phil am reviwer 2

.     An endowment policy provides:

               a.     the highest level of savings for the insured within a specified term.

                   b.     protection for the life of the policyholder with premiums payable for a limited term

                   c.     low cost protection only for a limited term with no savings

                   d.     protection with premiums payable for life and a low level of savings as an   alternative to continued protection in old age.

                   e.     all of the above

                   f.     none of the above

2.  A prospect tells you that he is most interested in having a life coverage with a high level of savings by age 65.

    Would you offer him

               a.     a whole life policy?                 c.     a life paid-up at age 65 policy?                                e.    a 20-pay life policy?

                    b.     a term policy?                                          d.    an endowment policy?                                                                                f.     none of the above?

3.  A  prospect tells you that he wants the maximum possible provision for his  retirement with no life coverage. 

    Would you offer him

               a.     a whole life policy?                     c.     a life paid-up at age 65 policy?                             e.     a 20-pay life policy?                                  

                   b.     a term policy?                                                             d.     an endowment policy?                                                            f.      none of the above

4.     A prospect tells you that he has a loan with a financial institution and he would like  an Insurance Company to pay

       it off if he dies but, he is hard up and he wants this coverage at the lowest possible cost.  Would you offer him?

               a.     a whole life policy?                    c.     a life paid-up at age 65 policy?                                e.     a 20-pay life policy?                                                                  

                    b.     a term policy?                                             d.     an endowment policy?                                                               f.     none of the above

5.     An Immediate Annuity is

               a.     Something that makes an actuary see a doctor for special treatment.

                   b.     A single premium whole life policy.

                   c.     An arrangement where a person can pay a Life Insurance Company a sum of  money in return for a pension.

                   d.     A special kind of medical examination that has to be repeated every year.

                   e.     A kind of regular annual savings arrangement to provide a pension for life with no life coverage.   

                   f.     A one-time payment for a pension to start at a predetermined date.

6.     A Single-premium deferred annuity is

               a.    Something that makes an actuary see a doctor for special treatment

                    b.    A single premium whole life policy.

                    c.    An arrangement where a person can pay a Life Insurance Company a sum of   money in return for a pension for life.

                   d.     A special kind of medical examination that has to be repeated every year.

                   e.     A kind of regular annual savings arrangement to provide a pension for life with   no life coverage.

         f.     A one-time payment for a pension to start at a predetermined date

7.     A Retirement Annuity is

               a.    Something that makes an actuary see a doctor for special treatment

                   b.    A single premium whole life policy.

                   c.    An arrangement where a person can pay a Life Insurance Company a sum of  money in return for a pension for life.

                   d.    A special kind of medical examination that has to be repeated every year.

                   e.    A kind of regular annual savings arrangement to provide a pension for life with   no life coverage.

        f.     A one-time payment for a pension to start at a predetermined date

8.     A participating policy has at least four (4) dividend options and it is important that you should  know each of them

       by their correct option number.  Which of the following is the “Fifth   Dividend Option”?

                a.    Paid in cash

                    b.    To reduce the premium due

                    c.    To purchase Paid-up Bonus Additional Insurance

                    d.    To buy shares with the Company

                    e.    To remain on deposit and earn interest at a rate to be declared by the Company

          f.     To buy yearly renewable term equal to the premium paid or the cash value with any  remaining on deposit with the Company and

                 earning interest at a rate to  be declared by the Company from time to time.

9.    You are selling a policy to a client who tells you that he is worried about how he would pay the premiums if he

       became so sick that he could not work.  He tells you a story about a friend who had a heart attack and was in coma

       for seven (7) months. When he came out of coma he had the mind of a six (6) year old child.You recommend that he

                 a.  Takes out a Medical Plan with B U P A                                                                d.  Add a Payor’s Death & Disability Rider to his policy.        

                     b.  Stops being so negative in his thinking                                        e.    Add a Disability Waiver of Premium Benefit to his policy.

                     c.  Add double indemnity to his policy.                                                                      f.     Add a Cancer Rider to his policy.

10.    You are visiting a client who tells you how his best friend was killed, only yesterday, in an automobile accident.