Af University Final Exam (Associates)
- 1.
How is LQOL for Endorsements different than LQOL for new business (auto quote)?
- A.
You have no access to AccessAllstate.
- B.
There is no difference.
- C.
The LQOL for Endorsements will automatically recognize if the client has an Allstate/LBL life policy.
- D.
None of the above
Correct Answer
C. The LQOL for Endorsements will automatically recognize if the client has an Allstate/LBL life policy.Explanation
The LQOL for Endorsements is different from LQOL for new business (auto quote) because it has the capability to automatically recognize if the client has an Allstate/LBL life policy. This means that the LQOL for Endorsements can provide specific information and options tailored to clients who already have an Allstate/LBL life policy, whereas LQOL for new business (auto quote) does not have this feature.Rate this question:
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- 2.
How does the client qualify for Allstate Basic Term rates?
- A.
Have their auto insured with Allstate
- B.
Between the ages of 18-45
- C.
Own their residence
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The client qualifies for Allstate Basic Term rates if they have their auto insured with Allstate, are between the ages of 18-45, and own their residence. All of these conditions must be met in order for the client to qualify for the rates.Rate this question:
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- 3.
What riders are available on Basic Term?
- A.
Child Level Term
- B.
Waiver of Premium
- C.
Accidental Death Benefit
- D.
Accelerated Death Benefit
Correct Answer
D. Accelerated Death BenefitExplanation
Basic Term insurance typically offers a range of riders that can be added to the policy for additional coverage. The given answer, "Accelerated Death Benefit," is one of the riders available on Basic Term. This rider allows the policyholder to receive a portion of the death benefit while still alive if they are diagnosed with a terminal illness. It provides financial support to cover medical expenses or other costs during the policyholder's lifetime.Rate this question:
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- 4.
What is the coverage limit with the Primary Insured Term Rider?
- A.
30 years
- B.
10 years
- C.
20 years
- D.
The lesser of 20 years or insured’s attained age 70
Correct Answer
D. The lesser of 20 years or insured’s attained age 70Explanation
The coverage limit with the Primary Insured Term Rider is determined by the lesser of 20 years or the insured's attained age 70. This means that the coverage will be in effect for either a maximum of 20 years or until the insured reaches the age of 70, whichever comes first.Rate this question:
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- 5.
How many responses are available with LQOL when quoting an auto if the producer does not have L/H Binding authority?
- A.
Six
- B.
Five
- C.
Two
- D.
None
Correct Answer
C. TwoExplanation
If the producer does not have L/H Binding authority, there are only two responses available with LQOL when quoting an auto.Rate this question:
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- 6.
All of the following would be reasons for needing life insurance on a child Except?
- A.
Establish future insurability
- B.
Replace income
- C.
Start building an estate
- D.
Provide access to cash value
Correct Answer
B. Replace incomeExplanation
Life insurance is typically used to replace the income of a breadwinner in the event of their death. However, children do not typically have income that needs to be replaced, as they are not financially responsible for supporting their family. Therefore, the correct answer is "Replace income."Rate this question:
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- 7.
When working with an index universal life policy, the term“ floor “ is what?
- A.
The S&P Index averaging method that is used.
- B.
The maximum amount of return that is credited to policy in the current year
- C.
The maximum surrender charge
- D.
The minimum amount of return that is credited to the polcy in the current year
Correct Answer
D. The minimum amount of return that is credited to the polcy in the current yearExplanation
The term "floor" in an index universal life policy refers to the minimum amount of return that is credited to the policy in the current year. This means that even if the index performs poorly and has negative returns, the policy will still receive a minimum level of return. This provides a level of protection for the policyholder against market downturns.Rate this question:
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- 8.
What are the three databases used when underwriting a Basic Term applicatioin?
- A.
CBC, MIB and Prescription
- B.
MIB, MLB and MVR
- C.
MVR, MIB and Prescription
- D.
TTT, CBC and MLB
Correct Answer
C. MVR, MIB and PrescriptionExplanation
The correct answer is MVR, MIB, and Prescription. When underwriting a Basic Term application, these three databases are used. MVR stands for Motor Vehicle Report, which provides information about an individual's driving history. MIB refers to the Medical Information Bureau, where medical records and information about previous insurance applications can be accessed. Prescription database contains information about an individual's prescription drug history. These three databases are important in assessing the risk and determining the eligibility of an applicant for a Basic Term insurance policy.Rate this question:
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- 9.
How many Basic Term policies are allowed per customer?
- A.
One
- B.
Two
- C.
As many as you want
- D.
