IIAP Ordinary Life (OL) Practice Exam

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• What is the role of a premium in Ordinary Life insurance?
• Which provision allows for cash value to be accessed while the policy remains active?
• What does the graded premium structure typically aim to address?
• What is "policy settlement" in life insurance?
• How do dividends work in participating life insurance policies?
• In a 20-pay life policy, what is the duration of protection provided?
• What does the term "knocking" refer to in insurance terminology?
• Which of the following is a settlement option?
• When does life insurance typically go into effect according to common practice among insurers?
• When enrolling in an employer-employee group insurance, how does the employee apply for insurance?
• What is a policy illustration in life insurance?
• What does the cash surrender value option give to the policyholder?
• What is a rider in an insurance policy?
• What is the significance of contestability periods in life insurance?
• Who benefits from the cash value component of a whole life insurance policy?
• Which rider is commonly associated with Ordinary Life insurance?
• What is the primary difference between group life insurance and individual life insurance?
• What does a term policy primarily offer?
• What is one of the benefits of deferring premiums in life insurance?
• Which action is prohibited for a policyowner with an irrevocable beneficiary?
• What is the primary purpose of Ordinary Life insurance?
• Insurance companies owned by the policyowners are classified as?
• What is the primary purpose of life insurance?
• Which of the following is NOT true about life insurance applications?
• What is the purpose of using mortality tables in life insurance?
• What must be communicated regarding dividends?
• What does a single premium policy require?
• What are the three non-forfeiture values in a permanent policy?
• What occurs when the policyowner elects the paid-up insurance option?
• To calculate premiums for alternate payment modes, what is done to the annual premium?
• Since the purchase of life insurance is a voluntary choice, the individual must meet?
• In the event of a policyholder's death, what is the insurer obligated to pay?
• Which document does an employee fill out to enroll in group insurance?
• Twisting in the context of insurance refers to what practice?
• In regard to non-forfeiture values, what does "extended term insurance" refer to?
• What documentation is needed for a beneficiary to claim benefits after the insured's death?
• What is a term conversion option in life insurance?
• What type of plan entitles Mr. Juan Valdez to receive dividends yearly?
• How can group coverage be converted to an individual policy?
• Who owns stock companies?
• A hazardous occupation could be defined as?
• Which factor is essential for calculating required premiums for a policy?
• What occurs if a policyholder stops paying premiums on a Whole Life insurance policy?
• If a policyowner commits suicide within one year, what is the insurance company's liability?
• What does the term "insurer" refer to in life insurance?
• If an insured person is diagnosed with a terminal illness, how long does the policy typically cover them?
• What does "moral hazard" refer to in life insurance?
• How is the "face amount" of a life insurance policy defined?
• What do insurance companies assess to determine the life expectancy of policyholders?
• Which element of a life insurance premium refers to the costs incurred to maintain the insurance business?
• Why is it important for life insurance to be regulated at the state level?
• In the event that a policy elects the paid up insurance option, what happens?
• What does "payment mode" refer to in life insurance?
• Which provision in a permanent life insurance policy may lapse due to non-payment of premium?
• How does the type of insurance affect a beneficiary's options?
• What happens to premiums in a paid up insurance scenario?
• What is required if a policyowner wants to cash in a policy with an irrevocable beneficiary?
• Which statement is true about irrevocable beneficiaries?
• What is the purpose of a waiting period in some life insurance policies?
• In a life insurance contract for a child, who is typically the applicant-owner?
• Which of the following types of insurance provides lifelong coverage?
• What does the IC require proof of prior to granting an insurance license?
• What do non-forfeiture options in life insurance provide to policyholders?
• Who can be designated as a beneficiary in a life insurance policy?
• What is the impact of health disclosures on underwriting decisions?
• Which insurance plan typically does not provide dividends?
• What can be a consequence of the contestable period for policyholders?
• In a life insurance policy, if a premium is not paid, within what timeframe does the grace period apply?
• Which type of benefits is typically included in health insurance policies?
• What does the cash surrender value of a life insurance policy represent?
• What does a policy loan signify in the context of Ordinary Life insurance?
• In case of misstatement of age, what occurs?
• Anti-selection occurs?
• What does a policy loan typically require?
• A person has insurable interest in the life of which of the following?
• What defines level premiums in an insurance policy?
• How does underwriting impact Ordinary Life insurance?
• How does the contestable period benefit insurers?
• How do life insurance companies use investment earnings from premiums?
• When are interest charges applied to policy loans?
• A policyholder can obtain money from the insurance company while remaining insured by which method?
• What might happen if an insured individual commits suicide during the contestability period?
• How does the age of the insured affect life insurance premiums?
• Which aspect of Whole Life insurance is often highlighted to show its value?
