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

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?

Accepted Answer

80%

Answer

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?

Accepted Answer

Diagnostic x-rays

Answer

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?

Accepted Answer

15/16

Answer

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?

Accepted Answer

60%-70%

Answer

A pay-as-you-go pension arrangement allows for current employees to fund retirees through their employment taxes.

CLU - Chartered Life Underwriter Practice Test

CLU - Chartered Life Underwriter Practice Test

FREE Chartered Life Underwriter (CLU) III Questions and Answers