Practice Exam Flashcards
7 cards from real CLU practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Practice Exam flashcards as text
What happens if you stop making life insurance premium payments?
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.
Occasionally, an uncommon treatment covered by dental insurance may be needed. What proportion of the total cost will the insurance cover?
Answer: 80%
The patient can pay a yearly deductible for the bill out of any remaining costs.
Which of the following is completely covered by the insurance provided by the dental plan?
Answer: Diagnostic x-rays
Treatments including aesthetic requirements, tooth replacement, and plaque management are sometimes not reimbursed by insurance or are otherwise excluded.
What is the Ax in an NSP calculation if =0.30 and r=0.02?
Answer: 15/16
What is the Ax in an NSP calculation if =0.30 and r=0.02?
What proportion of your most recent earnings would the pension plan typically pay?
Answer: 60%-70%
A pay-as-you-go pension arrangement allows for current employees to fund retirees through their employment taxes.
What would happen to John's beneficiaries if he passes away before paying the last payment to complete the insurance coverage?
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.
Which of the following are the primary means through which the insurance sector is regulated?
Answer: Federal regulation
A sizable section of the general public benefits from insurance, which is a public utility.