Question 1

All of the following are common underwriting factors used by life insurance companies EXCEPT:

Options :

A : Ethnic heritage

B : Amount of insurance applied for

C : Driving record

D : Family health history

Answer: A

Question 2

All of the following statements about the life insurance protection provided by a family life insurance policy are true EXCEPT:

Options :

A : Most of the premium amount purchases whole life insurance for the head of the household

B : Life insurance coverage is provided automatically to children born during the policy period

C : Coverage is available only to heads of households who are 30 years old or younger

D : Coverage for dependents can be converted to whole life insurance without evidence of insurability

Answer: C

Question 3

The penalty tax incurred for premature distributions from an IRA is:

Options :

A : 5%

B : 10%

C : 20%

D : 50%

Answer: B

Question 4

Who normally receives dividends in a stock insurance company?

Options :

A : Only members of the board of directors

B : Shareholders

C : Beneficiaries

D : Producers

Answer: B

Question 5

One factor in premium determination is the expenses of the:

Options :

A : Producer

B : Insurer

C : Policy beneficiary

D : Policy owner

Answer: B

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