Af University Final Exam (Bachelors)
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Which of the following is subtracted from the death benefit of a permanent policy at the time of a claim?
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A. Outstanding policy loans
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B. Withdrawals
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C. Cash Value
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D. Both A&B
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This AF University Final Exam for Bachelors in Life Insurance covers key concepts like death benefits, characteristics of various life insurance policies including Whole Life II and Universal Life, and differentiates annuities. It assesses understanding of policy features and industry-specific riders.
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- 2.
Which of the following is not a key feature of Whole Life II?
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A. Guaranteed level premiums
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B. Permanent Insurance Protection
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C. Stream lined underwriting guidelines.
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D. Life insurance protection for a lifetime.
Correct Answer
A. C. Stream lined underwriting guidelines.Explanation
Whole Life II is a type of life insurance policy that offers guaranteed level premiums, permanent insurance protection, and life insurance coverage for a lifetime. However, it does not have streamlined underwriting guidelines. This means that the underwriting process for Whole Life II may not be simplified or expedited compared to other types of life insurance policies.Rate this question:
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- 3.
What is the maturity age for whole life II?
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90
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100
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85
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D. There is no maturity age.
Correct Answer
A. D. There is no maturity age.Explanation
The correct answer is D. There is no maturity age. This means that the policy does not have a specific age at which it matures or ends. Unlike other types of life insurance policies that have a specific term or maturity age, whole life II policies continue indefinitely as long as the premiums are paid. This allows the policyholder to have coverage for their entire lifetime, without worrying about the policy expiring at a certain age.Rate this question:
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- 4.
Which of the following is a characteristic of Universal Life (UL)?
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Flexible premium
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Flexible face amounts
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C. Most popular Lincoln Benefit Life offering.
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D. All of the Above.
Correct Answer
A. D. All of the Above.Explanation
Universal Life (UL) insurance policies offer both flexible premiums and flexible face amounts. This means that policyholders have the ability to adjust the amount they pay in premiums and the amount of coverage they receive. This flexibility allows individuals to customize their policy to meet their changing needs and financial situations. Additionally, UL policies are a popular offering from Lincoln Benefit Life. Therefore, the correct answer is D. All of the Above.Rate this question:
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- 5.
Which of the following is not a Legacy Secure Rider?
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A. Accelerated Death Benefit
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B. Children’s level term rider
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C. Accident forgiveness
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D. Coverage Protection Rider
Correct Answer
A. C. Accident forgivenessExplanation
Accident forgiveness is not a Legacy Secure Rider because it is not directly related to life insurance. Legacy Secure Riders are additional benefits or options that can be added to a life insurance policy to provide extra coverage or protection. Examples of Legacy Secure Riders include accelerated death benefit, children's level term rider, and coverage protection rider. Accident forgiveness, on the other hand, is typically associated with auto insurance and is not applicable to life insurance policies.Rate this question:
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- 6.
Which of these is not a characteristic of an Annuity?
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A contract issued by an insurance Co.
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B. A savings vehicle that can be either fixed or variable in investment style.
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C. Can be looked at as a spending account.
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D. A product that has a guaranteed death benefit.
Correct Answer
A. C. Can be looked at as a spending account.Explanation
An annuity is a contract issued by an insurance company that serves as a savings vehicle, which can be either fixed or variable in investment style. It also provides a guaranteed death benefit. However, it is not accurate to say that an annuity can be looked at as a spending account. An annuity is primarily used as a means of accumulating funds for retirement, rather than for day-to-day spending.Rate this question:
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- 7.
Which of the following annuity products are not offered by Allstate Financial (AF)?
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A. Allstate Good Hands Annuity
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B. Allstate Growth Protector
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C. Allstate Income Protector
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D. ProSaver Secure II
Correct Answer
A. A. Allstate Good Hands AnnuityExplanation
Allstate Financial (AF) does not offer the Allstate Good Hands Annuity.Rate this question:
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- 8.
Underwriting questions allow the company to determine all of the following except.
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Purpose of Insurance
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B. Health status of the individual
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C. Congenital birth defects
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D. Whether the requested amount of insurance is reasonable.
Correct Answer
A. C. Congenital birth defectsExplanation
Underwriting questions are used by insurance companies to assess the risk associated with insuring an individual. These questions help the company determine various factors such as the purpose of insurance, the health status of the individual, and whether the requested amount of insurance is reasonable. However, congenital birth defects are not typically considered in underwriting questions as they are pre-existing conditions that are present at birth and are not influenced by the insurance coverage.Rate this question:
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- 9.
