Lia Course Flashcards
(178 cards)
1
Q
An agent may held criminally liable for authorized actions that can be held to “bind” his company. Which of the following does not apply?
A
F. None of the above
2
Q
The insurance commissioner has the power to revoke or refuse to renew an agent’s for his license in all the following instances except:
A
C. When the agent makes any material misrepresentation to his policyholders of the amount of commissions that he has made or may make on particular insurance contract.
3
Q
The insurance commissioner has the power to revoke or, renew an agents’s license in all of the following except:
A
D. When the agent influences the applicant’s choice of plan to be purchased.
4
Q
Which of the following statements is NOT correct?
A
F. It is not illegal to sell life insurance policies without a Certificate of Authority issued by the Insurance commission while still under training.
5
Q
- Which of the following statements is NOT correct?
A
E. When a policy lapses the company neither gains or loses since it ceases to carry the risk of covering the insured.
6
Q
- Which of the following statements is NOT correct?
A
F(choice) — either — A( obviously correct) When a policy lapses the agent loses all future commission on renewal of premiums.
7
Q
Which of the following statements is NOT correct?
A
F. People value their lapsed policy documents.
8
Q
Which of the following statements is correct?
A
F. Orphan policy owners are good sources of prospects and new sales.
9
Q
- Which of the following is NOT correct?
A
F. The primary job of an agent is to squeeze as much money as possible out of making a new sale.
10
Q
- Which of the following is NOT correct?
A
F. In case when a contestable claim is settled the company reverses the agents’s commission.
11
Q
- For a given policy, the total of twelve monthly premiums is greater that the annual premium. Which of the items below is not a reason for this?
A
F. Premiums are calculated on an annual basis.
12
Q
- Which of the following is NOT correct with respect to the reinstatement process?
A
E. Written assurance of intent to keep the policy in force
13
Q
- Which of the following is correct with respect to the due date of a policy loan?
A
B. There is no specific repayment date
14
Q
- Which of the following is NOT a non- forteiture Option?
A
B. Interim insurance
15
Q
- Which of the following statements about the premium paying provision of a policy is NOT true?
A
B. Permits the insured to change the amount of the premium
16
Q
- Which of the following statements best describes the Automatic premium loan provisions?
A
C. A provision whereby the company automatically pays the premium out of the loan value and charges it as loan to the insured, if the said premium due is not paid within the grace period.
17
Q
- Mr Castro owns P2,000,000 life insurance policy with his wife as the primary beneficiary. He takes out P1,000,000 loan from the bank and makes a collateral assignment on his policy. He pays back P2,000,000 before he dies. Which is the correct action of the insurance company?
A
A. P800,000 to the bank and P1,200,000 to his widow
18
Q
- Mr. Gonzales bought a P25,000 whole life policy and stated that he was 35 years old. His annual premium was P500,00. After his death the company learned that he was actually 40 years old when the policy was issued. The annual premium for his policy at the correct age was P625.00. which of the following was the correct amount for the company to pay?
A
C. P20,000 which is the amount that P500 would have bought at the correct age.
19
Q
- Which of the following is the usual automatic Non- forfeiture Option?
A
D. Extended insurance
20
Q
- Which of the following statement is not true of an “Absolute Assignment”?
A
C. The insurer must be informed prior to effecting the desired absolute assignment of the policy.
21
Q
- The insured lets a P100,000 non-participating lapse after only one year. If he had surrendered the policy at the time which of the following would probably have been available?
A
A. Usually nothing
22
Q
Which of the following statements concerning beneficiary provisions is incorrect?
A
D. The beneficiary must notify the agents of the insured’s death.
23
Q
The settlement option provision may provide all of the following except:
A
C. Proceeds held by the company with interest payable to the beneficiary on request.
24
Q
- Non- forfeiture provisions are include in whole life and endowment policies to assure the policy owner that certain minimum policy benefits shall remain with him even under certain Changed conditions. Non- forfeiture values guarantee to the policyholder that:
A
C. Any guaranteed policy values will belong to the policy owner even if premium payments are discounted.
25
In a life insurance company, risk appraisal us necessary to
B. Prevent any anti-selection
26
26. A term policy provides
A. Low cost protection only for a limited term of years with no savings.
27
27. An endowment policy provides
C. The highest level of savings for the insured within a specified term of years.
28
28. A whole life policy provide:
D. Protection with premiums payable for life and a low level of savings as an alternative to continued protection in old age.
