Utah Life and Health Exam- Chapter 3: Life Insurance Policies
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
When an employee terminates coverage under a group insurance policy, coverage continues in force...
For 31 days.
All other factors being equal, which of the following terms best describe the coverage provided by term policies, as compared to any other form of protection?
Greatest
A return of Premium term life policy is written as what type of term coverage?
Increasing.
The Waiver of Cost of Insurance rider is found in what type of insurance?
Universal Life. If the insured becomes disabled, the rider allows the cost of insurance to be waived, with the exception of premium costs required to accumulate cash value.
Which of the following Life Insurance policies would be considered interest sensitive?
Universal life.
An employee is insured under her employer's group life plan. If she terminated her group coverage, which of the following statements is INCORRECT?
The insured may choose to convert to term or permanent individual coverage.
A Straight Life policy has what type of premium?
A level annual premium for the life of the insured.
Which of the following types of insurance policies is most commonly used in credit life insurance?
Decreasing term.
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.
A domestic insurer issuing variable contracts must establish one or more...
Separate accounts.
Which of the following statements about group life is correct?
The cost of coverage is based on the ratio of men and women in the group.
Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?
Universal life.
A Universal Life Insurance policy is best described as a/an...
Annually Renewable Term policy with a cash value account.
A Universal Life Insurance policy has two types of interest rates that are called?
Guaranteed and Current.
All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?
Lower
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.
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?
The insurer will pay the full death benefit from the group policy to the beneficiary.
Which of the following features of the Indexed Whole Life policy is NOT fixed?
Cash value growth.
Credit Life Insurance...
Insures the life of a debtor.
Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?
Limited pay whole life.
All of the following could own group life insurance EXCEPT...
A group needing low-cost life insurance.
Which of the following is TRUE about credit life insurance?
Creditor is the policyowner.
What is the purpose of establishing the target premium for a universal life policy?
To keep the policy in force.
An employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his...
Attained Age.
All of the following are characteristics of group life insurance EXCEPT...
Premiums are determined by the age, sex and occupation of each individual certificate holder.
At age 30, an applicant wants to start an insurance program, but realizing that his insurance needs will likely change, he wants a policy that can be modified to accommodate those changes as they occur. Which of the following policies would most likely fit his needs?
Adjustable Life
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.
All of the following are true about variable products EXCEPT...
The premiums are invested in the insurer's general account.
A group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for a group life insurance, they were rejected. Why?
The purpose of the group was to purchase life insurance.
Which of the following best describes annually renewable term insurance?
It is level term insurance.
Term policies are available as Level, Increasing, and Decreasing. Which policy component fluctuates depending on the policy type?
Death Benefit.
Variable Life insurance is based on what kind of premium?
Level fixed.
Concerning Juvenile Life Insurance, which of the following statements is INCORRECT?
Juvenile Life is classified as any life insurance purchased by a minor.
Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?
Joint Life.
An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age of 100 is called?
Single premium whole life.
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?
Level term.
The policyowner of a Universal Life policy may skip paying the premium and the policy will not lapse as long as...
The policy contains sufficient cash value to cover the cost of insurance.
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?
Limited-pay Life.