Indiana Life and Health Insurance Study Exam (xcelsolutions)
Which Provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health? -Modifcation -Conversion -Exchange -Adjustable
Conversion
J is 35-years old and looking to purchase a whole life insurance policy. Which of the following types of policies will provide the most rapid growth of cash value? -Life paid-up at age 70 -20 pay life -increasing Term to age 65 -Straight Line
20 Pay Life
Which of the following features of a group Term Life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability? -Owner's Right clause -incontestable period -insuring agreement -conversion privilege
Conversion Privilege
When a policyowner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply? -extended term option -conversion provision -1035 Exchange -incontestable period
Conversion Provision
The Universal Life pOlicy is called an unbundled Life Policy because the policyholder can see the expense charges, the interest earned, and the: -premium tax -dividend rate -values based on mutual funds or stocks -costs of insurance
Costs of Insurance
S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a minimum level or risk. Which product would S be advised to purchase? -Equity index insurance -Endowment -Graded whole life policy -return of premium policy
Equity index insurance
What kind of special need would a policyowner require with an Adjustable Life insurance policy? -Level premiums -flexibile premiums -flexible nonforfeiture options -level death benefits
Flexible premiums
Which of the following combination plans is designed to protect an insured from an unpaid mortgage balance upon premature death? -Survivor ship life -Family Plan -Joint Life -Whole Life and Level Term Rider
Joint Life
K is looking to purchase Renewable Term Insurance. Which of these types of Term Insurance may be renewable? -increasing -decreasing -adjustable -Level
Level
Which of the these would be considered a limited-pay life policy? -10 year renewable and convertibile term -Life paid-up at Age 70 -Straight Whole Life -Renewable Term to Age 100
Life-Paid up at Age 70
Which type of policy is considered to be over-funded, as stated by IRS guidelines? -Modified Whole Life -Modified Endowment Contract -Variable Universal Life -Interest-Sensitive Whole Life
Modified Endowment Contract
M purchases a 70,00 Life Insurance policy wiht premium payments of $550 a year for the first 5 years. At the beginning of the sixth year, the premium will increase to $800 per year but will remain level thereafter. The face amount will remain at 70,000 throughout the life of the policy. The type of policy that M has purchased is: - Adjustable Life -Indeterminate Premium Life -Grader Premium Life -Modified Premium life
Modified Premium Life
A father who dies within 3 years after purchasing a life insurance policy on his infant daughter can have the policy premiums waived under which provision? -Payer provision -Accelerated Benefits provision -Assignment provision -Waiver of Premium Provision
Payer provision
Which of the following characteristics is CORRECT about interest Sensitive Whole Life? -Premium payments can vary -there are no guaranteed minimum interest rates -Mortality charges do not impact the investment amount -interest rates never determine cash values
Premium payments can vary
Which statement is correct regarding the premium payment schedule for whole life policies? -Premiums are patable throughout the insured's lifetime/coverage lasts until death of the insured -Premiums payable for a set period/coverage expires at that point -Premiums are payable until age 65/coverage lasts a lifetime -A single premium is paid at time of application/coverage lasts until retirement
Premiums are payable throughout the insured's lifetime/coverage lasts until death of the insured
What type of life insurance are credit policies issued as? -whole -variable -term -universal
Term
The most important factor to consider when determining whether to convert term insurance at the insured's attained age or the insured's original age is: -the cost -the health of the insured -the amount of coverage being converted -who will be beneficiary
The cost
Which of the following types of policies BEST identifies one in which the cash value may fluctuate to reflect changing assumptions regarding mortality cost, interest, and expense factors? -Universal Life - Endowment Life -Modified Whole Life -Graded Premium Whole Life
Universal Life
Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? -Variable Life -Credit Life -Universal Life -Interest-Sensitive Whole Life
Variable Life
What kind of life insurance product covers children under their parent's policy? -family maintenance rider -term rider -family income rider -pavor benefit
term rider