29
A limited pay life policy provides:
B. Protection for the life of the policyholder with premiums payable for a limited of years.
30
30. A prospect tells you that he wants the highest coverage possible for the least annual cash outlay. Would you offer him
C. A term policy
31
31. You are selling a policy to a client who tell you that he is worried about how he would pay that premium if he became so sick that he could not work. He tells you a story about a friend who had a heart attack and was in coma for 7 months. When he came out of coma he had the mind of a child of six years old. You recommend that he
E. Add a Total disability waiver of premium benefit to his policy
32
32. You are visiting a client who tells you how his best friend was killed only yesterday in an automobile accident. You recommend that he
C. Add double indemnity to his policy.
33
33. You have a client who has a policy with you for P1,500,000 and asked you to prepare a plan for P100,000 on the lives of each of his kids aged 9, 7 and 4 years old. You recommend that he
D. Add a Payor's Death & Disability Rider to his policy
34
34. A prospective client tells you that his father bought him a policy when he was a boy. He was only 8 years old when his father died but his policy remained in full force and he did not have to pay premiums until he was 25 years old. His father must have
D. Add a Payor's Death & Disability Rider to his policy.
35
35. A client tells you that his bank wants him to use his life insurance policy so that his bank loan will be paid off if he dies. You recommend that he
E. Make a collateral assignment
36
36. A client has a policy with you for P1,000,000 which is payable to his estate and he tells you that he wants his wife to receive this money free from estate tax. You recommended that he
A. Appoint an irrevocable beneficiary
37
37. When a premium on a permanent policy in force for more than three (3) years is not paid on the due date it goes under
C. Reduced Paid-up Insurance Option
38
38. In a case where the premium has not been paid and the cash value has been exhausted the policy can still avail of
F. The Reinstatement Provision
39
39. A policy that is in force for les than the original sum assured with no indebtedness has availed of
C. Reduced Paid-up Insurance Option
40
40. A policy that is still in force for a reduced death benefit due to indebtedness because premiums have not been paid for sometime has availed of
B. Automatic Premium Loan Provision
41
41. A policy that is still in force for the full face amount and will remain in force for a further period of four years and 118 days without the payment of any premiums. It has availed of
A. Extended Term Insurance provision
42
42. In group insurance it is assumed that every member of the group is insurable provided that:
C. Every member of the group is working a minimum number of hours
43
43. The most common type of group insurance sold in the Philippines is
E. Group yearly renewable term
44
44.Group Yearly Renewable Term
E. Is the lowest cost of life plan available
45
45. Group Life Insurance covers
D. Death of the employee regardless of cause except suicide during the first year (sometimes two years)
46
46. Most group term policies are:
C. On a yearly renewable term basis
47
47. Sound underwriting practice bring about favorable
C. Profit allowance
48
48. The primary purpose of the medical examination is to develop
A. Health History
49
49. When filling out the application form you obtain many facts about the applicant such as his date of birth, place of birth, business address, position title and length of services. Which of the following sensitive areas does this information cover?
B. Occupation
50
50. The inspection report on an application reveals that he live with his wife and two children in a well-appointed residence. He is well respected in the community where he has done much work to promote scuba diving among the local children. He has even been known to lend them his own equipment. No bad habit were revealed. Which of the following factors need special consideration?
F. Avocation
51
51. The inspection report shows that the applicants is single and lives at the captioned address with his girlfriend who is also single. He is well liked in the neighborhood. It is reported that he has another lady friend in Malabon. He usually returns home in early hours of the morning from the casino where he works as a "Blackjack" dealer. He is not known to take alcoholic drinks. Which of the following factors has to be considered?
B. Occupation
52
52. An applicant has named his wife a beneficiary under his application. The inspection confirms that he is legally married to his wife and that he also supports another lady with whom he has fathered six children. It is reported that he lives contentedly with his wife and two young children. He holds a responsibilities position as Vice President of a bank. Which of the following risk areas have to be considered (one only)?
E. Moral
53
53. An application form and the agent's report on the back reveals the following information age: 41, Residence: Zambales City, Beneficiaries primary-wife, secondary-three children, Occupation-barter trader, annual income P200,000 plus, occasionally flies by chartered plane. Which of the following risk factors has to be considered?
