GA Insurance Quiz 2

L is 27 years old. She wants the opportunity for market-linked interest rates, plus she wants to be able to make additional premium contributions throughout the year. What would be the best type of life insurance policy for her?

variable universal

Which of the following endow at age 100?

whole life & limited pay

J is the insured under a $10,000 whole life policy. At the time of his death the cash value was $72,000. His beneficiary will receive:

$100,000

L owns a $100,000 10 year level term life policy. He paid $100 monthly premium on Feb 1, L failed to pay the March 1 premium. L died on March 21. How much will the beneficiary receive from L's insurer?

$100,000 less earned premium

K took out a $50,000 10 year term policy on herself and named her son age 11 as beneficiary. How much would her son receive if K dies when he is 19 years old?

$50,000

how is the death benefit paid under a $50,000 joint life policy

$50,000 on the first death, 0 on the second

G was the insured in a $50,000 5-year level term policy issued in 1969. He died in 1976. His beneficiary received:

0 dollars

which of the following would have the highest premium if issued to the same person

10 year renewable & convertible level term

all other factors being equal, which of the following lists from the largest annual premium to the smallest annual premium?

20 year endowment, 20 pay life, 20 year level term, 20 year decreasing term

Your applicant, age 35, agrees to buy a policy that will be paid up when she is 55, but will not endow until age 100. the policy is a:

20-pay life

In which of these cases should decreasing term not be considered?

A young couple wishes to guarantee financing of their 10 year old child's education in the event either parent dies before their child finishes college.

N, age 25 has a $25,000 15 year level term policy. W has a $25,000 15-year decreasing term policy. The policies were issued by the same insurer to the respective insured's on 9/1/90. Which of the following statements are correct?

If both insured's die in 2003, N's beneficiary will receive more than W's

Your prospect has an existing $50,000 15-year term policy. The policy provisions state that the death benefit will stay the same as long as the policy remains in force. What type of term policy does your prospect have?

Level

B submitted a prepaid application on March 1 to the insurance company. He was given a conditional receipt. B completed his medical exam on March 5th. The policy was issued as applied for and was mailed to the agent on March 10 and delivered to B on March 11. What is his effective date?

March 5th -if he didn't need medical it would be the date of application

All of the following are true about whole life insurance except?

The face may be paid as a lump sum at retirement age.

Joe & Virginia have a decreasing term policy to pay off their home mortgage in the event of Joe's death. In this case, which of the following is correct?

The premiums are level even though the death benefit decreases

Tom & Bill, age 25, each purchase a $50,000 life insurance policy. Tom has a 20 pay and Bill has a 30 pay. Who is paying a higher monthly premium?

Tom

An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant doesn't wish to give the agent the initial premium. When will coverage beging?

When the agent delivers the policy, the applicant signs a statement of good health and pays the initial premium.

John is the insured in a $100,000 10-year renewable term policy. Soon after taking out the policy he develops a serious heart condition and becomes uninsurable. If john lives, he WILL or WILL NOT be able to renew his policy?

Will

an insurer has made all the decisions regarding the provisions in the insured's policy. the insurer finds an objectional provision and wants to negotiate with the insurer, but is not allowed to do so. Her only options are to reject the policy or accept it as is. Which contract feature does this describe?

adhesion

who approves the rules of the insurance department?

attorney general

An insured may receive protection against the unintentional lapse of his life insurance contract by requesting which of the following at time of application:

automatic premium loan

How often are agency forms checked by the commissioner

every 12 months

there is a life insurance policy which combines whole life+ level term insurance. If the insured dies before the term insurance has expired, it guarantees that benefits will be paid in installments for a fixed number of years after the insured's death in addition to a lump sum death benefit. this policy is called:

family maintenance

a life insurance policy that provides coverage for all members of a family is a

family protection plan

a life insurance policy that is a combination of whole life and term to a given age, often 60 or 65, is called-

multiple protection life

what is the definition of a unilateral contract?

one sided; only one party makes an enforceable promise

M took out a $100,000 permanent insurance policy on her life in 2000. Her daughter C is the beneficiary. M died in 2004. C submits a claim for the death benefit. Upon receiving the claim the insurer discovers M made material misstatements on the original application. The insurer will:

pay the full $100,000 to C

for an extra charge, juvenile life insurance policies may be written with a provision that will waive future premium payments if the policy owner dies or become disabled before a specified date. Another name for 'waiver of premium' on such policies is-

payor benefit

A yearly renewable term policy has a ______ that steps up or increases each year based on the insureds _____

premium age

of the following policies, purchased at age 40 - which builds cash value the fastest?

single premium whole life

an adjustable life insurance policy provides the flexibility to allow:

the insured to change the face amount (with evidence of insurability or premium payments)

the name for an insurance plan combining life insurance and equity investments, under which the benefits are not fixed and depend upon performance of the investments or an economic index, is;

variable life