Life Insurance Policies

A flexible premium universal life insurance policy must provide a grace period of

30 days

If an insurer cancels a universal life insurance policy due to the nonpayment of required premiums, how much prior notice must be given to the policyowner?

30 days

In order to qualify for conversion from a group life policy to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?

5

A policyowner of a universal life insurance policy must receive a policy status report from the insurer at least

Annually

All other factors being equal, the least expensive first-year payment is found in

Annually Renewable Term

Graded-Premium Whole Life policy premiums are typically lower initially but gradually increase for a period of 5 to 10 years. After the period of increase the premiums will

Be level thereafter

Which of the following is NOT allowed in credit life insurance?

Creditor requiring that a debtor buys insurance from a certain insurer

An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a(n)

Interest-sensitive Whole Life

In Modified Life policies, what happens to the premium?

It is level at the beginning and increases after the first few years

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 statement is NOT true regarding a Straight Life policy?

Its premium steadily decreases over time, in response to its growing cash value

Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement age of 65, What would be the right policy for this client?

Limited pay whole life

Which Universal Life option has a gradually increasing cash value and a level death benefit?

Option A

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy

Required a premium increase each renewal

In a group life insurance policy, the employer may select all of the following EXCEPT

The beneficiary

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 characteristics of a group life insurance plan EXCEPT

There is a requirement to prove insurability on the part of the participants

If a statement of policy information is not furnished to the applicant at the time of application, how soon must the form be delivered to the applicant?

15 days

The death benefit under the Universal Life Option B

Gradually increases each year by the amount that the cash value increases

Which of the following best describes annually renewable term insurance?

It is level term insurance

A credit insurance policy must be delivered to the debtor within how many days after the indebtedness is incurred?

30 days

Which of the following policies is characterized by a provision where the premiums are lower in the early years of the policy and increase over time to a point where they become level for the remainder of the policy?

Graded premium whole life

Which of the following is NOT considered when underwriting group insurance?

The insured's medical history

A Straight Life policy has what type of premium

A level annual premium for the life of the insured

If in an employee wants to enter the group outside of the open enrollment period, to reduce adverse selection, the insurer may

Require evidence of insurability

All of the following entities regulate variable life policies EXCEPT

The Guaranty Association

Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?

Those who have been insured under the plan for at least 5 years

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?

Universal Life - Option A.