LIFE Primerica General
Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?
Size of each installment
If a life insurance policy has an irrevocable beneficiary designation, _________
The beneficiary can only be changed with written permission of the beneficiary
Annually renewable term policies provide a level death benefit for a premium that ___________
Increases
An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies, and habits. What type of report is that?
Inspection report
Which of the following policy components contains the company's promise to pay?
Insuring Clause
Which of the following is NOT true regarding a nonqualified retirement plan?
Needs IRS approval
Which option for Univeral life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
Option B
Which nonforfeiture option provides coverage for the longest period of time?
Reduced paid-up
The paid-up addition option uses the dividend to ________
Reduces the next year's premium
An individual borrowed money at the bank to send his daughter to college. Instead of purchasing Credit Life insurance, he used an existing life insurance policy to secure the debt. This would be called a/an
Collateral assignment
What factors determine the amount of each installment paid in a Life Income Option Arrangement?
Life expectancy and financial staus of the insured
Methods used to pay the death benefits to a beneficiary upon the insured's death are called
Settlement option
A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as
Survivor protection
What would help prevent a universal life policy from lapsing?
Target premium
What premium payment mode will incur the lowest overall payment?
Annual
The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?
As of the application date
What does "Liquidity" refer to in a life insurance policy?
Cash values can be borrowed at any time
A Universal Life Insurance policy is best described as
Flexible premium variable life policy
What is the purpose of a conditional receipt?
It is intended to provide coverage on a date earlier than the date of the issuance of the policy.
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?
Life Income with period certain
Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?
Paid-up option
The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?
Reduction of premium
Because of financial obligations, John felt that he needed more insurance than the insurer was willing to issue. John's insurance producer told him that he could maximize the death benefit without increasing the face amount by the use of a(n)
Return of premium rider
Children's riders attached to whole life policies are usually issued as what type of insurance?
Term
When is the earliest a policy may go into effect?
When the policy is signed, and a check is given to the agent
What type of insurance would be used for a Return of Premium rider?
Whole life
hat is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?
$2,500
The term "illustration" in a life insurance policy refers to_____
A presentation of nonguaranteed elements in a policy
The premiums paid by the employer in a business life insurance policy are _______
Deductible to the emplyer
A rider attached to a life insurance policy that provides coverage on the insured's family members is called the ________?
Third party rider
An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement?
$200,000
If a life insurance policy develops cash value faster than a seven-pay whole life contract, it is
A modified endowment contract
Contracts that are prepared by one party and submitted to the other party on a "take it or leave it" basis are classified as
Contracts of adhesion
If an agent wishes to sell variable life policies, what license must an agent obtain?
Securities
What is the name of the insured who enters a viatical statement?
Viator
Within how many days of requesting an Investigative Consumer Report must an insurer notify the consumer in writing that the report will be obtained?
3 days
In a life settlement contract, whom does the life settlement broker represent?
The owner
If the policy owner, the insured, and the beneficiary under a life insurance policy are three different people, who has the ownership rights?
The policy ownder
The responsibility of making certain that an application for insurance is filled out completely, correctly, and to the best of his or her knowledge is the responsibility of whom?
The producer
Under an extended term nonforfeiture option, the policy cash value is converted to
The same face amount as in the whole life policy
If a consumer request additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
What is the waiting period on a Waiver of Premium rider in life insurance policies?
6 months
The two types of assignments are
Absolute and collateral
Universal Life Insurance policies are best described as __________
An annually renewable term policy with a cash value account
Which of the following is TRUE about nonforfeiture values?
They are required by state law to be included in the policy
Which of the following is TRUE for both equity indexed annuities and fixed annuities?
They have a guaranteed minimum interest rate
What is the purpose of establishing the target premium for a universal life policy?
To prevent the policy from lapsing
If only one party to an insurance has made a legally enforceable promise, what kind of contract is it?
Unilateral
Which type of life insurance policy allows the policy owner to pay more or less than the planned premium?
Universal Life
If an insured receives accelerated death benefits, what is the least amount of the original death benefit that the beneficiary would receive after the insured's death?
0%
The equity in an equity index annuity is linked to _____________
An index like Standard & Poor's 500.
In an annuity, the accumulated money is converted into a stream of income during which time period?
Annuitization period
An insurer wants to begin underwriting procedures for an applicant. What source will it consult for the majority of its underwriting information?
Application
Which policy component decreases in decreasing term insurance?
Face amount
Both Universal Life and Variable Universal Life have a
Flexible Premium
In a direct rollover, how is the money transferred from one plan to the new one?
From trustee to trustee
When would the insured be able to receive the full face amount from a whole life policy?
If the insured lives to age 100