Chapter 7
Policies that have a savings component
Annuity, Adjustable life, whole life
Which of the following options may allow a vanishing premium in life insurance policies?
Dividends
Incontestability, consideration and payment of premiums are examples of policy
Provisions
premium rates for individual seeking insurance determination
Sex, age, medical history. Race does not matter
Which of the following types of life insurance refers to temporary protection that only lasts for a specified period of time?
Term life
In group life coverage, which of the following holds the master contract?
The employer
Who has all the rights in the insurance policy
The policy owner
What is the purpose of blanket life insurance?
To cover groups of people who are exposed to a common hazard
The purpose of the reinstatement provision is
To determine the process for reactivating coverage once a policy has lapsed
The multiple income calculation method takes which of the following into account?
annual earnings
A term life insurance policy that may be changed into a whole life insurance policy is
Convertible
Which of the following provisions allows the policyowner to return the policy for a full refund of premium is dissatisfied for any reason?
Free look
A term policy would be preferable to a whole life policy when the individual wants the policy to
Have the largest death benefit for the smallest premium
Units with the same or similar exposure to loss are referred to as
Homogeneous
Liability is usually determined by proving:
negligence
Which of the following types of life insurance coverage is designed for groups of people who are exposed to a common hazard?
Blanket
In a group insurance policy, each member receives a document that provides evidence of coverage under the contract. What is the name of this document?
Certificate of insurance
Which of the following life policy provisions allows the insured to return the policy for a full refund of premium within a specified number of days?
free look
Which of the following is true regarding the master policy?
it is issued to the sponsor of the group