Life Insurance Basics
If an insured changes his payment plan from monthly to annually, what happens to the total premium?
It will decrease
Another name for a substandard risk
Rated
All of the following are requirements for life insurance illustrations except
They must be part of the contract.
All of the following information about the applicant is identified in the general information section of a life insurance application except
Education
Upon policy delivery, the producer may be required to obtain any of the following except
Signed waiver of premium
Which of the following statements is not true concerning insurable interest as it applies to life insurance?
A debtor has an insurable interest in the life of a lender NOT TRUE
What does "liquidity" refer to in a life insurance policy?
Cash values can be borrowed at any time.
If an applicant for a life insurance policy is found to be a substandard risk the insurance company is most likely to
Charge an higher premium
What kind of policies issues certificates of insurance to the insureds
Group insurance
Which of the following entities protects policyowners, insureds, and beneficiaries under insurance contracts when insurers fail to perform contractual obligations due to financial impairment?
Insurance Guaranty Association
Which of the following statements regarding HIV testing for life insurance purposes is NOT true?
Insurers are barred from requesting HIV testing.
When a applicant purchased a life insurance policy the agent dated the application 4 months prior . The agent is allowed to backdated policies up to 6 months if it would
Lower the insureds premium
Person A has an insurable interest in Person B and wants to insure B's life. A will be the policy beneficiary. Which of the following is true?
Person B must consent to be insured in writing
If an agent fails to obtain an applicants signature on the insurance application, the agent must?
Return the application to the applicant for signature
All of the following are personal uses of life insurance except
buy-sell agreement
Which of the following would be the best option that would help the surviving spouse of the insured to put her child through daycare after the insureds death
life insurance proceeds
Which of the following is true regarding buy-sell agreements
Buy-sell agreements are normally funded with a life insurance policy
All of the following are factors that an underwriter could use to select and classify risk except
National origin
During replacement of life insurance, a replacing insurer must do which of the following?
Obtain a list of all life insurance policies that will be replaced