All of the following are characteristics of a group life insurance plan except | Life Insurance MCQs

All of the following are characteristics of a group life insurance plan except

A. Group underwriting
B. Master contract
C. Individual underwriting
D. Probationary period

[bg_collapse view=”button-orange” color=”#4a4949″ icon=”arrow” expand_text=”Show Answer” collapse_text=”Hide Answer” ] C. Individual underwriting  [/bg_collapse]

Life Insurance Quiz / MCQs/ FAQs


The term illustration in a life insurance policy refers to

A. A presentation of non guaranteed elements of a policy
B. Depiction of policy benefits and guarantees
C. Pictures accompanying a policy
D. Charts and graphs

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant and t submit a medical exam. If the policy was issued, what would be the policy’s effective date?

A. The date of policy delivery
B. The date of the Issue
C. The date of application
D. The date of the medical exam

A life insurance policyowner does not have the right to

a) change of beneficiary
b) select a beneficiary
c) take out a policy loan
d) revoke an absolute assignment

Which of these is considered to be a Living Benefit option in a life insurance policy?

a) Reinstatement
b) Waiver of premium
c) Accelerated death benefit
d) Payor benefit

What are life insurance transactions that are marketed to senior citizens and a possible method of fraud called?

A) Stronger-owned life insurance (STOLI) or investor-owned life insurance (IOLI)
B) Stranger-owned life insurance (STOLI) or insured-owned life insurance (IOLI)
C) Senior-owned life insurance (STOLI) or insured-owned life insurance (IOLI)
D) Stranger-owned life insurance (STOLI) or investor-owned life insurance (IOLI)

Some life insurance policies provide benefits not found in other life insurance policies. Which of the following life insurance policies would contain a cash value accumulation?

A. Whole life insurance
B. Permanent life insurance
C. Universal life insurance
D. All of the above

What is stranger-owned life insurance?

A) Life insurance transactions where the insured is a stranger to the producer.
B) Life insurance owned by multiple persons who are strangers to one another.
C) Life insurance that is marketed to people who don’t know each other.
D) A life insurance transaction where investors persuade seniors to take out new life insurance policies, naming the investor as the beneficiary.

Which of the following statements about home service life insurance, which evolved over time from a type of life insurance called industrial life insurance, is true?

A) Most policies have a face value exceeding $100,000.
B) Premiums are usually not collected at the insured’s home and are remitted directly to the agent or the insurer.
C) Industrial life insurance is group term insurance coverage marketed to employees at the work site.
D) This popular product accounts for over 40 percent of the life insurance sold today.

How does underwriting differ between group life and individual life insurance?

A) Group life insurance normally charges a higher premium
B) Individual life insurance is normally written as an annually renewable term policy
C) Individual life insurance can normally be converted to group life insurance
D) Medical questions must be answered on individual life insurance

A tertiary beneficiary stands where in line to receive proceeds of a life insurance policy?

A) Fourth
B) Second
C) Third
D) First

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