Insurance Pre-licensing : Chapter 3 quiz
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 for each renewal
A domestic insurer issuing variable contracts must establish one or more
separate accounts
An Adjustable Life policy owner can change which of the following policy features?
the coverage period
Which of the following are generally NOT considered when underwriting group insurance?
the insured's medical history
In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years
5 years
An insured purchased a variable life insurance policy with a face amount of %50,000. Over the life of the policy, stock performance declined, and the cash value fell to $10,000. If the insured dies, how much will be paid out?
$50,000
A Universal Life Insurance policy is best described as a/an
Annually Renewable Term policy with a cash value account
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 statements are correct regarding credit life insurance EXCEPT...
Benefits are paid to the borrower's beneficiary
The death benefit under the Universal Life Option B
Gradually increases each year by the amount that the cash value increases.
An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertibility options. When the insured renews the policy in 5 years, what will happen to the premium?
It will increase because the insured will be 5 years older than when the policy was originally purchased
A married couple owns a permanent policy that covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that?
Joint Life Policy
The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called..
credit life
Which of the following is NOT allowed in credit life insurance?
creditor requiring that a debtor buys insurance from a certain insurer
Under a 20-pay whole-life policy, in order for the policy to pay the death benefit to a beneficiary the premiums must be paid...
for 20 years or until death, whichever occurs first