Chapter 1

Stranger oriented life, insurance policies are in direct opposition to the principal of

Insurable interest

Which of the following must be disclosed in all advertisements and policies of term, life insurance for individuals 55 years of age or older

Insurance monetary value index

Which of the following is not true, regarding the needs approach method of determining the value of an individual's life

Need is predicted using the number of years until the insurance retirement

Attempting to determine how much insurance and family would require based on their financial objective is known as

Needs approach

Which of the following is correct concerning the taxation of premiums in a key person life insurance policy

Premiums are not tax deductible as a business expense.

If an agent fails to obtain an applicant signature on the application, the agent must

Return the application to the applicant for a signature

Under policy delivery, the producer must be required to obtain any of the following, except

Signed waiver of premium

Which of the following would not fall into the category of cost associated with death?

The expense of a vacation for surviving family members

Which of the following is a risk classification used by underwriters for life insurance?

standard

Partners in a business center in to a buy sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of a deceased partner. What type of insurance policy may be used to find this agreement?

Any form of life insurance

A policy available to business owners that provides payment for normal business expenses in the event that the owner is disabled is called

Business Overhead Expense

All the following are personal use of life insurance, except

Buy sell agreement