Free Chartered Life Underwriter (CLU) III Questions and Answers — Questions and Answers
Question 1: What happens if you stop making life insurance premium payments?
- The beneficiaries lose all claims to the death benefit (Correct answer)
- None of the choices apply
- The beneficiaries will still have a claim to the death benefit without any deduction
- The beneficiaries will only get below the standard of benefit
Correct answer: The beneficiaries lose all claims to the death benefit
Insurance firms profit because some customers fail to make the agreed-upon payments. Beneficiaries of those who pass away with an unfinished amount will not be eligible to receive death benefits.
Question 2: Occasionally, an uncommon treatment covered by dental insurance may be needed. What proportion of the total cost will the insurance cover?
- 100%
- 80% (Correct answer)
- 60%
- 50%
Correct answer: 80%
The patient can pay a yearly deductible for the bill out of any remaining costs.
Question 3: Which of the following is completely covered by the insurance provided by the dental plan?
- Strong anesthetics
- Braces
- Wisdom tooth removal
- Diagnostic x-rays (Correct answer)
Correct answer: Diagnostic x-rays
Treatments including aesthetic requirements, tooth replacement, and plaque management are sometimes not reimbursed by insurance or are otherwise excluded.
Question 4: What is the Ax in an NSP calculation if =0.30 and r=0.02?
- 0.55
- 15/16 (Correct answer)
- 0.0625
- 0.45
Correct answer: 15/16
What is the Ax in an NSP calculation if =0.30 and r=0.02?
Question 5: What proportion of your most recent earnings would the pension plan typically pay?
- 50%-60%
- 90%-100%
- 70%-80%
- 60%-70% (Correct answer)
Correct answer: 60%-70%
A pay-as-you-go pension arrangement allows for current employees to fund retirees through their employment taxes.
Question 6: What would happen to John's beneficiaries if he passes away before paying the last payment to complete the insurance coverage?
- Half of the benefit will be claimed
- The beneficiaries will still get the death benefit
- The beneficiaries may pay the lapse of the payment to claim the death benefit
- The beneficiaries will not have a claim to the death benefit (Correct answer)
Correct answer: The beneficiaries will not have a claim to the death benefit
The insurance won't cover anything under the contract, even with a minor delay in their payments. Prior to coverage, all contractually mandated payments must be made.
Question 7: Which of the following are the primary means through which the insurance sector is regulated?
- City regulation
- Town regulation
- Federal regulation (Correct answer)
- Self-regulation
Correct answer: Federal regulation
A sizable section of the general public benefits from insurance, which is a public utility.
Free Chartered Life Underwriter (CLU) III Questions and Answers
What happens if you stop making life insurance premium payments?