Unit 6 Checkpoint Exam

A withdrawal from a life insurance policy is also known as A) a partial surrender B) an accumulation C) a loan D) a deduction of face value

A

Samantha, a policyowner, did not specifically indicate how she would like her settlement to be paid upon her death. If Samantha dies, how would her life insurance be paid out to a beneficiary A) in a lump sum B) interest income only C) life income D) fixed amount

A

Which of the following is NOT one of the 3 nonforefeiture options A) extended whole life insurance B) extended term insurance C) reduce paid-up insurance D) cash surrender

A

With the life with period certain settlement option, if the beneficiary dies before the end of the selected payout period, payments A) continue to another person for the rest of the payout period B) continue for the rest of the contingent beneficiary's life C) stop and the rest of the money goes to the insurer D) stop and are paid to the agent

A

All of the following statements about withdrawals are true EXCEPT A) withdrawals are allowed on universal life policies B) withdrawals can be repaid C) withdrawals will result in the reduction of the death benefit amount D) withdrawals will result in the reduction of the cash value

B

James and his spouse, Paula, have a policy that continues paying a benefit for as long as either beneficiary lives. Which of the following settlement options do James and Paula have? A) life with refund settlement option B) joint and survivor life settlement option C) life income settlement option D) life with period certain settlement option

B

Which of the following provisions will protect the insured if he fails to pay the policy premium by the end of the grace period A) accumulate interest provision B) automatic premium loan provision C) premium pay provision D) policy loan provision

B

Which of the following is NOT one of the 3 factors used to determine the minimum length of the payment period with the fixed amount settlement option A) a guaranteed interest rate B) the chosen payment amount C) the age of the insured D) the amount of death benefit

C

Which of the following settlement options pays a stated amount of interest on the money at regular intervals A) life income option B) fixed amount option C) life with period certain D) interest income (only) option

D