Life Insurance - Basics
A STOLI policy
An investor buys a life policy on an elderly person in order to sell it for a life settlement. This is an example of
cash values can e borrowed at any time
What does "liquidity" refer to in a life insurance policy?
To explain features and benefits of a proposed policy to the consumer
What is the purpose of a disclosure statement in a life insurance policies?
Executive bonus
When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called an
The customer's associates, friends, and neighbors provide the report's data.
Comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?
Signed waiver of premium
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT
Need is predicted using the number of years until the insured's retirement
Which of the following is NOT true regarding the Needs Approach method of determining the value of an individual's life?
The cash value available to the policyowner
Which of the following is an example of liquidity in a life insurance contract?
The expense of a vacation for surviving family members
Which of the following would NOT fall into the category of costs associated with death?
Erase the incorrect answer and record the correct answer
If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT
With the policy
If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant
Another name for a substandard risk classification is
Rated
