Life insurance exam 2

A higher premium

A substandard risk compared to a standard risk would pay

A percentage of the face amount of the policy

A viatical settlement is a transaction outside the life insurance company where the owner sells the life insurance policy for which of the following?

The plan is funded by permanent insurance only

All of the following are true of key person insurance EXCEPT

Insured's close friend

All the following may have an insurable interest in the insured EXCEPT

On the date of the application

An insured submits the full premium along with a completed application for life insurance. Once the policy is issued, when does the coverage begin?

Policy delivery

If no receipt is issued at the time of application, a statement of good health is usually required at the time of

The life expectancy of the proposed insured

Life insurance companies use mortality tables to predict

Survivor protection

Life insurance death benefits can be used to fund funeral and other expenses that could be otherwise difficult to fund with a loss of the insured's income. Which term is most closely associated with this?

A source of medical information to alert insurers to adverse medical history

The Medical Information Bureau (MIB) is

Needs approach

The approach to determining the amount of personal life insurance that an applicant needs that considers such factors as the costs associated with death, costs of educating children, and costs of housing is called the

Date of application

When must insurable interest exist in life insurance?

Monthly

Which of the following premium payment modes would result in the highest overall premium for life insurance?

Blackout period

Social security benefits are available for a surviving spouse until the youngest child reaches age 16. Benefits are later resumed when the surviving spouse reaches the retirement age. What is the time period called during which the surviving spouse does not receive benefits?

Policy summary

Which of the following documents describes specific information about policy provisions

Race

Which of the following factors is NOT considered by an underwriter when determining the premium rates for an individual seeking insurance?