Four
Correct Answer
A. OneExplanation
Each customer is allowed to have only one Basic Term policy.Rate this question:
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- 10.
If you are looking for simple affordable protection that gives you the largest amount of coverage at a low initial cost, a TrueTerm may be right for you for all the following reasons Except?
- A.
You just got married
- B.
Became a new parent
- C.
Want to build some cash value
- D.
Bought a new home
Correct Answer
C. Want to build some cash valueExplanation
The correct answer is "Want to build some cash value." This is because TrueTerm policies do not accumulate cash value over time. They are designed to provide affordable protection with a large coverage amount at a low initial cost. The other options mentioned, such as getting married, becoming a new parent, and buying a new home, are all situations where having a TrueTerm policy would be beneficial for providing financial protection.Rate this question:
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- 11.
The waiver of premium rider helps to protect the insured in the case of _?
- A.
Partial disability
- B.
Accidental death
- C.
Permanent disability
- D.
Forgetting to pay your premium
Correct Answer
C. Permanent disabilityExplanation
The waiver of premium rider helps to protect the insured in the case of permanent disability. This means that if the insured becomes permanently disabled and is unable to work, the waiver of premium rider will cover the cost of their insurance premiums, ensuring that their coverage remains in effect without them having to make premium payments.Rate this question:
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- 12.
The conversion privilege on a TrueTerm policy is available for how long?
- A.
The first year only
- B.
Always ten years
- C.
As long as the insured is insurable
- D.
Ten years or the anniversary after age 60 whichever is earliest
Correct Answer
D. Ten years or the anniversary after age 60 whichever is earliestExplanation
The conversion privilege on a TrueTerm policy is available for ten years or the anniversary after age 60, whichever comes first. This means that the policyholder has the option to convert their TrueTerm policy into a permanent policy within the specified time frame.Rate this question:
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- 13.
Where is App On-line located?
- A.
AccessAllstate
- B.
Alliance
- C.
Gateway
- D.
Have no idea
Correct Answer
A. AccessAllstateExplanation
AccessAllstate is the location where the App On-line is located.Rate this question:
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- 14.
Part 2 of the life application covers what part of the applicant?
- A.
General information
- B.
Health information
- C.
Beneficiaries
- D.
Payment options
Correct Answer
B. Health informationExplanation
Part 2 of the life application covers the health information of the applicant. This section is likely to ask for details about the applicant's medical history, current health conditions, and any medications they may be taking. This information is important for the insurance company to assess the applicant's health risk and determine the premium or coverage options.Rate this question:
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- 15.
When is the best time to ask our clients about life insurance?
- A.
Only when they ask us
- B.
When we can find the time
- C.
When we know all there is to know about life insurance
- D.
Today
Correct Answer
D. TodayExplanation
The best time to ask our clients about life insurance is today because it is important to address their needs and provide them with the necessary information as soon as possible. Waiting for them to ask us may result in missed opportunities to educate and assist them in making informed decisions. Additionally, waiting until we know all there is to know about life insurance may delay the process unnecessarily. Therefore, initiating the conversation today ensures timely and proactive engagement with our clients.Rate this question:
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- 16.
Using the Life Insurance Needs Analysis (LINA) which of the following expenses are most important to consider?
- A.
Mortgage and other outstanding debts.
- B.
Funeral and other final expenses.
- C.
Capital needed for college.
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
When using the Life Insurance Needs Analysis (LINA), it is important to consider all of the mentioned expenses. Mortgage and other outstanding debts should be taken into account to ensure that there is enough coverage to pay off these financial obligations. Funeral and other final expenses should also be considered to provide financial assistance to the family after the policyholder's passing. Additionally, the capital needed for college should be considered to ensure that there is enough coverage to fund the education of any dependents. Therefore, all of the mentioned expenses are important to consider when using LINA.Rate this question:
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- 17.
Which of the following would be an example of a life event?
- A.
Attending a Taylor Swift concert .
- B.
Your young child takes his or her first step.
- C.
Getting Married.
- D.
Taking a Caribbean cruise.
Correct Answer
C. Getting Married.Explanation
Getting married is considered a life event because it is a significant milestone in a person's life. It represents a major change in their personal and social status, as well as their relationships. Marriage often involves a commitment to a long-term partnership and may also involve legal and financial implications. Unlike attending a concert or taking a vacation, getting married has a lasting impact on a person's life and is typically seen as a significant life event.Rate this question:
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- 18.
Why would you sell life insurance for a juvenile?
- A.
To insure his health.
- B.
To keep his grandparents happy.
