ch1 quiz

Interest-sensitive whole life.

An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is

Securities

If an agent wishes to sell variable life policies, what license must the agent obtain in addition to a life insurance license?

100

The insured is also the policyowner of a whole life policy. What age must the insured attain in order to receive the policy's face amount?

Decreasing term.

When the insured purchased a new home, he wanted to purchase a life insurance policy that would protect his family against losing the home should he die before the mortgage was paid. The most inexpensive type of policy that would accomplish this need would be

Premium is based on the average age of the insured.

Which of the following is true regarding a joint life policy?

If the insured dies after the end of the term, there is no death benefit to the beneficiary.

Which of the following is true regarding term insurance?

Graded premium whole life

Which of the following policies has a premium that is lower in the early years of the policy and then increase over time to a point where it becomes level for the remainder of the policy?

Variable

An insured receives a monthly summary regarding his life insurance policy. He notices that the cash value of the policy is significantly lower this month than it was last month. What type of policy does he have?

Life paid-up at age 65

Which of the following is an example of a limited-pay life policy?

Family income policy

Which policy combines decreasing term insurance with whole life insurance to provide the insured's family with a monthly income upon the death of the insured, while maintaining permanent coverage until the end of the income payments?

Remains constant over time.

With a traditional whole life policy, the death benefit

Universal Life, Option B.

A policy that allows the beneficiary to collect both the death benefit and cash value upon the death of the insured is

Renews each year with an increased premium.

An annually renewable term policy

The death benefit can be increased by providing evidence of insurability.

An individual owns an adjustable life policy. Sometime in the future he wants to increase the death benefit. Which of the following statements is correct regarding this change?

Single premium whole life.

An insurance policy that only requires a payment of premium at its inception and provides insurance protection for the life of the insured and endows at the insured's age 100, is called