4. In the event of a death claim under a life insurance policy, what happens to the amount of any existing policy loan?

a)It is deducted from the face amount of the policy together with any interest due.

b)The beneficiary has an obligation to pay the amount to the insurance company

c) It represents a primary claim against the estate of the insured.

d) It is canceled and the beneficiary receives the face amount of the policy.

5. An attending physician statement (APS) sometimes used in life insurance underwriting is:

a)Information provided by the Medical Information Bureau

b)The medical questionnaire portion of the application

c)Information provided by a physician on the applicants medical history

d)The form completed by the physician performing a required insurance examination

10.A fixed life annuity is a contract that guarantees protection against:

a) A loss of income due to unemployment

b) A loss of purchasing power due to inflation

c) Inadequate family savings due to premature death

d) Exhaustion of savings due to longevity