Life Insurance Policies - Practice Questions
What is the most common name for a single policy that is designed to insure two or more lives with standard premium, and that pays the death benefit upon the first death? a. Survivorship life b. Joint life c. Second-to-Die d. Last Survivor
b
Which of the following features makes whole life insurance permanent protection? a. Guaranteed death benefit b. Coverage until death or age 100 c. Living benefits d. Guaranteed level premium
b
A Straight Life policy has what type of premium? a. An increasing annual premium for the life of the insured. b. A decreasing annual premium for the life of the insured. c. A variable annual premium for the life of the insured. d. A level annual premium for the life of the insured.
c
Which of the following is TRUE regarding premium in a 10-year level premium policy? a. The premium will remain level for 10 years .b The premium will remain the same at renewal c. The premium will decrease at the end of the term d. The premium will be level for the first few years of the policy, but will increase by the 10th year
c
Which of the following is an example of a limited-pay life policy? a. Level Term Life b. Straight Life c. Life Paid-up at Age 65 d. Renewable Term to Age 70
c
Which of the following is true about credit life insurance? a. Debtor is the policy beneficiary. b. Creditor is the policyowner. c. Debtor is the annuitant. d. Creditor is the insured.
d
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? a. Nothing b. $50,000 c. $100,000 d. $200,000
a
When comparing a Joint Life policy to two individual life policies of the same amount on the same insureds, which condition is true? a. Joint Life has a higher premium than the total of the two individual policies. b. Joint Life has a lower premium than the total of the two individual policies. c. Joint Life has a premium that is identical to the sum of the two individual policies. d. The Joint Life premium can only be paid monthly.
a
To sell variable life insurance policies, an agent must receive all of the following EXCEPT a. FINRA registration b. SEC registration c. A life insurance license d. A securities license
b
Which Universal Life option has a gradually increasing cash value and a level death benefit? a. Option A b. Option B c. Annually renewable term d. Adjustable life
b
An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen? a. The insurer will pay nothing because the employee has terminated his group insurance and hasn't started the individual one. b. The insurer will pay the full death benefit from the group policy to the beneficiary c. The insurer will pay a reduced death benefit to the beneficiary d. The insurer will pay the death benefit minus one month's premium
d
If an employee wants to enter the group outside of the open enrollment period, to reduce adverse selection, the insurer may ___ a. Require a higher premium b. Extend the open enrollment period c. Increase medical requirements on existing members d. Require evidence of insurability
d
Term policies are available as Level, Increasing, and Decreasing. Which policy component fluctuates depending on the policy type? a. Premium b. Death benefit c. Cash value d. Nonforfeiture values
d
The death protection component of Universal Life Insurance is always___ a. Adjustable Life b. Increasing Term c. Annually Renewable Term d. Whole Life
d
Which of the following best describes annually renewable term insurance? a. Neither the premium nor the death benefit is affected by the insured's age b. It provides annually increasing death benefit c. It is a level term insurance d. It requires proof of insurability at each renewal
d