B. Occupation
54
54. A prospect tells you that he is interested in having a life coverage with a high level of savings by age 65. Would you offer him
B. An endowment policy?
55
55. A prospect tell you that he wants to be insured for life but he does not want to pay premiums after he retires at age 65. Would you offer him
E. A life paid-up at age 65 policy?
56
56. A prospect tell you that he wants to be insured at age 65 but he does not want to pay more than the minimum possible level of premiums. Would you offer him
C. A term policy
57
57. A prospect tells you that he wants to be insured for life at the least annual cost until he dies. What would you offer
A. A whole life policy?
58
58. A prospect tells you that he has a loan with a financial institution and he would like an insurance company to pay for it off if he dies, but he is hard-up and he wants this coverage at the lowest possible cost. Would you offer him
C. A term policy
59
59. A prospect tells you he wants the maximum possible provision for his retirement with no life coverage. Would you offer him
F. None of the above
60
60. An " immediate Annuity" is:
C. An arrangement where a person can pay a Life insurance company a sum of money in return for a pension for life.
61
61. An "Immediate Deferred Annuity" is:
F. A one-time payment for a pension to start at a pre-determined date.
62
62. A"Retirement Annuity" is:
E. A kind of regular annual savings arrangement to provide pension for life with no life coverage.
63
63. Which of the following statements is incorrect?
B. Because of its very short duration the cash value of a yearly renewable term policy grows very fast.
64
64. Which of the following is incorrect?
B. Child Insanity Rider
65
65. Which of the following statements about a "Disability Waiver of Premium Rider" is incorrect?
C. The insured has to die while disabled.
66
66. A life insurance program is define below:
D. A planned insurance estate
67
67. A clean-up fund would be used to provide for all the following except:
C. Life income for the widow
68
68. A persons human economic value is defined as the
C. Total value of assets and any future earnings delivered therefore.
69
69. Which of the following statement is incorrect?
A. It is good practice to encourage an insured to appoint his minor child as an irrevocable beneficiary.
70
70. Which of the following does not have a legitimate insurable interest?
D. An individual on the life of his mistress
71
71. Limited payment life policies are called such because these policies
C. Limit the period when benefits may be paid.
72
72. When the death benefit of a policy is restricted in amount during the early years of the policy, this restriction is known as
C. A lien
73
73. A misrepresentation in the application form is considered to be material if
D. The insurance company would have altered its risk appraisal decision had the truth been known.
74
74. A fiduciary relationship exists between the life insurance agent and his prospect. Such a relationship would normally exist between a
D. Stock broker and a potential investor
75
75. An agent who determines a prospect's complete financial requirements preparatory to offering him a policy is using the selling approach known as
C. Total needs selling
76
76. A policyholder with a whole life policy has reached the age of 65 and he does not want to go on paying premiums but he does want to remain insured for life. Which of the following would he take?
E. Paid-up insurance (reduced amount)
77
77. An applicant wants a participating policy where the death benefit will be maximized. Which of the following should he choose?
F. Paid-up addition
78
78. If a policyholder wants to remain insured for the full amount for as long as possible but he does not want to pay any more premiums. Which of the following should he choose?
C. Extended term insurance
79
79. When a policyholder has to pay his premium and interest which of the following has he availed of?
B. Loan value
80
80. A policy which permits the policyholder to vary the level of premium or the sum insured, and has its cash values dependent upon investment performance and level of premiums paid is known as a (an) policy.
E. Universal life
81
81. A policy that provides guaranteed cash values plus extra annual distributions and pays the Insured after a specified time known as a (an) policy.
B. Participating endowment
82
82. A policy that has its "living values" tied to the performance of real estate investment fund is known as a (an) policy
E. Universal life
83
83. A Life insurance company arranges to provide retirement benefits for the employees of manufacturing corporation with no life coverage. This arrangement would known as
F. Group deposit administration
84
84. A policy that insures for life and provides for probable payments in excess of the sum insured is known as a (an) policy.
A. Participating whole life
85
85. A policy that may provide for an increase or decrease in the sum insured and/or the level of premium payments and has the savings portion tied to a common stock fund with no guaranteed values.
E. Universal life
86
86. The proper management of a company's assets is necessary to achieve the essential
B. Investment yield
87
87. The three crucial aspects in the successful running of a Life Insurance company are mortality, investment yield and
F. Expense control
88
88. Bonds, mortgages, stocks and government securities all contribute to
B. Investment yield
89
89. The introduction of computer, non-medical underwriting and energy conservation measures greatly influence the company's
F. Expense control
90
90. The quality of medical examination will affect
E. Mortality
91
91. Non-productive agents in a company affect
F. Expense control
92
92. A widow, the beneficiary of a life policy, tell you that she wants all the money that she can get now. Which of the following do you recommend?
