Life Insurance Basics
How often must an insurer send an update to their policy owners on the illustrations that they use
Annually
A policy that doesn't pay dividends to policy owners is referred to as a
Non participating policy
What kind of policy issues certificates of insurance to the insured
Group insurance
A projection of insurance needs that is based on the capitalization of an applicant's future earnings is a
Human Life Approach
What's the major difference between a Stock Redemption plan and a cross purchase plan?
In a stock redemption plan the INDIVIDUAL owns the policies in a cross purchase plan the ENTITY own the policies
Ibrahima wants to buy a life insurance policy that will provide lifetime protection against premature death. What type of insurance policy should he buy
Permanent
Who's responsible for all advertising regardless of their source of creation?
The Insurer
Who must pay for the state license exam expenses
The Licensee
If an applicant for a Life Insurance policy submits the completed application without the first premium payment when will coverage become effective
When the agent delivers the policy and collects the required premium with the insureds good health statement
If the applicant for a Life Insurance policy submits the application without the first premium payment when will coverage become effective
When the agent delivers the policy collects the required premiums and had the insureds Good Health Statement
When must the Buyers Guide be proposed to the selected insured
At the time of application
What is the benefit of an insurer investing the money received from premiums paid by the insured?
The investment can be used to lower premiums
Tim applied for a life insurance policy. He included the payment for the first premium with the application. Which of the following statements is correct?
The policy will be in effect the date of application provided the company acknowledges the receipt of premium with a conditional receipt and that Tim is found insurable
An applicant for a $1,000,000 life insurance policy was required to undergo HIV testing before the policy could be approved. If the results were negative and no physician was designated, where would the results be released
They wouldn't need to be released
Why would someone purchase life insurance over annuities?
To create an estate (Annuities are better for retirement)
If the policy owner for a life insurance policy is different from the insured what should the underwriter be concerned about?
Whether insurable interest exists between the individuals
