Nevada Life: Day 2

The insured is also the policyowner of a whole life policy. What age must the insured attain in order for the policy to mature and receive the policy's cash value?

100

Which type of flexible policy allows the insured to change the amount of death benefit, premium or the type of coverage as their needs change?

Adjustable Life

Level term insurance provides a level death benefit and a level premium during the life of the policy term. If the policy renews or convert at the end of the policy term, the policy premium will be

Adjusted to the insured's age at the time of renewal or conversion

A type of annuity that begins payment to the annuitant after one year from the date of purchase

Deferred annuity.

An agent selling variable annuities must be registered with

FINRA

What does level, decreasing & increasing refer to in term insurance?

Face amount

What is the best way to describe the premium of a universal life policy?

Flexible

What is considered fix in an Indexed type investment?

It has a fix guaranteed minimum interest rate.

A deferred annuity can be purchased with a single or periodic premium. Which two terms are associated with periodic premium payment options for annuities?

Level or flexible

An insured has a life insurance policy that requires him to pay premiums for a specified number of years until the policy is paid up and continues to provide protection after the premium paying period has ended is called a

Limited pay policy

An annually renewable term policy

Renews each year with an increased premium and the face amount stays the same

Equity indexed annuities

Seek higher returns

Which two terms are associated directly with the way an annuity is funded?

Single payment or periodic payments

Which type of life insurance policy can be purchased with a one time lump sum payment and generates immediate cash value?

Single premium

The time period during which the annuitant starts to receive payments from an annuity is called

The annuity period

All of the following are characteristics of variable life policies EXCEPT

The cash value is guaranteed

Which of the following statements is correct regarding a whole life policy?

The policyowner is entitled to policy loans

Which of the following best describes target premium in a universal life policy?

The recommended amount to keep the policy in force throughout its life time

A universal life policy allows the policyowner to skip paying a premium and the policy will not lapse as long as

There is enough cash value in the policy to cover the premium amount

A policy that is a combination of annually renewabfe term and cash value that grows at current interest rates is

Universal life

Which type of policy has two death benefit options?

Universal life

Selling which of the following policies would require. both a life license and a Securities license?

Variable Life

All of the following are examples of a limited pay policy EXCEPT

20 Year Term

A Straight Life policy has what type of premium?

A level annual premium for the life of the insured

Whose life expectancy is taken into consideration in an annuity?

Annuitant

A contract that can provide income for a specific period of years, or for life and protect against outliving your money is a/an

Annuity

Which of the following is a feature of a variable annuity?

Benefit payments are not guaranteed

A level term, level premium policy is a type of policy where

Both the coverage and the premiums stays level

What provision allows the policyowner at the end of the term the right to change the policy to a Whole Life or permanent insurance policy without evidence of insurability?

Convertible provision

What characteristic makes whole life permanent protection?

Coverage till age 100

A type of annuity that begins payment to the annuitant within one year

Immediate annuity.

Which of the following is NOT a type of whole life ihsurance?

Increasing term

What are the two components of a universal policy?

Insurance and cash account

Which of the following is TRUE regarding the accumulation period of an annuity?

It is a period during which the payments into the annuity grow tax deferred.

Which of the following best describes an annually renewable term insurance?

It is level term insurance

Which Universal Life option has a level death benefit and a required IRS corridor between the face amount and the cash value?

Option A

Which Universal Life option has an increasing death benefit?

Option B

The cash value of a life insurance policy belongs to which of the following?

Policyowner

All of the following statements about term insurance are correct EXCEPT

Premiums can be adjusted upon the policyowner's request

What is true regarding the premium of a whole life policy

Remains level

A life insurance policy covering the lives of two or more people designed to pay proceeds only after the last person dies is called

Survivorship life.

All of the following entities regulate variable life policies EXCEPT

The Guaranty Association

How are premiums and coverage effected in a Decreasing Term policy?

The coverage decreases gradually but the premiums stay the same

What is true regarding an increasing term policy

The coverage increases gradually but the premiums stay the same

Who bears the investment risk in variable life insurance products?

The policy owner

The main difference between immediate and deferred annuities is

When the income payments begin

A life insurance policy that is a combination of a Decreasing Term with a Cash Value

Whole Life

In the Variable Life Policy, where are premiums deposited after expenses are deducted?

separate account

Alife insurance policy covering the lives of two or more people designed to pay proceeds after the first person dies is called

Joint life.

Which of the following is NOT a term for the period of time during which the annuitant receives income?

Depreciation period

During which of the following annuity periods does an insured make monthly contributions to the annuity for retirement purposes?

Accumulation period

The insurance component of a Universal Life policy is what type of insurance?

Annual Renewable Term

When the insured purchased a new home, he wanted to purchase a life insurance policy that would protect his family against losing it should he die before the mortgage was paid. Which of the following policy is best suitable for that need?

Decreasing term

Which of the following is a characteristic of an equity indexed annuity?

Interest rates are often associated with a stock index like the S&P 500

With a whole life policy, the death benefit

Is fixed and garaunteed

In whole life insurance, which of the following terms describes features such as cash values and loan provisions?

Living benefits

If the annuitant dies during the accumulation period, who will receive the annuity benefits?

The Beneficiary

All of the following are parties to an annuity EXCEPT

The agent

All of the following are true regarding a partial surrender on a universal life policy EXCEPT

The amount needs to be paid back with interest

What is annually renewing in a universal policy

The annually increasing cost of insurance

Which of the following statements is TRUE regarding an annuity?

The annuitant must be a natural person

An Immediate Annuity has no accumulation period which means it can only be purchased

With a single premium.

All other factors being equal, how would the premium in a survivorship life policy compare to the premium in a joint life policy?

It will be lower

Which of the following is true regarding joint & survivorship life policies?

Its designed to insure two or more lives and the premium is based on the average age

All of the following are types of term insurance depending on how the face amount changes during the policy term EXCEPT

Renewable Term

What provision allows the policyowner at the end of the term the right to continue coverage for another term without proof of insurability?

Renewable provision

If a term life policy is convertible, that means that at the end of the policy term, the policyowner may convert coverage to

a whole life or permanent policy only

The most common type of whole life insurance where premiums are payable over the whole life of the insured to age 100 is called

continuous premium (straight) life