Insurance Exam: Chapter 2
which of the following policies would have an IRS required corridor or gap b/w the cash values and the death benefit
Universal life- Option A
the type of policy that can be changed from one that does accumulate cash value to the one that does
convertible term policy
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
"second-to-die" policy?
survivorship life
which of the following determines the cash value of a variable life policy?
the performance of the policy portfolio
when would a 20-pay whole life policy endow?
when the insured reaches age 100
The insured is also the policyowner of a whole life policy. What age must the insured attain in order to receive the policy's face amount?
100
twin brothers are starting a new business. They know it will take several years to build the business to the point they can pay off the debt incurred 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 insured purchased a life insurance policy. The agent told him that depending upon the company investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/an
interest sensitive whole life
Why is an equity indexed annuity considered to be a fixed annuity?
it has a guaranteed minimum interest rate
all of the following are true about variable products EXCEPT?
the premiums are invested in the insurers general account
which of the following best defines target premium in a universal life policy
the recommended amount to keep the policy in force throughout its lifetime
A domestic insurer issuing variable contracts must establish one or more
separate accounts
all the following statements about equity index annuities are correct EXCEPT?
the annuitant receives a fixed amount of return
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
the beneficiary