Chapter 3: Life Insurance - Basics
Stranger-oriented life insurance policies are in direct opposition to the principle of
Insurable Interest
What is the term used when a person sells his assets as a way to gain money?
Liquidation
An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, no conditional receipt is issued. When will the coverage begin?
When the agent submits the application to the company and the company issues a conditional receipt
Who is the owner and the beneficiary in a Key Person Life Insurance Policy?
The employer is the owner and the beneficiary
The title page provides a summary of the benefits and coverages provided by the policy. All of the following information is included in the title page EXCEPT
The insured's beneficiaries.
Which of the following is the best reason to purchase life insurance rather than annuities?
To create an estate
Which of the following CANNOT be included along with illustrations used to sell life insurance?
Vanishing premium information
Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process?
Buyer's Guide
When the partners of a business an arrangement whereby should one of them die or become permanently disabled, the other partners would purchase the interest of the deceased or disabled partner at a predetermined price, this is called a/an...
Business continuation plan
Which of the following would describe a legal document which would dictate who can buy a deceased partner's share of a business and for what amount?
Buy-sell agreement
In the Executive Bonus plan, who is the owner of the policy, and who pay the premium?
Executive is the owner, and the executive pays the premium
A life insurance policy can be delivered by all of the following means EXCEPT
Priority mail