Allstate Tobacco Classifications include all of the following except.
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A. Super preferred elite – no tobacco for 10 years.
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B. Preferred elite—no tobacco for 5 years
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C. Standard select (term plan only) no tobacco for 2 years
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D. Standard nonsmoker—No tobacco for 1 year
Correct Answer
A. A. Super preferred elite – no tobacco for 10 years.Explanation
The Allstate Tobacco Classifications include different categories based on the duration of time that a person has not used tobacco. The categories mentioned in options B, C, and D all specify the number of years that a person must be tobacco-free in order to qualify for that classification. However, option A states "no tobacco for 10 years," which is not a category mentioned in the Allstate Tobacco Classifications. Therefore, option A is the correct answer as it is the only one that is not included in the Allstate Tobacco Classifications.Rate this question:
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- 10.
Which of the following is not a characteristic of the Sherlock Underwriting Program?
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Only available to applicants age 25-69
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B. For face amounts from $100,000 to $5,000,000.
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C. Available on all types of life insurance.
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D. Is automatically applied by underwriting.
Correct Answer
A. C. Available on all types of life insurance.Explanation
The correct answer is C. Available on all types of life insurance. This means that the Sherlock Underwriting Program is not available for all types of life insurance policies. It is limited to certain types or does not cover certain types of life insurance policies.Rate this question:
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- 11.
What is the guaranteed minimum interest rate that is paid on a legacy Secure Universal Life Policy?
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A. 2.5%
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B. 3%
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C. 3.5%
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D. 4%
Correct Answer
A. B. 3%Explanation
The guaranteed minimum interest rate that is paid on a legacy Secure Universal Life Policy is 3%.Rate this question:
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- 12.
The Liquidity rider is:
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A. An option to have a percentage of the premium payments refunded if the customer owns a qualifying policy and decides to surrender the policy on or after the 7th anniversary.
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B. Allows you to use your cash value in your universal life policy to make house payments when you are facing a hardship to avoid foreclosure.
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C. Allows checking privlages on your cash value on your Universal Life Policy.
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D. Allows you to stop making payments on your Universal Life Policy and have the Cost of Insurance come out of your cash value.
Correct Answer
A. A. An option to have a percentage of the premium payments refunded if the customer owns a qualifying policy and decides to surrender the policy on or after the 7th anniversary.Explanation
The Liquidity rider provides the option for a percentage of the premium payments to be refunded if the customer decides to surrender the policy on or after the 7th anniversary. This means that if the customer no longer wants or needs the policy, they have the opportunity to receive some of their premium payments back. This can be a valuable feature for individuals who may have a change in financial circumstances or no longer require the coverage provided by the policy.Rate this question:
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- 13.
Legacy Secure SL is for individuals interested in …
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A. Traditional estate liquidity
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B. Providing for an impaired child
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C. Wealth Transfer / Charitable gifting
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D. All of the above
Correct Answer
A. D. All of the aboveExplanation
Legacy Secure SL is a solution that caters to individuals interested in traditional estate liquidity, providing for an impaired child, and wealth transfer/charitable gifting. It encompasses all of these aspects, making it a comprehensive option for those looking to address these specific needs.Rate this question:
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- 14.
Which policy does not include the Accidental Death Benefit Rider?
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A. True Term
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B. Legacy Secure
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C. Legacy Secure SL
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D. Ultra Plus
Correct Answer
A. C. Legacy Secure SLExplanation
The Accidental Death Benefit Rider is not included in the Legacy Secure SL policy.Rate this question:
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- 15.
Which of the following is not a death benefit option for Ultra Plus?
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A. Death benefit equals the face amount
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B. Death benefit equals the face amount plus the policy value
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C. Issue ages 0-69. Death benefit equals the face amount plus premiums paid, less any partial withdrawals
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D. Death benefit equals face amount plus dividends.
Correct Answer
A. D. Death benefit equals face amount plus dividends. -
- 16.
Which of these is not a target market for Ultra Plus?
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A. Individual who want permanent life insurance protection with minimal death benefit.
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B. Looking for a vehicle for a deferred compensation plan.
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C. looking for the opportunity for aggressive returns on cash value
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D. All of the above
Correct Answer
A. C. looking for the opportunity for aggressive returns on cash valueExplanation
The correct answer is C. "looking for the opportunity for aggressive returns on cash value." This is not a target market for Ultra Plus because Ultra Plus is a permanent life insurance product that focuses on providing life insurance protection with minimal death benefit. It is not designed to offer aggressive returns on cash value.Rate this question:
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- 17.
