Life Policies

Life insurance policy illustrations must contain all of the following, EXCEPT: Select one: a. Agent's name b. Only the guaranteed policy elements c. Generic name of policy d. Insured's age and sex

b. Only the guaranteed policy elements

Which policy cost comparison method compares the projected policy cash value to premiums paid after a certain number of years? Select one: a. Comparative interest rate method b. Surrender cost index c. Net payment cost index d. Loss ratio method

b. Surrender cost index

Securities licenses are obtained through: Select one: a. State insurance department b. FINRA c. SEC d. SSA

b. FINRA

A life insurance policy is considered replaced if: Select one: a. An existing life insurance policy is lapsed, forfeited, surrendered or terminated b. Converted to reduced paid-up insurance c. Reissued with a reduction in cash value d. All of the above

d. All of the above

All of the following are considered minimum information that must be on a life insurance illustration, EXCEPT: Select one: a. Form number b. Dividend options, if any c. Nonguaranteed elements, if any d. Insured's marital status

d. Insured's marital status

Angela took out a $2,000 policy loan from her whole life insurance policy. The policy face amount is $200,000. If Angela does not repay the loan, how will the death benefit be affected? Select one: a. The death benefit will be increased by $2,000. b. The death benefit will be decreased by $2,000. c. The death benefit will remain the same. d. The death benefit will be decreased by $2,000 plus interest.

d. The death benefit will be decreased by $2,000 plus interest.

Which of the following is false regarding life insurance policy illustrations? Select one: a. Illustrations are part of the insurance contract. b. The insurance agent cannot make any changes to policy illustrations. c. The insurer must approve policy illustrations. d. Life insurance illustrations must differentiate between guaranteed amounts and nonguaranteed amounts.

a. Illustrations are part of the insurance contract.

Which of the following does not constitute policy replacement? Select one: a. Life insurance coverage that is converted to reduced paid-up coverage b. Life insurance coverage in which a loan is not repaid to the insurer c. Life insurance coverage that is terminated d. Life insurance coverage that is lapsed

b. Life insurance coverage in which a loan is not repaid to the insurer

All of the following are true regarding insurance policy illustrations, EXCEPT: Select one: a. Illustrations must be approved by the insurer. b. The agency contract permits the agent to make changes to policy illustrations. c. Illustrations show the relationship between premiums, cash value, interest, and mortality charges. d. Illustrations are not part of the insurance contract.

b. The agency contract permits the agent to make changes to policy illustrations.

All of the following rules apply to life insurance illustrations, EXCEPT: Select one: a. The illustration must clearly indicate that it is a life insurance illustration. b. The insurer's and producer's names must be on the illustration. c. The illustration must indicate the date. d. Illustrations may use the term vanishing premium, even if the policy does not have a vanishing premium.

d. Illustrations may use the term vanishing premium, even if the policy does not have a vanishing premium.

What will the insurer do if the insured dies during the grace period of a life insurance policy? Select one: a. Void the policy b. Cancel the policy and return the premiums, plus interest, pro rata to the insured's beneficiary c. Pay the full death benefit d. Pay the death benefit, but deduct the amount of the overdue premium

d. Pay the death benefit, but deduct the amount of the overdue premium

All of the following are true regarding claims for life insurance policies, EXCEPT: Select one: a. The only claim in a life insurance policy is the insured's death. b. Upon the insured's death, the policy proceeds are paid to the beneficiary. c. In order for death benefits to be paid, the insurer must receive notice of the insured's death, but does not need the death certificate. d. Life insurance claims are typically paid within a few days of the insured's death, but the insurer may have up to 60 days to pay claims.

c. In order for death benefits to be paid, the insurer must receive notice of the insured's death, but does not need the death certificate.

Policy replacement is defined as all of the following, EXCEPT: Select one: a. Terminated coverage b. Lapsed coverage c. Policy loan that is not repaid d. Converted to reduced paid-up coverage

c. Policy loan that is not repaid

Saul wants to sell variable life insurance products. Which license(s) must he hold? Select one: a. Life and variable products license b. Life and health license c. Securities license d. Life and variable products and securities licenses

d. Life and variable products and securities licenses

A life insurance policy summary includes all of the following, EXCEPT: Select one: a. The insurance agent's name b. Policy premium amounts c. Policy loan interest rates d. Policy illustrations

d. Policy illustrations

The nonguaranteed elements of an insurance policy are: Select one: a. Illustrations b. Policy summary c. Policy face d. Policy terms and conditions

a. Illustrations

For replacement transactions, an insurance producer's duties include all of the following, EXCEPT: Select one: a. Notify existing insurers of policies to be replaced b. Provide the applicant with a policy cost comparison statement c. Make a list of all existing policies the applicant intends to replace d. Leave a notice regarding replacement with the applicant

a. Notify existing insurers of policies to be replaced

Which document is a statement of what is covered by an insurance policy, and includes the name and address of the insurer and agent, the name of the policy, and lists specific information about the policy's coverage's? Select one: a. Illustrations b. Non-guaranteed elements of a policy c. Policy summary d. Policy face

c. Policy summary