Life Insurance Test

70 Questions | Total Attempts: 224

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Life Insurance Quizzes & Trivia

The following Test is broken into 5 sections:1. Life Insurance Basics (Questions 1-8)2. Sun Life Financial Product (Questions 9-26)3. Process (Questions 27-38)4. Selling (Questions 39-55)5. Illustrations (Questions 56-70)


Questions and Answers
  • 1. 
    What is insurance?
    • A. 

      A system designed to protect people against financial hardship in the event of a loss.

    • B. 

      An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets.

    • C. 

      An instrument that signifies an ownership position in a corporation, and represents a claim on its proportional share in the corporation's assets and profits.

    • D. 

      A debt instrument issued for a period of more than one year with the purpose of raising capital by borrowing.

  • 2. 
    What type of protection does life insurance provide?
    • A. 

      Protects a person and his/her family from the financial loss incurred by a disabling illness or accident.

    • B. 

      Protects family members or business associates from the financial loss incurred by a person's death.

    • C. 

      Protects a person from outliving his/her financial resources.

    • D. 

      Insurance purchased by the owner of a vehicle to cover losses due to traffic accidents or theft.

  • 3. 
    What is an insurance premium?
    • A. 

      The difference between an insurance policies face amount and death benefit

    • B. 

      A rider that can be added on to a policy to double the death benefit

    • C. 

      The money paid by an insurance company to an insurance producer for selling a policy

    • D. 

      The amount of money required by the insurer to put an insurance policy in force and to keep it in force.

  • 4. 
    What is the definition of death benefit?
    • A. 

      The accumulation of premiums paid, with interest added and deductions made in accordance with the terms of an interest sensitive contract.

    • B. 

      The amount of insurance provided by the terms of an insurance contract usually found on the face page.

    • C. 

      The amount payable to the beneficiary upon the death of the insured. This amount may be decreased by outstanding loans or increased by dividend accumulation, riders, or supplemental benefits.

    • D. 

      The amount paid to the original producer upon the death of the insured.

  • 5. 
    What type of premium payments do Universal Life contracts allow?
    • A. 

      Fixed

    • B. 

      Face Amount

    • C. 

      Rebate

    • D. 

      Flexible

  • 6. 
    What are the two times a policy is considered to reach its maturity?
    • A. 

      1. At death of the contract owner 2. Insured survives past the maturity date in contract

    • B. 

      1. At death of insured 2. Insured survives past the first contract anniversary

    • C. 

      1. At death of insured 2. Insured survives past the maturity date in contract

    • D. 

      1. At death of the contract owner 2. Insured survives past the first contract anniversary

  • 7. 
    What is the definition of the basic insurance principle of chance?
    • A. 

      For a loss to be insurable, it must have the potential to cause a financial hardship for most people

    • B. 

      A potential loss is not considered insurable if a single occurrence is likely to cause or contribute to financial damage to the insurer.

    • C. 

      An insurer must be able to guess the probably rate of loss, or loss rate to determine the proper premium amount to charge each policyowner

    • D. 

      For a loss to be insurable, the loss should be caused by an unexpected event or an event not intentionally caused by the insured person.

  • 8. 
    What are Cost of Insurance Charges are assessed on?
    • A. 

      Cash Surrender Value

    • B. 

      Account Value

    • C. 

      Net Amount at Risk

    • D. 

      Death Benefit

  • 9. 
    Which of the following life insurance products has never been sold by Sun Life Financial?
    • A. 

      Sun Universal Protector 2010

    • B. 

      Futurity Survivorship II

    • C. 

      Sun Survivorship Universal Life

    • D. 

      Life Protect Plus

  • 10. 
    Which products are available if a client wants to convert their term policy?
    • A. 

      Sun Accumulator (only if there is no agent) and Sun Universal ProtectorPlus

    • B. 

      Sun Universal ProtectorPlus and Sun Exec UL

    • C. 

      Sun Accumulator and Futurity Accumulator II VUL

    • D. 

      Sun Accumulator (only if there is an agent) and Sun Universal ProtectorPlus

  • 11. 
    For an Economatic policy, what does "reaching the deferral year" mean and how does it impact the policies face amount?
    • A. 

      The deferral means that the face amount will drop and the paid up additions on the policy are activated and usually make up the difference for the drop in face amount.

    • B. 

      The deferral means that the client must end the contract and take the face amount as a lump sum payout.

    • C. 

      When the contract reaches the defferal year, the face amount automatically doubles

    • D. 

      When the contract reaches the defferal year, any outstanding loans on the contract must be repaid

  • 12. 
    What happens to a policy that has a loan on it if the client does not pay the loan? 
    • A. 

