Delaware Life Insurance Exam Study Questions with Complete Solutions What is the benefit of choosing extended term as What is the benefit of choosing extended term as a nonforfeiture option? - Correct Answers It has the highest amount of insurance protection Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean? - Correct Answers The beneficiary will only receive payments of the interest earned on the death benefit If a life insurance policy has an irrevocable beneficiary designation, - Correct Answers the beneficiary can only be changed with written permission of the beneficiary Which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors - Correct Answers life expectancy Which is NOT true about beneficiary designations? - Correct Answers The beneficiary must have insurable interest in the insured.which of the following is true regarding taxation of dividends in participating policies? - Correct Answers dividends are not taxable An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this? - Correct Answers reinstatement provision Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parent have died or become disabled? - Correct Answers payor benefit The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose? - Correct Answers interest only option 1 / 3
a prospective insured receives a conditional receipt but dies before the policy is issued. the insurer will - Correct Answers pay the policy proceeds only if it would have issued the policy a domestic insurer issuing variable contracts must establish one or more - Correct Answers separate accounts Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary? - Correct Answers Life income with period certain within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained? - Correct Answers 3 days when a life insurance policy was issued, the policyowner designated a primary and a contingent beneficiary.Several years later, both the insured and the primary beneficiary died in the same car accident, and it was impossible to determine who died first.Which of the following would receive the death benefit? - Correct Answers the insured's contingent beneficiary which of the following is TRUE regarding the premium in term policies? - Correct Answers the premium is level all of the following are examples of third-party ownership of a life insurance policy EXCEPT - Correct Answers an insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan which of the following types of policies will provide permanent protection? - Correct Answers whole life The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called - Correct Answers joint and survivor which of the following is NOT true regarding equity indexed annuities - Correct Answers they earn lower interest rates than fixed annuities 2 / 3
An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible.What happens at the end of the 10-year term? - Correct Answers the insured may renew the policy for another 10 years, but at a higher premium rate all of the following are true regarding the guaranteed insurability rider EXCEPT - Correct Answers The rider is available to all insured which of the following terms is used to name the nontaxed return of unused premiums? - Correct Answers dividend when an insured under a life insurance policy dies, the designated beneficiary received the face amount of the policy as well as a refund of all of the premiums paid. which rider is attached to policy? - Correct Answers return of premium the ownership provision entitles the policyowner to do all of the following EXCEPT - Correct Answers set premium rates which of the following is the best reason to purchase life insurance rather than annuities? - Correct Answers to create an estate which of the following determines the cash value of a variable life policy? - Correct Answers the performances of the policy portfolio which of the following is TRUE about the 10-day free-look period in a life insurance policy? - Correct Answers it begins when the policy is delivered which of the following riders would NOT cause the death benefit to increase? - Correct Answers payor benefit rider If the annuitant dies during the accumulation period, who will receive the annuity benefits? - Correct Answers beneficiary contracts that are prepared by one party and submitted to the other party on a take-it-or-leave it basis are classified as - Correct Answers contracts of adhesion
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