F. None of the above
93
93. A policyholder tells you that if he dies before his son reaches the age of majority he wants the Life insurance company to hold the sum insured until the son has reached the age of majority. Which of the following do you recommend?
F. None of the above
94
94. Not with standing various possible legal impediment, if the owner of an endowment
policy at age 65 tells you that at the maturity of the policy he wants to provide his church with a monthly donation for as long as the church exists. Which option do you recommend?
A. Interest option
95
95. The widow of your policyholder tells you that she does not want a lump sum payment but she would like to receive monthly allowance for the rest of her natural life, which option do you recommend?
C. Fixed period option
96
96. You have an application from a single man age 34 who is living-in with his single girlfriend. They do not have any children. During the interview he tells you about his college days and how he was once arrested on suspicion of "pushing" drugs. He says the case was dropped for lack of evidence. He owns an MG sports car and enjoys driving with his girlfriend to Baguio almost every weekend. Which of the following would you consider?
A. Health History
97
97. In completing his "Non-Medical" application form, an agent reports that the applicant was operated on for appendicitis at the Medical Center on 29th July, 1984. Discharge after 6 days as cured. What has he failed to include?
B. Doctor's name and address
98
98. The "Non-Medical Form" submitted by an a agent reveals that the applicant consulted Dr. A. Medico on 15th August 1985 for stomach ache and was admitted to the Delgado Clinic on 200 August where he had a gastro-intestinal examination and was discharged the next day. There have been no further complaints. Which of the following has been omitted?
F. Result and date of recurrence, if any
99
99. An applicant states that he had a personal check-up at Lourdes Hospital, San Juan on 23rd January, 1985 and had a blood examination, stool and urine examination, a chest X-ray and an E.C.G. He was examined as an outpatient. Dra. M. Bruhas, his doctor has her clinic at the same hospital. She told him that he had "weak lungs". What was omitted?
D. Diagnosis and treatment
100
100. On 1st April that applicant was operated on by Dr. Cutituot at the Waterous Hospital, San Juan for a stomach problem. He was discharge on 10th April as cured and he had no problems since. Which of the most important pieces of information has been missed?
D. Diagnosis and treatment
101
101. (The).
involves uncertainly as to the happening of an event which may produce a loss but which involves no possibility of gain.
B. Law of large numbers
102
102. Statistic showing the number of deaths per one thousand lives at each age from birth to some upper age such as 100 are contained in (a/an/the)
E. Mortality table
103
103. An insurance contract would be unlawful unless the person to whom the insurance proceeds would be paid had (a/an/the)
D. Insurable interest
104
104. Premium payment in the form of "Post-dated checks" for a premium due or about to be due is?
B. Acceptable provided that no receipt is issued before the date of the check
105
105. Most "Binding Receipts" or "Binding Certificates" have the following provision except
D. a minimum amount of coverage
106
106. The owner of a maturing endowment policy wishes to use his policy to provide a monthly income to pay for the board and lodging and tuition of his grandson for the next four years. Which option do you select?
C. Fixed period option
107
107. An applicant tell you that he does not want his wife to receive the sum insured because some other guy might marry her just to get the money. He just wants her to receive the maximum monthly pension for her life. What do you recommend?
E. Life annuity option
108
108. The beneficiary, a widow, wishes to pay off the remaining 10 years balance of a 15 years mortgage. Which of the following options do you recommend?
F. None of the above
109
109. The family income rider is a modified form of
B. Decreasing term
110
110. Which level benefit term policy requires least the initial annual cash outlay?
F. Yearly renewable term
111
111. A typical mortgage redemption policy is a form of
B. decreasing term
112
112. Jun Reyes took out a term loan for seven years with a "Balloon" payment at the end of the period. The lending financial institution requires that he take out a level life coverage. What do you recommend?
F. Yearly renewable term
113
113. A young professional is worried about how he can provide adequate life coverage against his future earning power in view of his present low salary level. He must have the lowest initial annual cash outlay. What do you recommend?
F. Yearly renewable term
114
114. A businessman has arranged for a development loan which will be available one year from now. Because he is unable to wait until then he has arranged an interim loan with his bank. The only problem is that the bank wants the loan secured against the risk of his death. What is the most economic arrangement that you can recommend?
