Tester

1. Ms. L applies for life insurance but does not make an initial premium payment. Her actions constitute?

1. a. An offer to purchase life insurance.

2. b. An invitation to negotiate for the purchase of life insurance.

1. An applicant has an insurable interest in each of the following situations EXCEPT?

1. a. A wife in her husband.

2. b. A parent in his or her child's care provider.

3. c. Parents in their children.

4. d. Business partners in each other.

1. In order to qualify for AD&D coverage, the accident must directly cause death within how many days?

1. a. 30 Days

2. b. 60 Days

3. c. 120 Days

4. d. 90 Days

1. A risk management technique that transfers risk is:

1. a. Risk avoidance.

2. b. Insurance. 

3. c. Risk reduction.

4. d. Risk retention.

1. Under Social Security, a worker that is fully insured would be eligible for each of the following benefits EXCEPT:

1. a. Hospital benefits 

2. b. Retirement benefits

3. c. Disability benefits

4. d. Survivor benefits

1. Who can alter an insurance policy?

1. a. An executive officer of the company.

2. b. The agent.

1. Which of the following statements regarding an AD&D policy is CORRECT?

1. a. Dismemberment benefits are paid in monthly payments.

2. b. It provides a death benefit, so the Insured should name a beneficiary.

3. c. It pays a death benefit when death is the result of disease, such as bubonic plague.

4. d. It will pay the capital sum (rather than the principal sum) in the event of an accidental death.

1. The purpose of the Fair Credit Reporting Act is to:

1. a. Provide fair and accurate consumer credit reporting.

2. b. Ensure that all people are treated equally, regardless of credit background.

1. Each of the following is true regarding a Stranger Originated...