Insurance - Study Mode

[#526] A policy document for a money-back policy includes the statement of the proposal and declaration signed by the proposer form the basis of the contract's. In which main section of the policy document will this normally appear?
Correct Answer

(C) Preamble

Explanation

Solution: A policy document for a money-back policy includes the statement of the proposal and declaration signed by the proposer form the basis of the contract's. In Preamble section of the policy document will this normally appear.

[#527] A life insurance policy can only be made paid up if what particular policy feature exists?
Correct Answer

(D) Savings element

Explanation

Solution: A life insurance policy can only be made paid up if Savings element policy feature exists.

[#528] The main reason why a life insurance proposal form often asks for the proposer's height is to enable a reasonable comparison with the proposer’s
Correct Answer

(D) Weight

Explanation

Solution: The main reason why a life insurance proposal form often asks for the proposer's height is to enable a reasonable comparison with the proposer’s Weight.

[#529] Where annually increasing flexible premiums operate under a life insurance policy, what rate of increase will generally apply?
Correct Answer

(C) 5.00%

Explanation

Solution: Where annually increasing flexible premiums operate under a life insurance policy, 5.00% of increase will generally apply.

[#530] All of the following are characteristics of variable life insurance EXCEPT:
Correct Answer

(A) Flexible premium payments

Explanation

Solution: All of the following are characteristics of variable life insurance except flexible premium payments. A flexible premium annuity allows the 'annuitant', or the owner of the annuity, to make premium payments over a number of years. You would have to pay a small amount to start the annuity, but you make contributions over a number of months or years.