ch 3 life insurance policies quiz

all of the following are true of variable products except ? a.the minimum death benefit is guaranteed b.the cash value is not guaranteed c.policyowners bear the investment risk d.the premium's are invested in the insurer's general account

d.the premium's are invested in the insurer's general account

the type of policy that can be changed from one that does not accumulate cash value to one that does is a.convertible term policy b.renewable term policy c.decreasing term policy d.whole life policy

a.convertible term policy

which type of life insurance policy generates immediate cash value a.decreasing term b.continuous premium c.single premium d.level term

c.single premium

which of the following describes annually renewable term insurance a.it requires proof of insurablity at each renewal b.neither the premium nor the death benefit is affected by the insured's age c.it provides an annually increasing death benefit d.it is level term insurance

d.it is level term insurance

which of the following would be the beneficiary in credit life insurance ? a.borrower b.creditor c.insured d.company

b.creditor

the death protection component of Universal Life Insurance is always a.increasing term b.annually renewable term c.whole life d.adjustable life

b.annually renewable term

all of the following could own group life insurance except a.group sponsored by an employer b.an alumni group c.a debtor group d.a group needing low cost insurance

d.group need low cost insurance

in which of the following cases would the insured be able to receive the full face amount from a whole life policy a.at age 65 b.if the insured lives to age 100 c. as soon as the cash value exceeds the face amount d.if there are no named beneficiaries when the policy is up

b.if the insured lives to age 100

which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated a.those who have no history of claims b.those who have been insured under the plan for at least 5 years c.those who worked in the company for at least 3 years d.those who have dependents

b.those who have been insured under the plan for at least 5 years

which of the following determines the cash value of a variable life policy ? a.the company's general account b.the policy guarantees c.the premium mode d.the performance of the policy portfolio

d.the performance of the policy portfolio

in group life policies certificates of insurance is given to a.the policyholder to keep on file b.each insured person c.the group sponser d.the insurance producer

b.each insured person

all of the following are true regarding the convertibility option under a term life insurance policy except ? a.upon conversion the premium for the permanent policy will be based upon attained age b.upon conversion the death benefit of the permanent policy will be reduced by 50% c.evidence of insurablity is not required d.most term policies contain a convertibility option

b.upon conversion the death benefit of the permanent policy will be reduced by 50%

an employee has a group life insurance policy through her employer. After 5 years she decides to leave the company and work independently How can she obtain an individual policy ? a.she will still be covered under the group plan but will have to pay an individual policy premium b.she can only convert her coverage without proof of insurablity if she has the master policy c.she must apply for a new policy which requires her proof of insurablity d.she can convert her group policy to an individual without proof of insurablity within 31 days of leaving the group plan

d.she can convert her group policy to an individual without proof of insurablity within 31 days of leaving the group plan

if an employee wants to enter the group outside of the open enrollment period to reduce adverse selection the insurer may a.require evidence of insurablity b.require a higher premium c.prolong the enrollment period d.increase medical requirements on existing members

require evidence of insurablity

which of the following features in index whole life policy is not fixed ? a.death benefit b.policy period c.cash value growth d.premium

c.cash value growth

the initial amount of credit life insurance may not exceed a.the amount to be repaid under the contract b.an amount set by statute and adjusted regularly for inflation c.the borrowers monthly income d.the borrowers annual income

a.the amount to be repaid under the contract

in a group life insurance the employer may select all of the following except ? a. the beneficiary b.the type of insurance c.the amount of insurance d.the premium payor

a.the beneficiary

which of the following would help prevent a universal life policy from lapsing ? a.adjustable premium b.corridor of insurance c.target premium d.face amount

c.target premium

which of the following is generally not considered when underwriting group insurance ? a.the insured's medical history b.the nature of the group c.the group's past claim experience d.the size of the group

the insured's medical history

an insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up what kind of policy is it ? a.graded premium life b.limited pay life c.variable life d.adjustable life

b.limited pay life

In a survivorship life policy when does the insurer pay the death benefit a.if the insured survives to age 100 b.upon the last death c.upon the first death d.half at the first death and half at the second death

b.upon the last death

which of the following has the right to convert to existing term coverage to permanent insurance a.beneficiary b.producer c.policyowner d.insurer

c.policyowner

which type of life insurance policy allows the policyowner to pay more or less than the planned premium a.variable life b.decreasing term c.straight whole life d.universal life

d.universal life

which of the following statements about group life is correct a.the policy can be converted to an individual term insurance b.the cost of the coverage is based on the ratio of men and women in group c.the premiums are higher than in an individual policy because there is no medical exam d.the group sponsor receives a certificate of insurance

.the cost of the coverage is based on the ratio of men and women in group

which of the following is not allowed in a credit life insurance a.creditor requiring that a debtor buys insurance from a certain insurer b.creditor having collateral assignment on the policy c.creditor requiring that a debtor has a life insurance d.creditor becoming a policy beneficiary

a.creditor requiring that a debtor buys insurance from a certain insurer

what type of life insurance is used in group plans ? a.annually renewable term b.whole life c.flexible premium whole life d.decreasing term

annually renewable term

an indvidual purchased a 100,000 joint life policy on himself and his wife. Eight years later,he died in an automobile accident . How much money will his wife recieve from the policy ? a.nothing b.50,000 c.100,000 d.200,00

c.100,000

which of the following policies will provide permanent protection ? a.credit life b.term life c.group life d.whole life

d.whole life

all of the following is true regarding group insurance except ? a.participants in the policy each receive a policy b.the group sponsor is the policy holder c.participants in the group plan are issued certificates of insurance d.small groups such as labor unions are eligible for the group

participants in the policy each receive a policy

all of the following are determined by group life insurance except ? a.certificate holders may convert to an individual policy without evidence of insurablity b.premiums are determined by the age,sex,and occupation of each individual certificate holder c.amount of coverage is determined to nondiscriminatory rules d.individuals covered under the policy receive a certificate of insurance

premiums are determined by the age,sex,and occupation of each individual certificate holder

which of the following is incorrect regarding a 100,000 20 year level term policy a.at the end of 20 years the policy's cash value will equal to 100,000 b.the policy premium will remain level for 20 years c.if the insured dies before the policy expired the beneficiary will receive 100,000 d.the policy will expire at the end of the 20 year period

a.at the end of 20 years the policy's cash value will equal to 100,000

the type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called a.decreasing whole life b.multiple protection insurance c.credit life d.credit health

c.credit life

All of the following are characteristics of a group life plan except ? a. minimum number of participants is required to write the plan b.the cost of the plan is determined by the average age of the group c. there is a requirement to prove insurability on the part of the participants d. the participants receive a certififcant of insurance as their proof of insurance

c. . there is a requirement to prove insurability on the part of the participants

the policy owner of a universal life policy may skip paying the premium and the policy will not lapse as long as a.the policyowner can not skip premiums without policy lapsing b.the next months premiums is sufficient to cover both the current premium amount and the skipped amount c.the policy contains sufficient cash value to cover the cost of the insurance d.the previous payments were high enough to create an excess of premium

c.the policy contains sufficient cash value to cover the cost of the insurance

if the owner of a whole life policy who is also the insured dies at age 80 and there are no outstanding loans on the policy what portion of the death benefit will be paid to the beneficiary a.50% of the death benefit b.the face amount minus the premiums that would have been collected until the insured reach the age of 100 c.a full death benefit d.a death benefit equal to to cash value of the policy

c.a full death benefit