Management Notes

Reference Notes for Management

Insurance Quiz Part 2 – Multiple Choice Questions (MCQs) | Questions with Answers

Insurance Quiz Part 2

All Of These Statements Concerning Settlement Options Are True Except

A) rapid depletion of proceeds can be avoided
B) Proceeds can be administered be the insurance company
C ) increased proceeds can be provided through accumulation of interest
D) Only the beneficiary may select

Life Insurance Policies Will Normally Pay For Losses Arising From

a) commercial aviation
b) war
c) suicide
d) hazardous jobs

Fixed Annuities Provide Each Of The Following Except

A) Guaranteed interest
B) Retirement funds
C) Hedge against inflation
D) Tax advantage

What Would Be An Expense Factor In An Insurance Program

A) Premiums collected
B) Mortality costs
C) Opportunity costs
D) Investment interest

What Documentation Grants Express Authority To An Agent

A. Agent’s insurance license
B. Fiduciary contract
C. State provisions
D. Agent’s contract with the principal

Which Of These Statements Concerning Traditional Iras Is Correct

a) Earnings are not tax deductible
b) Earnings are taxable when withdrawn
c) Contributions are never tax-deductible
d) Contributions are always made by the employer

The Entire Contract Includes The Actual Policy And The

A) inspection report
B) warranty statements
C) provisions
D) application

In An Insurance Contract The Insurer Is The Only Party legally obligated to perform. Because of this, an insurance contract is considered

A) voidable
B) conditional
C) aleatory
D) unilateral

Which Of The Following Best Describes The MIB?

a) it’s a member organization that protects insured against insolvent insurers.
b) it’s a rating organization for health insurance.
c) it’s a non profit organization that maintains underwriting information on applicants for life and health insurance.
d)it’s a government agency that collects medical information on the insured from the insurance companies.

Which Statement Regarding The Change Of Beneficiary Provision Is True

A. The beneficiary can only be changed with the consent of the insurer
B. The policyowner can change the beneficiary
C. The insured can change the beneficiary
D. A beneficiary change is subject to underwriting procedures

Which Of The Following Is Not An Allowable 1035 Exchange

A. A whole life insurance policy is exchanged for a term insurance policy
B. A whole life insurance policy is exchanged for a Universal life insurance policy
C. An annuity is exchanged for another annuity
D. A life insurance policy is exchanged for an annuity

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