Chapter 2 pre license
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid
For 20 years or until death, whichever occurs first
The premium of a survivorship life policy compared with compared with that of a joint life policy would be
Lower
All of the following entities regulate variable life policies EXCEPT
The Guaranty Association
Which of the following is TRUE regarding variable annuities
The annuitant assumes the risks on investment
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
The beneficiary
Which of the following is NOT true regarding a variable Universal Life policy
The death benefit is fixed
It has a guaranteed minimum interest rate
Why is an equity Indexed annuity considered to be a fixed annuity?
Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be
Adjusted to the insured's age the time of renewal
Which of the following is a feature of a variable annuity
Benefit payment amounts are not guaranteed
What license or licenses are required to sell variable annuities?
Both a life insurance license and a securities license
Which of the following best describes annually renewable term insurance
It is level term insurance
Which Universal Life option has a gradually increasing cash value and a level death benefit?
Option A
Which of the following best describes annually
Policyowner
which of the following has right to convert the existing term coverage to permanent insurance
Policyowner
Which of the following best describes what the annuity period is
The period of the time during accumulated money is converted into income payments
All of the following are true about variable product EXPECT
The premiums are invested in the insurer's general account
Single Premium Whole Life
An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100 is called
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 a/an
Interest-sensitive Whole Life
Which of the following is an example of a limited-pay life policy
Life Paid-up at age 65
which of the following has the right to convert the existing term coverage to permanent insurance
Policyowner
All of the following are true regarding a decreasing term policy EXCEPT
The payable premium amount steadily declines throughout the duration of the contract
All of the following are true regarding a decreasing term policy except
The payable premium amount steadily declines throughout the duration of the contract
which of the following policies would have an IRS required corridor or gap between the cash value and the benefit
Universal Life - Option A
Which type of life insurance policy allows the policyowner to pay more or less than the planned premium
Universal life
All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT
Upon conversion, the death benefit of the permanent policy will be reduced by 50%
In a survivorship life policy, when does the insurer pay the death benefit
Upon the last death
An individual has been making periodic premium payments of an annuity. The annuity income payments are scheduled to begin after 1 year since annuity was purchased. what type of annuity is it
Deferred
Which of the following is True regarding variable annuities
The annuitant assumes the risks on investment
The payable premium amount steadily declines throughout the duration of contract
All of the following are true regarding are true regarding a decreasing term policy EXCEPT
Which statement is NOT true regarding a Straight Life policy
Its premium steadily decreases over time, in response to its growing cash value
A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of insured. which policy is that
Joint life policy
When would a 20-pay whole life policy endow
when the insured reaches age 100