Missed Questions - Life Guarantee Exam
A new homebuyer wants to purchase a life insurance policy that would protect his family against losing the home, should he die before the mortgage was paid. The most inexpensive type of policy that would accomplish this need is...
Decreasing term
If an insurance company issues a policy even though some of the questions are unanswered, what happens?
Nothing; the applicant has waived their right to answer those questions.
When group insurance is provided by an employer, what is the minimum number of employees that must be covered on the date of issue?
2
If an individual willfully violates provisions of the Fair Credit Reporting Act, what is the maximum penalty?
2500
A whole life insurance policy must contain some cash value that may be borrowed by the policyowner after it has been in force for _________ years.
3
How long must insurers keep disclosure documents?
3 years
How long must insurers maintain a copy of each disclosure document?
3 years
When the policyowner receives a receipt from the agent, the agent must get...
A signed delivery receipt
All of the following are examples of a policy replacement except...
A term policy being converted to whole life
Which of the following documents used in the underwriting process contains specific medical details about an applicant?
Attending Physician's Statement (APS)
Which provision, when added to the policy, insures that the policy will not lapse so long as there is cash value?
Automatic premium loan
Wha type of an interest rate is guaranteed in universal life policies?
Contract interest rate
All of the following statements about ordinary (straight) life are true EXCEPT
It does not have a guaranteed death benefit
If a retirement plan or annuity is qualified, it means...
It satisfied IRS requirements for favorable tax treatment
When comparing a joint life policy to two individual policies in the same amount, which has the lower premium?
Joint life
Which of the following types of insurance products would be appropriate for an individual with a low income and high insurance needs?
Term insurance ***Term insurance is pure protection.
What is untrue about group life insurance policies?
The employer is the beneficiary
Which statement is an accurate description of life insurance policy dividends?
They are not taxable and are not guaranteed.
Life insurance disclosure rules apply to which type of policy?
Whole life
cash value guarantees in a whole life policy are called
nonforfeiture values
With Adjustable Life, the owner can change all of the following EXCEPT
the insured
