Question 1. Accelerated death benefit riders permit

a) the death benefit to be paid within 30 days rather than 90 days after the date of death

b) payment of all or part of the death benefit before death under certain circumstances

c) premiums to be waived if the insured becomes disabled

d) another insured person to be added to the policy

Question 2. The Law of Large Numbers states that:

a)the losses of the few are shared among the premiums of the many

b)more policies insure against an insurer's financial success

c)the losses of the few are exactly balanced by the premiums of the many

d)policies shared among many result in lower rates

Question 3. The income replacement approach to determining a family's insurance needs is based primarily on?

a) the earnings growth rate of long-term U.S. Treasury securities

b) regulations issued by the Department of Health and Human Services

c)  the current balance in the accumulated adjustment account

d)  the human life value concept

Question 4. For families with young children or couples with a living standard that is relatively high for their income, the amount of insurance needed will be high. As a result,

a) the priority should be to provide the most possible permanent insurance

b) the priority should be to provide adequate death protection

c) the couple should be encouraged to save for several years until they can afford to purchase permanent insurance

d) a combination of term and permanent insurance should always be recommended regardless of how little the client can afford

Question 5. The GST Tax may be triggered by which of the following events?

a)  a direct gift to a grandchild

b)  the death of a grantor's child that leaves a grandchild as the last remaining beneficiary of a trust

c) a distribution from a trust to a grandchild of the grantor

d) all of the above