SDLAHP - South Dakota Life Accident and Health Producer

Question 21: A policyowner purchases a term life policy with an added rider guaranteeing that, if the insured is living when the level term period ends, every premium she paid over the years will be refunded to her. Which rider provides this refund feature if the insured outlives the term?

cost of living rider

waiver of premium rider

return of premium rider

guaranteed insurability rider

Question 22: Shortly after delivery, an applicant decides the newly issued whole life contract does not fit her needs and wants every premium dollar returned without any penalty or surrender charge. Which provision allows a policyowner to examine a new policy briefly and cancel it for a complete premium refund?

the grace period provision

the reinstatement provision

the incontestability clause

the free look provision

Question 23: A young parent purchases a life insurance policy so that, if the parent dies unexpectedly, the family continues receiving money each month roughly equal to the parent's lost paycheck. Which of the following correctly names this primary use of the life insurance proceeds?

replacing the deceased wage earner's income

funding the deceased's outstanding business debts

paying the deceased's final estate taxes

creating an emergency fund before death

Question 24: A beneficiary wants the insurer to hold the entire death benefit on deposit and pay her only the interest earned periodically, while leaving the original principal untouched and available for withdrawal or later distribution to another party. Which settlement option matches this arrangement of holding principal while paying out interest?

the fixed amount option

the interest only option

the fixed period option

the lump sum option

Question 25: A policy's consideration clause is being explained to a group of new producers studying contract fundamentals. Which two elements does that clause identify as the value the applicant must exchange in return for the insurer's promise to provide the coverage described in the contract?

proof of insurable interest and age

medical evidence and a signed waiver

the application and the first premium

the death certificate and final premium

Question 26: A term life policy renews automatically each year without new evidence of insurability, but the premium rises annually because it is recalculated based on the insured's attained age at each renewal. Which of the following correctly names this type of term insurance?

level term insurance

decreasing term insurance

increasing term insurance

annually renewable term insurance

Question 27: A policyowner stops paying premiums on a whole life policy that has accumulated substantial guaranteed cash value over many years of payments. Which set of contractual choices guarantees that she will not simply forfeit that accumulated value, letting her instead choose among several ways to keep or receive it?

the nonforfeiture options

the settlement options

the dividend options

the riders attached to the policy

Question 28: A term policyowner exercises a policy right allowing the term coverage to be exchanged for a permanent policy without submitting new evidence of insurability, even though health has declined since the term policy was issued. Which of the following correctly names this policy right?

the renewability provision

the conversion privilege

the reinstatement provision

the nonforfeiture option

Question 29: A policyowner names her young grandchild directly as sole beneficiary without setting up any trust or naming a guardian, and years later the insured dies while the child is still legally a minor. Which practical problem commonly results from naming a minor as beneficiary without further planning like this?

the designation becomes automatically void

proceeds pass instead to the estate

a court must appoint a guardian

the insurer keeps the funds permanently

Question 30: A policyowner wants the flexible premiums and adjustable death benefit found in universal life, combined with the ability to direct cash value into self-selected investment subaccounts, accepting the resulting investment risk. Which of the following correctly names this hybrid policy type?

ordinary whole life insurance

indexed universal life insurance

single-premium whole life insurance

variable universal life insurance

Question 31: An insurer drafts every term of a life insurance policy in advance, and the applicant may only accept or reject the contract as written, without the power to negotiate individual clauses. Which of the following correctly names this characteristic of the insurance contract?

an adhesion contract

a unilateral contract

an aleatory contract

a conditional contract

Question 32: A universal life policyowner selects a death benefit design in which the face amount stays level over time, and rising cash value gradually reduces the pure amount of risk the insurer must cover. Which of the following correctly names this death benefit option?

option B, the increasing death benefit

option A, the level death benefit

a decreasing term rider

a paid-up additions option

Question 33: A beneficiary elects a settlement arrangement that guarantees payments for as long as she lives, with nothing paid to anyone after her death, even if that occurs almost immediately. Which form of the life income settlement option describes this arrangement offering the highest periodic payment but no refund guarantee?

