Exam FX #2 life insurance basics
which of the following premium modes would result in the highest annual cost for an insurance company monthly quarterly semi-annual annual
Monthly
Partners in a business enter into 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 the deceased partner. What type of insurance policy may be used to fund this agreement? term permanent whole life universal who life any whole life
any form of life insurance
which of the following would describe a legal document which would dictate who can buy a deceased partners share of a business and for what amount? profit and loss agreement key person agreement split dollar agreement buy-sell agreement
buy-sell agreement
If an insured changes his payment plan from monthly to annually, what happens to the total premium? doubles increases decreases stays the same
decreases
a producer agent must do all of the following except when deliverying a new policy explain the policy provisions... collect any premium due explain the rating procedure if the policy is rated differently than applied for disclose commissions made
disclose commissions made
3 types of risk for underwriters
standard substandard preferred
Medical Information Bureau (MIB) was created to protect
Insurance companies from adverse selection by high risk persons
A prospective insured recieves a conditional reciept but dies before the policy is issued. The insurer will
Pay the policy proceeds only if it would have issued the policy
partners in a buy-sell agreement what type of life insurance so they can buy when one of them dies?
any type of life insurance
An insurer wants to obtain information from investigators regarding an applicant for insurance. What must the insurer do in order to legally acquire this information?
present the insured with a disclosure authorization notice
A risk classification used by underwriters normal excellent standard poor
standard
Who is the owner and who is the beneficiary on a Key Person Life Insurance Policy?
the employer is the owner and beneficiary
what must happen when an individual policy or annuity has been personally deliverd to the policyowner>
the policyowner must sign a delivery receipt
The term "illustration" in a life insurance policy refers to charts and graphs pictures of accompanying a policy a depcition of policy benefits and gaurantees a presentation of guaranteed elements of a policy
a presentation of guaranteed elements of a policy
The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. when does the policy coverage become effective? as of the application date as of the policy delivery date as of the first of the month after the policy issue the policy issue date
as of the application date
The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective? as of the first of the month after the policy issue as of the policy issue date as of the application date as of the policy delivery date
as of the application date
all of the following are factors that an underwriter could use to select and classify risk except occupation avocation national origin morals
national origin