• What is "sum assured" in basic life policies?
• What is the purpose of the insurable interest requirement in life insurance?
• Which statement is incorrect regarding the entire contract of a policy?
• What is an exclusion in a life insurance policy?
• What does the convertible feature of a term insurance policy allow?
• If a policy lacks a designated beneficiary, who will receive the benefits?
• In insurance, risk means?
• If there is a misstatement of age when taking out an insurance policy, what will the insurance company pay upon the insured's death?
• What is the characteristic of decreasing premiums?
• Life insurance policies for which higher than standard premium rates are payable are said to be?
• What does "net worth" reflect in the context of evaluating insurance needs?
• What financial metric can influence a person's insurance requirements?
• What could trigger the use of a living benefit rider in an insurance policy?
• If an employee leaves the company, how can they change their group coverage to an individual policy?
• Selling a policyholder more insurance than is warranted is known as what?
• What is the primary difference between revocable and irrevocable beneficiaries in a life insurance policy?
• Within what time frame is the suicide clause in effect?
• An annuity plan is essentially a?
• Inducing an insured to lapse their insurance is considered what?
• What is the main difference between term plans and permanent plans?
• What are the three elements that make up a life insurance premium?
• What constitutes a completed sale in life insurance?
• Mrs. Rose Cortez has a policy that does not allow for cash value buildup and has level premiums. What type of policy does she own?
• What is accidental death and dismemberment (ADandD) insurance?
• What is the effect of a misstatement of age on the policy?
• In life insurance, what does the term 'loading' refer to?
• Which of the following can influence the determination of substandard premium rates?
• What term describes the average number of years that persons at a given age are expected to live?
• Which statement is true regarding dividends in a permanent policy?
• A risk is considered substandard based on any or all of the following criteria?
• Which two features are attractive in term insurance?
• At what level is life insurance primarily regulated?
• Which option describes values associated with insured individuals who have reached the end of their premium payment period?
• Industrial insurance primarily caters to which of the following?
• Which of the following reflects an individual’s overall financial health?
• In an application, the information that must be disclosed includes?
• Which of the following factors does NOT influence life insurance premiums?
• What is the main purpose of graded premiums in life insurance?
• What is a key feature of a "living benefit" rider in insurance policies?
• If a policyholder's wife is his irrevocable beneficiary and predeceases him, how are his children classified?
• What happens to dividends on a participating policy when a loan is taken against it?
• Who is responsible for calculating the necessary elements in life insurance premiums?
• What is the advantage of receiving dividends in life insurance?
• Disability benefits are typically not paid for which of the following reasons?
• What does "underwriting risk" refer to in life insurance?
• From what two main sources does a life insurance company earn its income?
• Which of the following factors would have the least effect on the premium charged for life insurance?
• Which life insurance policy provides the longest protection?
• What is a beneficiary in life insurance?
• In life insurance, what is a common reason for beneficiaries to receive payment?
• What happens to premiums when a policyholder chooses the paid-up insurance option?
• What factor is known as the part of the premium that is invested by the insurance company?
• When considering premium submissions, what does "forwarding" typically allow?
• Which of the following actions is permitted for an insurance agent?
• Which of the following is covered under health insurance policies?
• Which of the following describes an exclusion in a policy most accurately?
• Which of the following is NOT a main type of Ordinary Life insurance policy?
• Which statement is true regarding confidentiality in life insurance?
• Why is the insurance industry subjected to government regulations?
• Which of the following is NOT correct regarding the reinstatement process?
• In insurance, what term describes an individual's right to change a policy?
• Which of the following represents an insurable interest?
• Why might someone choose a whole life insurance policy over term insurance?
• When will an insurance agent's license be renewed?
• Who holds the absolute right to change beneficiaries in a policy with a revocable beneficiary?
• What does the term "loading" refer to in insurance?
• At the end of 25 years, what is true for a 25-year life policy that is not true for a 25-year endowment?
• What is the fundamental advantage of insurance in meeting economic losses?
• What is the advantage of having a trusted advisor when selecting life insurance?
• What is a fixed amount added to the premium known as?
• What does a Term Life insurance policy provide?
• What is the importance of a free look period in life insurance?
• The suicide clause is in effect for how long?
• What happens if a policyholder fails to make premium payments?
• What is the maximum claim amount that the IC can adjudicate against insurance companies?
• What typically characterizes a term life insurance policy?
• In which situation can an insurance commissioner revoke or refuse to renew an agent's license?
• What is the provision in a permanent life insurance policy that maintains full coverage for a specified period if premiums are discontinued?
• What are the basic settlement options?
• In life insurance, what is a key feature of a 'beneficiary'?
• In life insurance, which term refers to the financial gains from the investment of premiums?
