Chapter 2 Quiz

¡Supera tus tareas y exámenes ahora con Quizwiz!

An individual purchased $100,000 Joint Life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receive from the policy?

100,000 (in joint life policies, the DB is paid upon the first death only)

Which of the following is not a term for the period of time during which the annuitant?

Depreciation period

An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments & expense factors, the cash values could change from those shown in the policy at issue time. The policy is an:

Interest-sensitive whole life policy

All of the following statements are true regarding installments for a fixed period annuity settlement option EXPECT

It is a life contingency option

Which of the following is NOT true about a joint and survivor annuity benefit option?

Payments stop after the first death among the annuitants

A straight life policy has what type of premium?

a level annual premium for the life of the insured

The LEAST expensive first-year premium is found in which of the following policies?

annually renewable term

Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?

joint life - least expensive because premiums are based on average age and it only pays a death benefit at the first death

Which of the following is an example of a limited-pay life policy?

life paid-up at age 65

Which of the following is a key distinction between variable whole life and variable universal life products?

variable whole life has a guaranteed death benefit

Which type of life insurance policy generates immediate cash value?

Single Premium (Whole Life)

An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100 is called

Single Premium Whole Life

All of the following are true regarding a decreasing term policy EXCEPT

The payable premium amount steadily declines throughout the duration of the contract

If the owner of a whole life policy who is also the insured dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary?

a full death benefit

Which of the following determines the cash value of a variable life policy?

The performance of the policy portfolio


Conjuntos de estudio relacionados

Spanish - "Letter from Birmingham Jail" - Vocabulary

View Set

Week 15: Digestive System Physiology

View Set

1-1 المخلوقات الحيه وعلاقاتها المتبادله

View Set

Macroeconomics Final Key Concepts CH: 1-10,12,13

View Set

Chemistry: Chapter 13 Review: Properties of Solutions

View Set