life income with period certain

joint and survivor life income

straight life income

the fixed period option

Question 34: A beneficiary receives the full face amount stated in a life insurance policy upon the insured's death, even though no one calculates the insured's actual monetary loss the way a property claim would be measured. Which of the following explains why life insurance operates this way?

it always violates the indemnity principle

it requires proof of financial loss

it pays only actual pecuniary damages

it is a valued, not indemnity, contract

Question 35: An actuary explains that predicting the exact date any single policyholder will die is impossible, yet pooling data from millions of similar policyholders lets the company forecast the group's mortality rate with remarkable accuracy. Which of the following principles does this pooling and prediction illustrate?

the law of large numbers

the principle of indemnity

the concept of adverse selection

the doctrine of utmost good faith

Question 36: An insured becomes totally disabled and unable to work after a serious accident, and under a rider attached to her policy the insurer continues the coverage in force without requiring any further premium payments during the qualifying disability. Which rider produces this result of continuing coverage without cost while disabled?

guaranteed insurability rider

waiver of premium rider

payor benefit rider

return of premium rider

Question 37: A grandparent pays the premiums on a life insurance policy covering her young grandchild, and a rider attached to that policy ensures the premiums continue being paid automatically if the grandparent dies or becomes disabled before the grandchild reaches a specified age. Which rider protects the juvenile policy this way?

waiver of premium rider

guaranteed insurability rider

payor benefit rider

accelerated death benefit rider

Question 38: A life insurance application includes one section completed by the applicant covering personal and financial background, and a separate section completed by a medical professional recording the results of a paramedical examination. Which of the following correctly identifies this second section?

part one, the general section

an agent's report outside the application

the conditional receipt, a separate document

part two, the medical section

Question 39: A policyowner decides to terminate her whole life policy completely and requests that the insurer pay her the full accumulated cash value in one lump sum immediately, ending all coverage and future obligations under the contract. Which nonforfeiture option is she exercising by making this request?

the cash surrender option

the reduced paid up option

the extended term option

the accumulate at interest option

Question 40: A driver keeps a cell phone mounted on the dashboard for calls while driving, which slightly increases the chance of a collision, and the collision itself is the event that damages the car. Which of the following names the event that directly causes the damage?

the hazard, meaning the phone mount

the peril, meaning the collision itself

the physical hazard created by distraction

the morale hazard of casual driving

SDLAHP South Dakota Life Accident and Health Producer - Set 2 - Part 2

Question 21: A policyowner purchases a term life policy with an added rider guaranteeing that, if the insured is living when the level term period ends, every premium she paid over the years will be refunded to her. Which rider provides this refund feature if the insured outlives the term?

Question 23: A young parent purchases a life insurance policy so that, if the parent dies unexpectedly, the family continues receiving money each month roughly equal to the parent's lost paycheck. Which of the following correctly names this primary use of the life insurance proceeds?

Question 25: A policy's consideration clause is being explained to a group of new producers studying contract fundamentals. Which two elements does that clause identify as the value the applicant must exchange in return for the insurer's promise to provide the coverage described in the contract?

Question 26: A term life policy renews automatically each year without new evidence of insurability, but the premium rises annually because it is recalculated based on the insured's attained age at each renewal. Which of the following correctly names this type of term insurance?

Question 28: A term policyowner exercises a policy right allowing the term coverage to be exchanged for a permanent policy without submitting new evidence of insurability, even though health has declined since the term policy was issued. Which of the following correctly names this policy right?

Question 31: An insurer drafts every term of a life insurance policy in advance, and the applicant may only accept or reject the contract as written, without the power to negotiate individual clauses. Which of the following correctly names this characteristic of the insurance contract?

Question 32: A universal life policyowner selects a death benefit design in which the face amount stays level over time, and rising cash value gradually reduces the pure amount of risk the insurer must cover. Which of the following correctly names this death benefit option?

Question 34: A beneficiary receives the full face amount stated in a life insurance policy upon the insured's death, even though no one calculates the insured's actual monetary loss the way a property claim would be measured. Which of the following explains why life insurance operates this way?

Question 40: A driver keeps a cell phone mounted on the dashboard for calls while driving, which slightly increases the chance of a collision, and the collision itself is the event that damages the car. Which of the following names the event that directly causes the damage?

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