• What is meant by "insurance lapse"?
• In the context of Ordinary Life insurance, what is cash value?
• Which statement is accurate regarding premium rebating?
• How does an automatic premium loan differ from other policy loans?
• What is the typical grace period provision in a life insurance policy?
• How does an irrevocable beneficiary affect the policyholder's ability to change beneficiary designations?
• What does "level coverage" mean in life insurance?
• What type of insurance benefits both the insurer and insured by establishing a premium payment agreement?
• What happens when a policy is assigned absolutely?
• How is life insurance best characterized?
• Which of the following terms refers specifically to payouts made to beneficiaries upon the death of the insured?
• In insurance, risks are classified as?
• What key feature does a Whole Life insurance policy include?
• Which of the following is true about the dividends from life insurance?
• How often is industrial insurance typically paid?
• What is a common feature of participating policies in life insurance?
• Why is it important that the application is the basis of the policy?
• What type of insurance plan provides protection and savings?
• Why are health disclosures essential during the insurance application process?
• What does "forwarding of premiums" in a life insurance context refer to?
• Which option gives the maximum protection for someone with moderate means?
• What is one advantage of Whole Life insurance over Term Life insurance?
• What is defined as premium discrimination against policyholders?
• A feature of a term insurance policy that allows for conversion to permanent insurance without evidence of insurability is called?
• If you are accidentally killed within two years of buying a life insurance policy, what will the insurance company usually do?
• Insurance Companies have various sources of information about the insured. These are?
• What type of life insurance option allows for the distribution of investment returns back to policyholders?
• What happens to the premiums if a policyholder chooses to renew their term insurance?
• What role do actuaries play in life insurance?
• What is a key characteristic of annuity plans?
• What happens to premiums in a decreasing premium policy?
• What advantage does "term insurance renewal" provide to policyholders?
• What is typically required when converting a term insurance policy?
• What is the term for a plan that allows policyowners to receive a return of excess premiums?
• What is an insurance trust and its primary benefit?
• Which of the following is an example of ethical practices in insurance?
• Substandard premium rates are charged to which of the following?
• What does "premium holiday" mean in the context of life insurance?
• Which parties are involved in a life insurance contract?
• According to insurance law, why can't a common-law spouse be designated a beneficiary?
• What is the term used for the misstatement of facts in an insurance contract?
• What is a key benefit of term life insurance?
• The savings element of permanent plans allows for the buildup of what?
• What is survivorship life insurance?
• What does "beneficiary" mean in the context of life insurance?
• What type of plan should be offered to someone who wants insurance coverage until age 65 with minimal premiums?
• Which of the following justifies insurers charging females lower premium rates than males?
• In a life insurance policy, what effect does non-payment of premium have on the automatic premium loan provision?
• What occurs if a policyowner fails to pay a premium on the due date?
• In which way does life insurance contribute to the welfare of society?
• If Mr. Dela Cruz misstated his age in the application, what happened when he died?
• What is usually payable to the beneficiary if the insured dies during the grace period of an unpaid life insurance policy?
• Which of the following is considered a type of life insurance?
• Which of the following is NOT considered an unethical practice in insurance solicitation?
• Policy reserves represent future obligations on the part of?
• Which of the following factors typically increases the life insurance premiums for individuals?
• What distinguishes whole life insurance from universal life insurance?
• Within what time frame can a lapsed insurance policy typically be reinstated?
• What must happen for an insurable interest to be valid in a life insurance policy?
• Who is referred to as the person who purchases the annuity plan?
• What term describes the transfer of ownership rights in a life insurance policy?
• What is a feature of whole life insurance?
• Which non-forfeiture option offers the most protection?
• Which option is not a component of basic settlement options?
• What does "waive premium" mean in life insurance?
• What is one characteristic of endowment insurance compared to life insurance?
• Which statement about commission sharing is correct?
• What benefit does the Accidental Death Benefit Rider provide?
• Life insurance can provide financial support when income stops due to which of the following?
• Which of the following factors is not typically included in the calculation of life insurance premiums?
• Which insurance feature helps to share in the earnings of the insurer?
• In addition to death benefits, what can life insurance policies provide?
• Which of the following is a component of life insurance premiums that involves risks associated with the death of the insured?
• Which action can result in the revocation of an insurance agent's license?
• Which insurance option allows borrowing against cash value?
• What is the term for persuading a policyowner to replace their policy with another company's policy?
• What does the death benefit refer to in life insurance?
• Which one of the following is not derived from the non-forfeiture values?
• What are guaranteed insurability options?
• What type of policy allows an individual to receive the face amount after 20 years if they are still alive?
• What is the consideration required by a life insurance company to make coverage effective?