- C.
To make sure the parents standard of living won’t be diminished.
- D.
To establish future insurability.
Correct Answer
D. To establish future insurability.Explanation
Selling life insurance for a juvenile is done to establish future insurability. By purchasing a life insurance policy at a young age, the juvenile can secure coverage for the rest of their life, regardless of any future health issues or changes in their circumstances. This ensures that they will have access to life insurance in the future, even if they develop a medical condition or engage in high-risk activities that may make it difficult or expensive to obtain coverage later on.Rate this question:
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- 19.
The Green Sheet process will increase my AF sales by…
- A.
Reviewing all of the items that you currently have insured with the client.
- B.
Finding out if they own a motorcycle.
- C.
Verifying where they live and their email address.
- D.
Finding out if they have any life insurance outside of an employer plan.
Correct Answer
D. Finding out if they have any life insurance outside of an employer plan.Explanation
By finding out if the client has any life insurance outside of an employer plan, the Green Sheet process can identify potential gaps in coverage and offer additional life insurance products to increase AF sales. This information allows the salesperson to tailor their recommendations and provide a comprehensive insurance solution to the client.Rate this question:
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- 20.
Which of the following fills a personal need for life insurance?
- A.
Saving through life insurance to help toward financial goals.
- B.
Provide supplemental retirement income.
- C.
Wealth transfer and estate or tax planning.
- D.
All of the above.
Correct Answer
D. All of the above.Explanation
All of the options mentioned in the question can fulfill a personal need for life insurance. Saving through life insurance can help individuals achieve their financial goals, providing supplemental retirement income can ensure a comfortable retirement, and wealth transfer and estate or tax planning can help individuals protect their assets and pass them on to their beneficiaries. Therefore, all of these options can address different personal needs for life insurance.Rate this question:
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- 21.
Which of the following is not true about True Term?
- A.
Minimum death benefit ages 18-45 is $200,000.
- B.
Issue ages are 18-70.
- C.
Minimum death benefit ages 46 and up is $50,000.
- D.
Any term period 10 to 30 years.
Correct Answer
B. Issue ages are 18-70.Explanation
The given statement "Issue ages are 18-70" is not true about True Term. The correct information is that the issue ages for True Term are not mentioned in the given options.Rate this question:
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- 22.
Which of the following health problems would not disqualify you immediately for Basic Term Insurance coverage?
- A.
Stroke
- B.
Diabetes
- C.
Asthma
- D.
Kidney disease
Correct Answer
C. AsthmaExplanation
Asthma would not disqualify you immediately for Basic Term Insurance coverage because it is a common and manageable health condition. While stroke, diabetes, and kidney disease may pose higher risks and require more extensive medical treatment, asthma can be controlled with medication and lifestyle changes. Insurance companies typically consider the severity and stability of a health condition when determining coverage eligibility, and asthma is generally considered a manageable condition that does not significantly impact life expectancy.Rate this question:
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- 23.
What is the best way to find people to sell life insurance to?
- A.
Just Ask all of the people who call you.
- B.
Use the Green Sheet process on every client.
- C.
Ask every person you talk to (no matter what)
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The best way to find people to sell life insurance to is by utilizing all of the mentioned methods. Asking all of the people who call you, using the Green Sheet process on every client, and asking every person you talk to (no matter what) can help maximize your chances of finding potential customers for life insurance sales. By combining these approaches, you can cast a wider net and increase your opportunities for success in selling life insurance.Rate this question:
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- 24.
Who is responsible to sell life insurance in your agency?
- A.
The Agent
- B.
LSPs
- C.
EFSs
- D.
Everyone
- E.
Correct Answer
D. EveryoneExplanation
Everyone is responsible for selling life insurance in the agency. This means that not just the agent, but also the LSPs (Licensed Sales Professionals) and EFSs (External Field Specialists) have the responsibility to sell life insurance. This indicates that the agency believes in a team approach, where all members are expected to contribute to the sales efforts.Rate this question:
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- 25.
Which of the following is true about a counter offer for Basic Term?
- A.
You can counter offer the applicant a maximum coverage amount of $75,000 at a rated price.
- B.
The basic term counter offer is valid for 30 days.
- C.
A counter offer is only available for true term.
- D.
If the client accepts the offer within 7 days they receive a 10% discount.
Correct Answer
B. The basic term counter offer is valid for 30 days.Explanation
The given correct answer states that the basic term counter offer is valid for 30 days. This means that the applicant has a period of 30 days to consider and accept the counter offer. After this time, the counter offer may no longer be available.Rate this question:
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