Basics of Life Insurance Quiz

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

In life insurance contracts, when must insurable interest exist? a. only at the time the policy is purchased b. at the time the policy is purchased and at the time the loss occurs c. only at the time that the loss occurs d. it does not need to exist in life insurance contracts

a. only at the time the policy is purchased

Which of the following state the purpose of life insurance is to replace the economic value of an individual? a. the human life value principle b. th eincome needs principle c. the needs approach d. the business needs approach

a. the human life value principle

The preretirement period, one of the distinct income needs periods, is also known as the a. expense period b. blackout period c. cash needs period d. family dependency period

b. blackout period

Which of the following types of insurance has premiums that are due weekly and are collected in person by producers who go door to door? a. home service life insurance b. industrial life insurance c. term life insurance d. permanent life insurance

b. industrial life insurance

Living and death benefits, level premiums and lifetime coverage are characteristics of which of the following classes of insurance? a. industrial life insurance b. permanent life insurance c. term life insurance d. home service life insurance

b. permanent life insurance

which of th efollowing classes of life insurance has a death benefit only, increasing premiums and temporary coverage and expires at end of the term? a. variable life insurance b. permanent life insurance c. term life insurance d. home service life insurance

c. term life insurance

all of the follwing are examples of insurable interest except a. amy would like to buy a life insurance policy on her business partner b. michael and megan would like to buy a life insurance policy for each of their children c. tom would like to buy life insurance on his best friend d. sue would like to buy life insurance on her spouse

c. tom would like to buy life insurance on his best friend

the assets left behind after an individuals death is known as a. debt b. financial obligations c. liquidity d. an estate

d. an estate

The buy-sell agreement, the life insurance policy is written on the a. family of the business owner b. business c. person who will buy the business in the event that the owner dies d. business owner's life

d. business owner's life

All of the following are examples of buy-sell agreements except a. stock redemption plan b. cross-purchase plan c. entity plan d. executive bonus plan

d. executive bonus plan

Which of the following terms refers to how easily an asset can be turned into cash without loss of value? a. hard assets b. estate conservation c. estate creation d. liquidity

d. liquidity

Which of the following factors does NOT have an effect on the insurance premium rates? a. mortality or morbidity b. expenses c. interest rates d. producer certification

d. producer certification

Life insurance premiums are lowest under which premium payment mode? a. semi-annual b. monthly c. annual d. quarterly

c. annual

when the owner of a life insurance policy is not insured, there are three parties to the contract. which of the following is not a party to this type of contract? a. applicant b. insurer c. beneficiary d. insured

c. beneficiary

Which of the following describes an employer that agrees to pay an employee a stated amount of income beginning at retirement rather than paying them money now? a. buy sell agreement b. executive bonus plan c. deferred compensation plan d. key person coverage

c. deferred compensation plan

The number of individuals who die each year at a give age is also known as a. actuaries b. morbidity c. mortality d. expenses

c. mortality

all of the following are names of distinct income need periods except a. family dependence b. retirement c. social security d. preretirement

c. social security

Which of the following is NOT a personal use of life insurance? a. cash accumulation b. mortagage payoff c. third pary ownership d. estate creation

c. third party ownership

which of the following premiums is the mortality element minus the interest element? a. net premium loaded premium c. gross premium d. fixed premium

a. net premium


Kaugnay na mga set ng pag-aaral

CCNA Routing and Switching Essentials Chapter 2

View Set

Ch 9: Material Requirements Planning

View Set

Chapter 1 Quiz--Business Policy (Williamson)

View Set

The Study of Language: Chapter 07 - Grammar

View Set

Chapter 18 Interactive and Case Studies Marketing 021 Ybarra

View Set

cell bio final test bank questions chp 19-21

View Set

Human Development Chapter 7 Study Guide

View Set

Chapter 17: Health Problems of School-Age Children and Adolescents

View Set