The Overloan Protection Rider
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A. Can be issued for all ages.
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B. When exercised, prevents the underlying policy from lapsing in the event policy loans exceed the policy value.
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C. When exercised triggers a one-time charge of no more than 4.5% of the policy value.
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D. All of the above.
Correct Answer
A. D. All of the above.Explanation
The correct answer is D. All of the above. This means that the Overloan Protection Rider can be issued for all ages, it prevents the underlying policy from lapsing when policy loans exceed the policy value, and it triggers a one-time charge of no more than 4.5% of the policy value.Rate this question:
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- 18.
Which of the following is not true of the Guaranteed Insurability Rider?
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A. Issue ages are0-38 (standard or better rate classes)
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B. Rider provides the opportunity to add additional insurance without underwriting requirements at preset dates
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C. Can exercise an unscheduled increase when you purchase a new car.
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D. Cannot be added, increased or decreased after issue.
Correct Answer
A. C. Can exercise an unscheduled increase when you purchase a new car. -
- 19.
What is the Ultra Plus grace period?
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30 days
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There is no grace period
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45 days
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61 days
Correct Answer
A. 61 daysExplanation
The Ultra Plus grace period is the amount of time given after a certain event or deadline during which no penalties or fees will be imposed. In this case, the correct answer is 61 days, meaning that individuals with an Ultra Plus plan have 61 days to make a payment without incurring any additional charges.Rate this question:
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- 20.
Which of the following are Annuity phases?
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Accumulation Phase
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B. Growth Phase
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C. Payout Phase
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D. Both A and C
Correct Answer
A. D. Both A and CExplanation
The correct answer is D. Both A and C. The accumulation phase refers to the period when an individual contributes money into an annuity, allowing it to grow over time. The payout phase, also known as the distribution phase, is when the individual starts receiving regular payments from the annuity. Both of these phases are important components of an annuity.Rate this question:
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- 21.
Who is our approved paramed vendor?
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Exam One
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B. Portamedic
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C. Phlebotek
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D. Field Health
Correct Answer
A. Exam OneExplanation
Exam One is the approved paramed vendor.Rate this question:
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- 22.
What is a 1035 exchange used for?
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A. Transferring prior underwriting from one policy to another
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B. Transferring funds from one policy to a new policy.
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C. Transferring funds from policy holder to beneficiary.
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D. None of the above.
Correct Answer
A. B. Transferring funds from one policy to a new policy.Explanation
A 1035 exchange is a provision in the tax code that allows policyholders to transfer funds from one insurance policy to another without incurring taxes on the investment gains. This can be beneficial for individuals who want to change insurance policies but do not want to lose the tax advantages they have already gained. Therefore, the correct answer is B. Transferring funds from one policy to a new policy.Rate this question:
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- 23.
Medical and Paramedical requirements are determined by which of the following?
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Age
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B. Amount of death benefit applied for
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C. Risk involved in insured’s vocation
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D. Both A and B
Correct Answer
A. D. Both A and BExplanation
The medical and paramedical requirements for insurance coverage are determined by both the age of the insured individual and the amount of death benefit they have applied for. Age is a factor because older individuals may have more health issues or be at a higher risk for certain conditions. The amount of death benefit applied for is also important because higher amounts may require more extensive medical evaluations to assess the risk involved. Therefore, both factors play a role in determining the medical and paramedical requirements for insurance coverage.Rate this question:
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- 24.
Which of these is not a requirement the proposed insured must meet to be placed in a certain rate class?
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Build
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Family History
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High Risk Avocation
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Driving Record
Correct Answer
A. High Risk AvocationExplanation
The proposed insured must meet certain requirements to be placed in a certain rate class, such as having a certain build, a favorable family history, and a good driving record. However, having a high-risk avocation is not a requirement for being placed in a certain rate class.Rate this question:
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- 25.
Which of the following are Financial Underwriting Requirements for high face amount policies?
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A. Inspection Reports
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B. Business Financial Statements
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C. Consumer Database Verification
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D. All of the above.
Correct Answer
A. D. All of the above.Explanation
The correct answer is D. All of the above. Financial underwriting requirements for high face amount policies include inspection reports, business financial statements, and consumer database verification. These requirements are necessary to assess the financial stability and credibility of the applicant, as well as to determine the risk involved in issuing a policy with a high face amount.Rate this question:
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Current Version
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Feb 28, 2024Quiz Edited by
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May 01, 2013Quiz Created by
Alison Anderson
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