F. Yearly renewable term
115
115. A prospective buyer wants to take out a policy for P500,000 to be paid to his mistress with whom he does not have any children. He does not want his wife and six children to know about his arrangement. You recommend that he
F. None of the above
116
116. A corporate president with the approval of the Board of Directors tells you that a key executive is retiring and that he would like to give the life insurance policy that the corporation has on this man's life to the man to do whatever he wants. This policy was originally taken to compensate the company for the loss of this man's services if he had died when he was younger but it is no longer required because the man is about to retire. You recommend that he
B. Make an absolute assignment
117
117. A man made his wife his irrevocable beneficiary and if she died before him then his children were each named as irrevocable beneficiaries. Which of the following best describes the classification of the children?
D. Revocable secondary beneficiary
118
118. Your client tells you that when his father died he received a P500,000 free of estate tax and that he has not even know that this policy existed.Which of the following classification did your client fall under?
A. Irrevocable primary beneficiary
119
119. You visit a prospective client who tells you that he does not believe in life insurance because when his mother died he was a beneficiary under her life policy and most of the money went to pay estate tax because her agent had made a mistake. Only this man and his sister were named in the policy. Which of the following did they fall under?
B. Revocable primary beneficiary
120
120. When a company insists upon its agents working to a high standard of performance and integrity it is also working
B. In the public interest
121
121. The "Golden Rule of Professionalism" as an agent is to always do for others what he would want to do for himself. This is another way of saying that he should work
D. In the client's best interest
122
122. An agent should not think about how to sell the plan that pays the highest rate commission because he should be selling whatever is
D. In the client's best interest
123
123. If a policyholder wants to get the maximum immediate value from his non-participating policy by surrendering it, which of the following would he get?
A. Cash value
124
124. An applicant wants to get a participating policy which will have the maximum cash available emergencies. Which of the following should he select
D. Accumulated dividend
125
125. A participating policy has at least four (4) dividend options and it is important that you know each of them by their correction option number. Which of the following is the "Fifth Dividend Option"?
F. To buy yearly renewable term equal to the premium paid or the cash value with any extra remaining on deposit with the company and earning interest at a rate to be declared by the company from time to time.
126
126. A participating policy usually has up to five dividend options and it is important that you should know each of them by their correct Option number. Which of the following describes the "First Dividend Option"?
A. Paid in cash
127
127. A participating policy usually has up to five dividend options and it is important that you should know each of them by their correct option number. Which of the following describes the "Second Dividend Option"?
B. To reduce the premium due
128
128. A participating policy usually has up to five dividend options and it is important that you should know each of them by their correct option number. Which of the following describes the "Third Dividend Option"?
E. To remain on deposit and earn interest at a rate to be declared by the company
129
129. A participating policy usually has up to five dividend options and it is important that you should know each of them by the has up to five dividend options and it is important that you should know each of them by their correct Option number.Which of the following describes the "Fourth Dividend Option"?
C. To purchase pad-up bonus additional insurance
130
130. A father has his present life insurance payable to his estate and because he had retired he wants to pass the policy on to his son will assume the premium payments. Which of the following will he have to appoint his son to achieve his desire and protect the son from estate tax liability?
C. Absolute assignee
131
131. Giving art of my commission to client is
E. In violation of the law
132
132. By developing a large number of satisfied clients I am doing a good job for my company and I am also working
B. In the public interest
133
133. The supervision of the insurance industry by the Insurance Commissioner is
B. In the public interest
134
134. Inherent in life insurance is the concept of where a group of people places funds together in preparation for life's many uncertainties
F. Risk sharing
135
135. In determining the number of people dying or living at a particular age within a given period we use the principle of
C. Probability
136
136. For anyone to have the benefit of compensation on the value of the life of someone else there must be an established
D. Insurable interest
137
137. According to (the) be found to follow a predictable pattern if enough such happening are observed. events which happen seemingly by chance will actually
