Test

Under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive

Nothing; the payments will cease.

The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the

One-year term option.

The initial amount of credit life insurance may NOT exceed

-- The amount to be repaid under the contract

For how many years must insurance producers keep records of written disclosures regarding producer compensation? a) 1 year b) 3 years c) 5 years d) 7 years

5 years

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

As of the application date

Which of the following includes information regarding a person's credit, character, reputation, and habits? a) Agent's report b) Consumer report c) Consumer history d) Insurability report

Consumer Report

When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?

Equal to the original policy for as long as the cash values will purchase.

What does "level" refer to in level term insurance?

Face Amount

Which Universal Life option has a gradually increasing cash value and a level death benefit?

Option A

If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a

Settlement option

Which of the following Life Insurance policies would be considered interest sensitive?

Universal Life

A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as

survivor protection