Life insurance 🤎

Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income?

Depreciation period

Moral Hazard

Dishonest client

Material Fact

Effects underwriting decision

An annuity owner is funding an annuity that will supplement her retirementBecause she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 IndexShe would likely purchase a

Equity indexes annuity

What is the purpose of the buyer's guide?

To allow the consumer to compare the costs of different policies

Why should the producer personally deliver the policy when the first premium has already been paid?

To help the insured understand all aspects of the contract

Convertible Provision

provides the policy owner with the right to convert the policy to a permanent insurance policy without evidence of insurability

An insured committed suicide one year after his life insurance policy was issued. The insurer will

refund the premiums paid

A domestic insurer issuing variable contracts must establish one or more

separate accounts

The interest earned on policy dividends is

taxable

Which of the following is TRUE regarding the premium in term policies ?

the premium is level

Representations

the truth to the best of your knowledge and belief

During partial withdrawal from a universal life policy, which portion will be taxed?

to interest

aleatory

unequal exchange

Which of the following types of policies will provide permanent protection?

whole life

Warranty Statement

Absolutely true statement

Deferred

After a 1 year

Adhesion

" Take it or leave it "

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

$100k

Deferred Annuity

- Income payments begin after 1 year of purchase date

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained ?

3 days

A Straight Life policy has what type of premium?

A level annual premium for the life of the insured

In insurance, an offer is usually made when

An applicant submits an application to the insurer

In classifying a risk, the Home Office underwriting department will look at all of the following EXCEPT

Applicant's past income.

whole life policy

Basic while life policy Pay premium form the issue policy to death or 100 Lowest premium

The provision provide for an eany payment of the death when the insured

Becomes terminally ILL

Conditional Contract

Certain conditions must be met

All of the following are duties and responsibilities of producers at the time of application EXCEPT

Change any incorrect statement on the application by personally initialing next to the corrected statement.

What characteristic makes whole life permanent protection?

Coverage until death or age 100

Joint Life

Death benefit upon first death

Survivorship Life

Death benefit upon last deatch

What does "level" refer to in level term insurance ?

Face amount

Under a 20-pay whole life policyin 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

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.

An individual is purchasing a permanent life insurance policy with a face value of $25,000While this is the insurance that he can afford at this time, wants to be sure that additional coverage will be available the future. Which of the following options should be included in the policy?

Guaranteed insurability option

In which of the following cases will the insured be able to receive the full face amount from a whole life policy

If the insured lives to age 100

Physical hazard

Increase cause if loss

Annually renewable term policies provide a level death benefit for a premium that

Increases annually

What type of insurance would be used for a Return of Premium rider?

Increasing Term

Option B

Increasing death benefit option

An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habitsWhat type of a report is that?

Inspection report

The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse that the principal will be paid to their children when they reach a certain ageWhich settlement option should the policyowner choose

Interest only option

Option A

Is the level death benefit option

What is the purpose of a conditional receipt ?

It is intended to provide coverage on a date prior to the policy issue.

Which of the following best describes annually renewable term insurance?

It is level term insurance

When a reduced- paid up nonforfeiture option is chosen, what happens to the face amount of the policy

It is reduced to the amount of what the cash value would buy as a single premium

Which of the following is true of a children's rider added to an insured's permanent life insurance policy?

It is term coverage that is convertible to permanent insurance at or prior to the child reaching the maximum coverage age.

In the underwriting process, it was determined that the applicant for life insurance is in poor health and has some dangerous habits Which of the following is true concerning the policy premium?

It will likely be higher because the applicant is a substandard risk.

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

Joint Life Policy

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

Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the businessWhat type of insurance would be the most affordable and still provide a death benefit should one of them die?

Joint life

Twin brothers are starting a new businessThey know will take several years to the business to the point that they can pay off the debt incurred in starting the businessWhat type of Insurance would be the most affordable and still provide a death benefit should of them ?

Joint life

Annuities VS Life Insurance

Life Insurance -death -premium buys a death benefit Annuities-living -premium used to -accumulate money or -provide an income while living

Immediate Annuity

Lump sum premium within 1 year

Fraudulent Misrepresentation

Made with intent / cheating

Unilateral Contract

One side promise

Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?

Option B

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the

Other-insured rider

straight life

Pay until death or age 100

Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years?

Policy summary

Limited Payment

Premiums should be paid for specified number of years Insurance is effective until death

Return of Premium

ROP life insurance is an increasing term insure policy

Immediate Annuity is purchased with ?

Single premium

Which of the following policies would be classified as a traditional level premium contract?

Straight life

The president of a company is starting an annuity and decides that his corporation will be the annuitantWhich of the following statements is true?

The annuitant must be a natural person

Who bears all of the investment risk in a fixed annuity ?

The insurance company. Fixed annuities guarantee a minimum amount of interest to be credited to the purchase payment. Income payments do not vary from one payment to the next. The insurance company can afford to make guarantees because the money of a fixed annuity is placed in the general account of the insurance company, which is part of its investment portfolio. The company makes conservative enough investments to insure a guaranteed rate to the annuity owners.

An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?

The insured may renew the policy for another 10 years, but at a higher premium rate.

The insured had his wife named as the beneficiary of his life insurance policyTo ensure that his wife had income for life after the Insured's death, he chose the life income settlement optionThe amount of payments will be determined by taking into account of the following EXCEPt

The insureds age at death

Which of the following determines the cash value of a variable life policy?

The performance of the policy portfolio

Which of the following best describes what the annuity period is?

The period of time during which accumulated money is converted into income payments

Which of the following statements correct regarding a whole life policy?

The policy owner is entitled to policy loans

Which of the following statements is correct regarding a whole life policy ?

The policyowner is entitled to policy loans

Which of the following statements is correct regarding a whole life policy?

The policyowner is entitled to policy loans

Which is generally true regarding insureds who have been classified as preferred risks?

Their premiums are lower.

Which of the following types of policies allows for a flexible premium and a variable investment component?

Variable universal life insurance

Which of the following is a key distinction between variable whole life and variable universal life products?

Variable whole life has a guaranteed death benefit

When would a 20 -pay whole life policy endow?

When the insured reaches age 100

If an applicant for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about

Whether an insurable interest exists between the individuals

immediate

With in 1 year

Suitability

a requirement to determine if an insurance product is appropriate for a customer

Renewable provision

allows the policy owner the right to renew the coverage at the expiration date without evidence of insurability

an annuitant dies before annuitization occurswhat will the beneficiary receive?

an annuitant dies before annuitization occurswhat will the beneficiary receive?

The LEAST expensive first-year premium is found in which of the following policies?

annually renewable term

Personal Contract

between insurer and insured

Morale Hazard

carelessness

The type of policy that can be changed from one that does not accumulate cash value to the one that does is a

convertible term policy

The term "fixed" in a fixed annuity refers to all of the following EXCEPT

death benefit

What type of premium do both Universal Life and Variable Universal Life policies have ?

flexible

Concealment

hiding

A Return of Premium term life policy is written as what type of term coverage?

increasing

Pure Risk

loss only, no financial gain, insurable

Speculative Risk

loss or gain; insurers will not cover speculative risks

The premium of a survivorship life policy compared with that of a joint life policy would be

lower

Single Premium

one time lump sum payment

What is insurance?

protection against financial loss