Exam Simulator Questions

In the Executive Bonus plan, who is the owner of the policy, and who pays the premium?

Executive is the owner, and the executive pays the premium. The employer reimburses the executive for cost (or pays a bonus in the amount of the premium). The amount paid by the employer is considered taxable income.

Variable Life Insurance is based on what kind of premium?

Level Fixed

Which option for Universal Life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?

Option B

Which type of insurance is based on mutual agreements among subscribers?

Reciprocal insurance

In forming an insurance contract, when does acceptance usually occur?

When an insurer's underwriter approves coverage

When can you skip a premium on a Universal Life Policy?

When there is enough cash value to cover it

What is the term for the entity that an agent represents regarding contractual agreements with third parties?

Principal

An applicant wants to buy a life insurance policy in which he can count on receiving the same benefits as stated in the contract. Which type should he buy?

Fixed

What best describes the coverage provided by TERM policies, compared to any other form?

Greatest

What happens to the premium of an Annually Renewable Term Life policy?

Increases each renewal

Which of the following terms best describe a Term-to-65 contract's premium and death benefit respectively?

Level; Level