FREE Chartered Life Underwriter (CLU) III Questions and Answers

Question 1

What happens if you stop making life insurance premium payments?

Accepted Answer

The beneficiaries lose all claims to the death benefit

Answer

None of the choices apply

Answer

The beneficiaries will still have a claim to the death benefit without any deduction

Answer

The beneficiaries will only get below the standard of benefit

Question 2

Occasionally, an uncommon treatment covered by dental insurance may be needed. What proportion of the total cost will the insurance cover?

Accepted Answer

80%

Answer

100%

Answer

60%

Answer

50%

Question 3

Which of the following is completely covered by the insurance provided by the dental plan?

Accepted Answer

Diagnostic x-rays

Answer

Strong anesthetics

Answer

Braces

Answer

Wisdom tooth removal

Question 4

What is the Ax in an NSP calculation if =0.30 and r=0.02?

Accepted Answer

15/16

Answer

0.55

Answer

0.0625

Answer

0.45

Question 5

What proportion of your most recent earnings would the pension plan typically pay?

Accepted Answer

60%-70%

Answer

50%-60%

Answer

90%-100%

Answer

70%-80%

Question 6

What would happen to John's beneficiaries if he passes away before paying the last payment to complete the insurance coverage?

Accepted Answer

The beneficiaries will not have a claim to the death benefit

Answer

Half of the benefit will be claimed

Answer

The beneficiaries will still get the death benefit

Answer

The beneficiaries may pay the lapse of the payment to claim the death benefit

Question 7

Which of the following are the primary means through which the insurance sector is regulated?

Accepted Answer

Federal regulation

Answer

City regulation

Answer

Town regulation

Answer

Self-regulation