Life insurance policies (Quiz3)
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? A. Jumping juvenile policy B. Limited pay whole life policy C. Modified life insurance policy D. Single premium policy
A. Jumping juvenile policy
An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it? A. Limited pay life B. Variable life C. Adjustable life D. Graded premium life
A. Limited pay life
Which type of life insurance policy allows the policy owner to pay more or less than the planned premium? A. Universal life B. Variable whole life C. Decreasing term D. Straight whole life
A. Universal life
A universal life insurance policy is best described as a/an A. Flexible premium variable life policy B. Annually renewable term policy with a cash value account C. Variable life with a cash value account D. Whole life policy with two premiums: target and minimum
B. Annually renewable term policy with a cash value account
What are the two components of a universal policy? A. Separate account and policy loans B. Insurance and cash account C. Insurance and investments D. Mortality cost and interest
B. Insurance and cash account
The premium of a survivorship life policy compared with that of a joint life policy would be A. Half the amount B. Lower C. Higher D. As high
B. Lower
Which Universal Life option has a gradually increasing cash value and a level death benefit? A. term insurance B. Option B C. Option A D. Juvenile life
C. Option A
Concerning Juvenile Life insurance, which of the following statements is INCORRECT? A. Usually a parent or guardian is the applicant for insurance on the life of a minor B.It can be a limited premium payment policy C. Juvenile life is classified as any life insurance written on the life of a minor D. Juvenile life is classified as any life insurance purchased by a minor
D. Juvenile life is classified as any life insurance purchased by a minor
A policy will pay the death benefit if the insured dies during the 20 year premium paying period, and nothing if death occurs after the 20 year period. What type of policy is this? A. Term to specified age B. Ordinary life policy C. Limited pay whole life D. Level term
D. Level term
What are the licensing requirements for someone who sells variable universal life insurance? A. Life insurance B. Securities C. Universal life and variable products D. Life insurance and securities
D. Life insurance and securities
Which of the following is an example of a limited pay life policy? A. Renewable term to age 70 B. Level term life C. Straight life D. Life paid up at age 65
D. Life paid up at age 65
Which of the following policies would be classified as a traditional level premium contract? A. Adjustable Life B. Universal life C. Variable universal lofe D. Straight life
D. Straight life
An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen? A. The insurer will pay a reduced death benefit to the beneficiary B.The insurer will pay the death benefit minus one months premium C.The insurer will pay nothing because the employee has terminated his group insurance and hasn't started the individual one. D. The insurer will pay the full death benefit from the group policy to the beneficiary
D. The insurer will pay the full death benefit from the group policy to the beneficiary
Which of the following types of policies allows the policy owner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount? A. Flexible life B. Variable life C. Adjustable life D. Universal life
D. Universal life
If an employee wants to enter the group outside of the open enrollment period, to reduce adverse selection, the insurer may A. Require a higher premium B.Prolong the open enrollment period C.Increase medical requirements on existing members D. Require evidence of insurability
D.Require evidence of insurability
