ILHI Indiana Life and Health Insurance Exam - Set 2 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: A participating policyowner wants each dividend to purchase additional protection, but only temporary protection, in an amount equal to the policy's cash value and priced at the insured's attained age. Which of the six dividend options delivers exactly that outcome?

Paid-up additions

Paid-up insurance

Accumulation at interest

One-year term insurance

Question 42: The named beneficiary on a life policy cannot be located after a diligent search, and a nephew paid the insured's funeral expenses out of his own pocket. One provision lets the insurer pay him instead. Which provision is that?

The spendthrift provision

The payment of claims time limit

The facility of payment provision

The uniform simultaneous death rule

Question 43: A borrower pledges part of her policy's death benefit to a bank as security for a business loan, intending to keep every other ownership right for herself. Which of the following types of assignment accomplishes exactly what she wants?

Collateral assignment

Absolute assignment

Irrevocable designation

Spendthrift clause

Question 44: An insured aged thirty-one holds a guaranteed insurability rider with option dates at thirty-four, thirty-seven and forty. Twins are born this spring, well before the next scheduled date. Which statement correctly describes what the rider permits in that situation?

All remaining options must be exercised

A medical examination becomes necessary

The rider terminates upon any birth

The next option date may be advanced

Question 45: A policyowner applies each annual dividend to buy small blocks of permanent insurance at the insured's attained age. Each block builds its own cash value and earns dividends of its own. Which of the dividend options produces that result?

Reduced premium

One-year term insurance

Paid-up additions

Extended term insurance

Question 46: A beneficiary elects the fixed period settlement option, and the insurer credits interest above the guaranteed rate over the following years. Her producer explains the effect of that excess interest. What happens to the size and length of her payments?

The payment stays level, the period lengthens

Both the payment and period increase

The payment shrinks, the period lengthens

The payment rises, the period stays fixed

Question 47: An insured dies while a policy loan and its accrued interest remain outstanding against the cash value of a permanent contract. The beneficiary asks what she will actually receive. Which of the following statements describes the insurer's settlement correctly?

The full face amount is paid

Face amount less loan and interest

Nothing is paid until repayment

Only the cash value is paid

Question 48: An insured who owns his own policy is hurt badly enough that he cannot work. A rider on that policy keeps the contract fully in force by taking over the premium payments for as long as the disability lasts. Which rider is this?

Payor benefit rider

Accidental death benefit rider

Waiver of premium rider

Guaranteed insurability rider

Question 49: Three insureds die in aircraft accidents: one flying his own small plane, one testing prototypes for a manufacturer, and one riding as a ticketed fare-paying passenger on a scheduled commercial airline. Whose death remains covered despite the aviation exclusion?

The private pilot

The test pilot

None of the three

The commercial airline passenger

Question 50: A policyowner stops paying premiums on her whole life policy and asks the insurer to use the guaranteed cash value to buy a single premium policy at her attained age, with permanent coverage for a smaller face amount. Which option is this?

Extended term insurance

Automatic premium loan

Reduced paid-up insurance

One-year term insurance

Struggling With Exams?

Less Time Studying, More Time Living – Finish Your Degree Faster! Pay-After-you-Pass!

Get Exam Support