Life Insurance Basics

A A lower premium B A higher premium BB C The same premium D a discounted premium

A substandard risk compared to a standard risk would pay

A Estate Liquidation AA B liquidity C Estate Conservation D Cash Accumulation

All of the following are personal uses of the life insurance EXCEPT

A Spouse B Child C Mother D Close Friend DD

All of the following would be considered insurance interest EXCEPT a

A key person policy AA B buy sell aggreement C group life plan D executive bonus plan

An example of business insurance when the business is the owner, pays the premium, and is the beneficiary is a/an

A buy sell agreement AA B key employee life policy C survivorship life D joint and survivorship life

Two business partners own life insurance on each other. If one partner dies which of the following contracts will allow the other partner to use the death benefit to purchase the deceased partners interest?

A Employer AA B Employee C Insurer D Agent

Under a single owner group life policy who receives the master contract?

A Mortality-interest B Mortality+expense-interest BB C Mortality+interest D Mortality-interest-expense

What factors are used to determine gross premium?

A Debt to income approach B human life value approach C Ordinary life approach D Needs Approach DD

When debt,income,mortgage, and expenses are taken into account to determine the amount of insurance an insured should purchase it is known as the

A Dividends are paid to policy owners AA B Dividends are paid to stockholders C The policy is issued by a stock company D The policy is issued by a fraternal benefit society

Which of the following is TRUE In regard to a participating policy?

A Equity Indexed Life B Adjustable Life C universal Life D Variable Life - DD

Which policy would require the producer to have a licensed issued by FINRA

A employer B corporation C insurance company D Employee dd

Who controls all rights in a life insurance policy in an executive bonus arrangement ?