B. Law of large numbers
138
138. In certain situations a company may file interpleader action with a Court of Law. This remedy is used to
C. Decide conflicting claims on the same insurance proceeds.
139
139. A yearly renewable term life insurance policy generally specifies that
D. Premiums shall increase every time the policy is renewed
140
140. Substandard premium rates are charged
C. Applicants who carry a higher health or occupational risk
141
141. Decreasing term insurance may take the form of a
B. Mortgage redemption policy
142
142. The company will allow a policy change from a higher premium to a lower premium plan provided the insured
C. Presents satisfactory evidence of insurability
143
143. In theory, endowment insurance is combination of
A. Level term and pure endowment
144
144. In most companies the agent's role in marketing group life insurance is limited to
A. Securing the necessary appointment for the home office group marketing people
145
145. Which of the following statement about persistency is incorrect?
D. Losses due to lapses are negated by saving in agent's commissions
146
146. A life insurance agents may get involved in state planning where the main objective is to
E. Provide the liquidity to settle the estate
147
147. The extent of medical evidence required is determined by
D. The age of the applicant and the proposed sum to be insured
148
148. The term "Quality Business refers to those policies which
A. Are persistent ad demonstrate good mortality experience
149
149. Some life insurance companies utilize the postdated check method of
B. Premium payment
150
150. Record keeping is essential for new agents who will sell
D. All life and health insurance
151
151. Insurable interest must exist
A. At the inception of the policy
152
152. All of the following statements concerning repeat business are correct except:
C. Repeat business never leads to further repeat Business
153
153. All of the following apply under the beneficiary provision, except:
C. The beneficiary must notify the company of the insured's death within 24 hours
154
154. In a policy where an irrevocable beneficiary has ben designated, the insured, without the beneficiary's permission, can
C. Discontinue premium payment
155
155. The following statements concerning insurable interest are correct, except:
A. It is not important for purposes of underwriting the risk
156
156. The conservation of a life insurance is dependent on all of the following except
B. Level of first year commission
157
157. The insured's named a primary and secondary revocable beneficiary for a P 20,000 policy. Which of the following is true?
D. The insured can add a third party beneficiary at any time
158
158. An insured has a P 100,00 whole life policy with ADB. He requested that it be placed under the reduced paid-up option with a value of P 25, 000. If he was subsequently killed in an accident which of the following amounts would the beneficiary receive.
D. P 25,000
159
159. All of the following statements concerning repeat business are correct except
D. Repeat business creates excessive premium costs and therefor early lapsation.
160
160. Some insurance companies charge female a lower premium rate than for males
C. Women have longer life expectancy than men
161
161. The maximum period for backdating a policy to save on age is
C. Six months
162
162. The incontestability clause
C. Prevents the company from denying a claim after the policy has been in force for two years
163
163. If a policy did not contain the name of a beneficiary, the proceeds would be paid to the insured's
D. Estate
164
164. Which of the following statements is correct with respect to policy loan?
D. Policy loans should be resorted to only as a matter of dire emergency.
165
165. Mr. Kulang walked out of his house one night and was never heard again. His wife wanted to make a claim on his life insurance policy as she believes he is dead.
Which of the following statements is correct in this case?
D. IT would be seven years before the court could declare him legally dead.
166
166. Which is the rider that is often attached to juvenile policies
C. Payor's death or disability waiver
167
167. A housewife without gainful employment applies for a P 500,000 life coverage. Which of the following should the agent do?
B. Examine the adequacy of the husband's insurance coverage
168
168. If a policyholder elects to take the Extended Term Insurance option in a 20 year endowment policy where the cash value is more than sufficient to provide the term coverage to maturity in which of the following ways would the excess funds be used?
C. To provide a pure endowment at maturity
169
169. The total life coverage of a permanent basic policy can be greatly increased through the use of
C. A supplemental term rider
170
170. All of the following terms are associated with substandard policies except
C. Currency extra
171
171. Life Insurance policy loans are limited to an amount with which will not exceed the
A. Cash value of the policy
172
172. Anti-selection refers to a general tendency on the part of
D. Persons with impaired insurability to be more keen in obtaining insurance coverage that those persons who are in good health.
173
173. The basic coverage provided by life insurance policies may be supplemented by separate provisions that provide coverage for additional amount or of a differents mature. Collectively these provisions are known as:
C. Riders
174
174. A life insurance agent is permitted to
D. Prepare routine proposals for life insurance coverage
175
175. In the Philippines, an insurance company's right to rescind a life insurance contract is generally limited to the first two years following policy issue date or date of approval of last reinstatement. The provisions is embodied in
C. The incontestability clause
176
176. All of the following term policies can be sold as a basic policy contract except
B. Six month interim term
177
177. If the interest on a policy loan is not paid at the policy anniversary the insurance company may
D. Increase the present loan by the interest
178
178. The following may be considered in the determination of a prospect's needs except
C. Agent's commission
