards
c. insurance for all types of hospital and health care expenses
d. none of the above
42. A man is about to retire. He has P100,000 which he wishes to use to provide income for himself as
long as he lives and which would continue to his wife as long as she lives after his death. You
would sell him a
43. All of the following statements about group insurance are true except:
44. A client tells you that his bank wants him to use his life insurance policy so that his bank loan will be
paid off if he dies. You recommend that he
45. A policy that is in force for less than the original sum assured with no indebtedness has availed of
46. Anne Santos is designated as the irrevocable beneficiary of a policy owned by her father on his life.
Therefore, unless Anne consents, her father is not permitted to
47. A policyholder tells you that if he dies before his son reaches the age of majority he wants the life
insurance company to hold the sum insured until the son has reached the age of majority. Which of
the following would you recommend?
48. Instead of taking a lump sum settlement under a policy, the insured or the beneficiary can elect to
take a
49. When a policyholder has to pay his premium and interest which of the following has he availed of?
50. All of the following are standard provisions of a life insurance policy except
-end of Set B-