Life Simulated Exam Attempt 1
An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of a report is that?
Inspection report
Under an extended term nonforfeiture option, the policy cash value is converted to
The same face amount as in the whole life policy
Which of the following is a key distinction between variable whole life and variable universal life products?
Variable whole life has a guaranteed death benefit.
Which of the following does NOT apply to variable contracts?
Insurers do not have to provide any financial information or history of the company
During partial withdrawal from a universal life policy, which portion will be taxed?
Interest
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 each renewal
An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?
The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.
The president of a manufacturing company has offered one of the company's officers a special individual annuity plan that is unavailable to lower-echelon employees. This plan would be funded with before-tax corporate dollars, and it does not meet government approval standards. This annuity plan is
A nonqualified annuity plan
Which of the following components must a life insurance policy have to allow policy loans?
Cash value
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
When a life insurance policy was issued, the policyowner designated a primary and contingent beneficiary. Several years later, both the insured and the primary beneficiary died in the same car accident, and it was impossible to determine who died first. Which of the following would receive the death benefit?
The insured's contingent beneficiary
A broker, no matter where located, may act as a broker for a life insurance producer in Hawaii so long as the producer has been licensed to sell life insurance for at least
1 year
After a credit life insurance loan is completed, within how many days must the policy be delivered?
30
A Universal Life Insurance policy is best described as a/an
Annually Renewable Term policy with a cash value amount.
An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?
False advertising
In conversion of group life insurance to individual insurance, all the following are true EXCEPT
The insured must show proof of insurability.
What is the purpose of a conditional receipt?
It is intended to provide coverage on a date prior to the policy issue.
Which of the following statements about the reinstatement provision is true?
It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated.