Chapter 2 Business
Which of the following statements is Not true concerting insurable interest as it applies to life insurance?
A debtor has an insurable interest int he life of a lender
Which of the following is an example of liquidity in a life insurance contract?
The cash value available to the Policyowner.
Jason wants to advertise his life insurance practice. Which of the following must he include in his advertisements?
The name of the city in which he has his principle office
Who is th owner and who is the beneficiary on a key person life insurance policy?
The employer is the owner and beneficiary
Which of the follow is not true regarding the needs approach method of determining the value of an ingdiciuaduls life?
Need is predicted using the number of cars until the insured retirement
All of the following are business uses of life insurance except
Funding against companies general financial loss
The Medical Information Bureau (MIB) was created to protest
Insurance companies from adverse selection by high risk persons
Attempting to determine how much insurance an individual would require based upon their financial objectives is known as?
Needs approach
During replacement of life insurance, a replacing insurer must do which of the following?
Obtain a list of life insurance polices that will be replaced
Which of the following is usually true of a participating life insurance policy?
Pays dividends to policy owners
Which of the following will be included in a policy summary?
Premium amounts and surrender values
A producer is helping a married couple determine the financial needs of their chilled in the even one or both should die prematurely. This is a person use of lie insurance known as
Survivor protection
When is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent
Steven prints a pamphlet to advertise his life insurance business. In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. What else must he include?
Address of his principle office
The premium was submitted with the application for the 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 statements regarding HIV testing for the insurance purposes is not true?
Insures are barred from requesting HIV testing
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT
signed wavier of premium
All of the following are true of key person insurance except
the plan is funded by permanent insurance only
When Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. During the underwriting process, the insurance company found no reason to reject the risk or classify it other than as standard. Y was killed in an automobile accident on August 22, before the policy was issued. In this case, the insurance company will
Issue the policy anyway and pay the face value to the beneficiary
What does liquidity refer to in a life insurance policy?
Cash values can be borrowed at a time
Which of the following types of insurance policies would perform the function of cash accumulation?
Whole life
Which of the follow is not an example of a business use of life insurance
Workers Compensation