      No interest accrues on the loan and the value of the loan is subtracted from the death benefit.

    • B. 

      Interest accrues on the policy and is added to the loan as of the anniversary date and if not paid back the policy could overloan and lapse.

    • C. 

      If the loan is not repaid wihin one year, the client automatically forfiets the contract.

    • D. 

      Upon death of the insured, the amount of the loan is added to the death benefit amount.

  • 13. 
    If a term policy lapses and is within 60 days of the paid to date, what must be done to reinstate the policy?
    • A. 

      The policyowner must pay back premiums

    • B. 

      The policyowner must pay back premiums and submit evidence of insurability

    • C. 

      The policyowner must pay back premiums, submit evidence of insurability and sign a new contract

    • D. 

      The policyowner must pay back premiums, submit evidence of insurability, sign a new contract and go through full underwriting

  • 14. 
    The interest rate bonus on Sun Accumulator UL in excess of the current interest rate is guaranteed in all policy years:
    • A. 

      True

    • B. 

      False

  • 15. 
    The loan rate on Sun Executive UL is 4% years 1-10 and 3% years 11+. The loan rate is guaranteed at 3% years 11 and beyond:
    • A. 

      True

    • B. 

      False

  • 16. 
    Does the Sun Executive product have wash loans and if so what are the parameters?
    • A. 

      Yes, wash loans are available immediately

    • B. 

      Yes, wash loans are available after the 10th anniversary

    • C. 

      No the product doesn’t have any wash loans

    • D. 

      Yes, wash loans are available after the 15th anniversary or when the client turns age 65

  • 17. 
    If a client surrenders a Sun Executive policy, in what scenario would the client not receive the enhancement benefit?
    • A. 

      Full surrender within the first anniversary year

    • B. 

      Full surrender or an IRC 1035 exchange

    • C. 

      1035 exchange

    • D. 

      The client always receives the enhancement benefit

  • 18. 
    What is the minimum premium for the Sun Accumulator product?
    • A. 

      $10,000

    • B. 

      $5,000

    • C. 

      It varies by age and risk class

    • D. 

      There are no premium restrictions

  • 19. 
    Is there a bonus interest rate on the Sun Accumulator product? If so when does it start and is it guaranteed?
    • A. 

      There is no bonus interest rate on the product

    • B. 

      Yes. It starts in the 11th year and is not guaranteed

    • C. 

      Yes. It starts in the 11th year and is guaranteed

    • D. 

      Yes. It starts in the 15th year and is guaranteed

  • 20. 
    For the following question, use this key to choose the applicable product(s): a) Sun Executive ULb) Sun Executive VULc) Sun Accumulatord) Sun Protector Plus  Which product(s) has/have a guaranteed interest rate of 3%?
    • A. 

      A only

    • B. 

      C only

    • C. 

      A, C & D

    • D. 

      A, B, C & D

  • 21. 
    For the following question, use this key to choose the applicable product(s): a) Sun Executive ULb) Sun Executive VULc) Sun Accumulatord) Sun Protector Plus Which product(s) has/have a current interest rate of 5.05%?
    • A. 

      A only

    • B. 

      A & B

    • C. 

      C only

    • D. 

      A, B & C

  • 22. 
    For the following question, use this key to choose the applicable product(s): a) Sun Executive ULb) Sun Executive VULc) Sun Accumulatord) Sun Protector Plus Which product(s) has/have supplemental insurance rider available?
    • A. 

      A, B, C & D

    • B. 

      A & B

    • C. 

      A, B & C

    • D. 

      A only

  • 23. 
    For the following question, use this key to choose the applicable product(s): a) Sun Executive ULb) Sun Executive VULc) Sun Accumulatord) Sun Protector Plus Which product(s) has/have both definitions of life insurance, GPT and CVAT?
    • A. 

      A & B

    • B. 

      A, B & C

    • C. 

      A, B, C & D

    • D. 

      A only

  • 24. 
    For the following question, use this key to choose the applicable product(s): a) Sun Executive ULb) Sun Executive VULc) Sun Accumulatord) Sun Protector Plus Which product(s) has/have an enhancement benefit that is actuarially priced into the product, refunding a portion of fee’s to the cash surrender value?
    • A. 

      A & B

    • B. 

      A, B, C & D

    • C. 

      A only

    • D. 

      A, B & C

  • 25. 
    For the following question, use this key to choose the applicable product(s): a) Sun Executive ULb) Sun Executive VULc) Sun Accumulatord) Sun Protector Plus Which product(s) has/have an interest rate bonus available?
    • A. 

      C only

    • B. 

      C & D

    • C. 

      A, B, C & D

    • D. 

      A, C & D

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