Life Insurance Policies-Exam FX 8 Questions

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

Interest-sensitive Whole Life.

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

Adjustable Life

At age 30, an applicant wants to start an insurance program, but realizing that his insurance needs will likely change, he wants a policy that can be modified to accommodate those changes as they occur. Which of the following policies would most likely fit his needs?

30 days

If an insurer cancels a universal life insurance policy due to the nonpayment of required premiums, how much prior notice must be given to the policyowner?

Required a premium increase each renewal.

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy

The Guaranty Association.

All of the following entities regulate variable life policies EXCEPT

The coverage period

An Adjustable Life policyowner can change which of the following policy features?

Attained Age

An employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his

Increases annually.

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

Annually Renewable Term

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

Gradually increases each year by the amount that the cash value increases

The death benefit under the Universal Life Option B

The death benefit can be increased by providing evidence of insurability.

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

Modified life

What type of whole life insurance policy has premiums that are adjusted so that during the first years of the policy, the premiums are lower than those of a straight whole life policy, and in subsequent years the premiums are higher than those of a straight whole life policy?

Option A

Which Universal Life option has a gradually increasing cash value and a level death benefit?

It is level term insurance.

Which of the following best describes annually renewable term insurance?

Those who have been insured under the plan for at least 5 years

Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?

Life Paid-up at Age 65

Which of the following is an example of a limited-pay life policy?

It will increase because the insured will be 5 years older than when the policy was originally purchased.

An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertibility options. When the insured renews the policy in 5 years, what will happen to the premium?

Be level thereafter.

Graded-Premium Whole Life policy premiums are typically lower initially, but gradually increase for a period of 5 to 10 years. After the period of increase the premiums will

Require evidence of insurability.

If an employee wants to enter the group outside of the open enrollment period, to reduce adverse selection, the insurer may

Universal Life - Option A

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?

The cost of coverage is based on the ratio of men and women in the group.

Which of the following statements about group life is correct?

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

Which statement is NOT true regarding a Straight Life policy?

Limited pay whole life

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?