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1. An existing life insurance policy is sold by the policyowner to help finance the cost of a terminal illness. This is an example of:
A) A survivorship policy
B) A viatical settlement
C) A nonforfeiture option
D) An accelerated death benefit
2. What does the annuitant usually receive during the liquidation phase of an annuity?
A) Benefit payments at regular intervals
B) Nothing
C) A lump sum
D) Cash withdrawals upon request
3. A universal life insurance policy can be described most accurately as a combination of:
A) A term insurance policy and an annuity
B) A flexible premium deposit fund and a monthly renewable term insurance policy
C) An endowment policy and an interest-sensitive deposit fund
D) A mutual fund and a whole life insurance policy
4. In general practice, can the Maryland Insurance Administration inspect the business records of an insurance company or agency?
A) Yes, because all company and agency records are public domain
B) No, because only an officer of the court can inspect these records
C) No, because of privacy considerations
D) Yes, because of the powers defined by state laws
5. Which one of the following statements about participating life insurance is true?
A) The insured must be the policyowner.
B) Policyowners may be entitled to receive dividends.
C) The insurer must be a stock company.
D) Policyowners are assessed monthly for losses.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: B |
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