Financial advisor simulation #1-20
In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?
5
Which of the following components must a life insurance policy have to allow policy loans?
Cash value
All of the following are duties and responsibilities of produces at the time of application EXCEPT
Change any incorrect statement on the application by personally initialing next to the corrected statement
An individual has just borrowed $10,000 from his bank on a 5 year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?
Decreasing term
Which of the following terms is used to name the non taxed return of unused premium?
Dividend
When the policy owner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?
Fixed amount
All of the following are dividend options EXCEPT
Fixed period installment
Which of the following is an eligibility requirement for all social security disability income benefits
Have attained fully insured status
In which of the following cases will the insured be able to receive the full face amount from a whole life policy?
If the insured lives to age 100
Which of the following is NOT true regarding the life with guaranteed minimum annuity settlement option?
It does not guarantee that the entire principal amount will be paid out
A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that?
Joint life policy
An insured has a life insurance policy form a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called.
Paid up additions
An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use?
Paid up option
Which of the following has the right to convert the existing term coverage to permanent insurance?
Policyowner
Group life insurance is a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is correct?
Premiums are determined by age, occupation, and individual underwriting
The gramm-leach-bliley act was passed to
Protect private customer information filed with a financial institution
Which two terms are associated directly with the way an annuity is funded?
Single payment or periodic payments
Which of the following policies would be classified as a traditional level premium contract?
Straight life
A father owns a life insurance policy on his 15-year-old daughter. The policy contains the option payor benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?
The insured's premiums will be waived until she is 21
Which of the following is TRUE regarding the premium in term policies?
The premium is level for the term of the policy
