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| Section | Objectives |
|---|---|
| Topic 1: Insurance Fundamentals | - Risk management principles
|
| Topic 2: Life Insurance Products | - Term life insurance
|
| Topic 3: State Regulation (Maryland Insurance Law) | - Ethics and conduct
|
| Topic 4: Policy Provisions and Riders | - Common riders
|
1. All of the following statements about the life insurance protection provided by a family life insurance policy are true EXCEPT:
A) Most of the premium amount purchases whole life insurance for the head of the household
B) Coverage is available only to heads of households who are 30 years old or younger
C) Coverage for dependents can be converted to whole life insurance without evidence of insurability
D) Life insurance coverage is provided automatically to children born during the policy period
2. The needs approach to personal life insurance planning includes the creation of an emergency reserve fund.
This fund is designed primarily to:
A) Pay off an existing mortgage
B) Cover the cost of unexpected expenses
C) Provide retirement income
D) Pay for college tuition and books
3. Which of the following is a requirement of an insurable risk?
A) There must be a large number of different loss exposures.
B) The loss must be catastrophic.
C) The chance of loss must be calculable.
D) The loss must be intentional.
4. When an individual replaces a life insurance policy, the form entitled "Important Notice Replacement of Life Insurance or Annuities" is REQUIRED to be signed by:
A) Both the applicant and the insurance producer
B) An officer of the insurer
C) The applicant only
D) The insurance producer only
5. A universal life insurance policy can be described most accurately as a combination of:
A) An endowment policy and an interest-sensitive deposit fund
B) A flexible premium deposit fund and a monthly renewable term insurance policy
C) A mutual fund and a whole life insurance policy
D) A term insurance policy and an annuity
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: B |
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MarylandAccident and Health or Sickness Producer Series 20-24 Exam
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