Life Insurance Policies
A domestic insurer has just decided to change the investment policy of a separate account. After this change is filed with the Director how soon will it become effective?
60 days
A Straight Life policy has what type of premium?
A level annual premium for the life of the insured.
At age 30, an applicant wants to start an insurance program, but realizing that his insurance needs will likely change, he wants a policy that can be modified to accommodate those changes as they occur. Which of the following policies would most likely fit his needs?
Adjustable Life
The LEAST expensive first-year premium is found in which of the following policies?
Annually Renewable Term
A Universal Life Insurance policy is best described as a/an
Annually Renewable Term policy with a cash value account.
Which of the following is TRUE about credit life insurance?
Creditor is the policyowner.
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
What type of premium do both Universal Life and Variable Universal Life policies have?
Flexible
A Universal Life insurance policy has two types of interest rates that are called
Guaranteed and Current
Which of the following is correct regarding credit life insurance?
It insures the life of a debtor.
An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertibility options. When the insured renews the policy in 5 years, what will happen to the premium?
It will increase because the insured will be 5 years older than when the policy was originally purchased.
Which statements is NOT true regarding a Straight Life policy?
Its premium steadily decreases over the time, in response to its growing cash value.
Which statement is NOT true regarding a Straight Life policy?
Its premium steadily decreases over time, in response to its growing cash value.
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
If a life insurance policy increases significantly in face amount (death benefit) when the insured reaches a specified age, what type of policy is this?
Jumping juvenile policy
Which of the following is an example of a limited-pay life policy?
Life Paid-up at Age 65
Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?
Limited pay whole life
An insured has a Level Term Life Insurance policy that is guaranteed renewable and also includes a re-entry provision. The re-entry provision would allow the insured to renew the policy and
Pay a lower renewal premium by proving insurability.
To sell variable life insurance policies, an agent must receive all of the following EXCEPT
SEC registration.
Which of the following policies would be classified as a traditional level premium contract?
Straight Life
Which of the following would help prevent a universal life policy from lapsing?
Target premium
Which of the following statements about group life is correct?
The cost of coverage is based on the ratio of men and women in the group.
An Adjustable Life policyowner can change which of the following policy features?
The coverage period
An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?
The insured may choose to convert to term or permanent individual coverage.
All of the following are true regarding a decreasing term policy EXCEPT
The payable premium amount steadily declines throughout the duration of the contract.
In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT
The type of investment.
All of the following are characteristics of a group life insurance plan EXCEPT
There is a requirement to prove insurability on the part of the participants.
What is the purpose of establishing the target premium for a universal life policy?
To keep the policy in force
Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?
Universal life
In a survivorship life policy, when does the insurer pay the death benefit?
Upon the last death
Which of the following types of policies allows for a flexible and a variable investment component?
Variable universal life insurance
Which of the following types of policies allows for a flexible premium and a variable investment component?
Variable universal life insurance
When would a 20-pay whole life policy endow?
When the insured reaches age 100
