Insurance Exam: Chapter 3

Réussis tes devoirs et examens dès maintenant avec Quizwiz!

An individual purchased a $100,000 Joint Life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receive from the policy?

$100,000

Which statement is NOT true regarding a Straight Life policy?

Its premium steadily decreases over time, in response to its growing cash value

If a life insurance policy increases significantly in face amount (death benefit) when the insured reaches a specified age, what type of policy is this?

Jumping juvenile policy

A term insurance policy, with level premium and level death benefits, that provides coverage until the insured's 65th birthday, is what kind of contract?

Term-to-65

The policy owner of a Universal Life policy may skip paying the premium and the policy will not lapse as long as

The policy contains sufficient cash value to cover the cost of insurance

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

When an employee terminates coverage under a group insurance policy, coverage continues in force

For 31 days

All other factors being equal, the least expensive first-year premium payment is found in

Annually Renewable Term

The death protection component of Universal Life insurance is always

Annually Renewable Term

Which policy component decreases in decreasing term insurance?

Face amount (death benefit)

A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that?

Joint Life Policy

Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?

Limited pay whole life

To sell variable life insurance policies, an agent must receive all of the following EXPECT

SEC registration

An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?

Decreasing term

The policy owner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?

The death benefit can be increased by providing evidence of insurability


Ensembles d'études connexes

CH18 Kidney Clinical Assessment and Diagnostic Procedures

View Set

География 6 класс Параграф 28 Гидросфера и мировой океан

View Set

Chapter 15: Partnerships: Termination and Liquidation

View Set

WGU C955 - Module 6: Correlation & Regression

View Set