Life Insurance Policy, Provisions, Riders, and Options
All of the following could own group life insurance EXCEPT
A group needing low-cost life insurance
what type of insurance would be used for a return of premium rider?
Increasing Term
Concerning Juvenile Life insurance, which of the following statements is INCORRECT?
Juvenile Life is classified as any life insurance purchased by a minor
An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?
Limited-pay life
The premium of a survivorship life policy compared with that of a joint life policy would be
Lower
The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for next premium. What option would allow her to do this?
Reduction of Premium
An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this?
Reinstatement provision
To sell variable life insurance policies, an agent must receive all of the following EXCEPT
SEC registration
Which of the following best defines target premium in a universal life policy?
The recommended amount to keep the policy in force throughout its lifetime
A universal Life insurance policy has two types of interest rates that are called
guaranteed & current
What is the waiting period on a Waiver of Premium rider in life insurance policies?
6 months Most insures impose a 6-month waiting period from the time of disability until the first premium is waived.
A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?
Automatic premium loan
Which of the following best describes fixed-period settlement option?
Both the principal and interest will be liquidated over a selected period of time.
Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner?
Cash surrender Once the cash is surrender value is paid, the contract is over.
What limits the amount that a policyowner may borrow from a whole life insurance policy?
Cash value
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
Which component increases in the increasing term insurance?
Death benefit
The death benefit in a variable universal life policy
Depends on the performance of a seperate account
Which nonforfeiture option has the highest amount of insurance protection?
Extended Term
Which policy component decreases in decreasing term insurance?
Face amount
A Return of Premium term life policy is written as what type of term coverage?
Increasing
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
An insured purchased a life policy in 2010 and died in 2020. The insurance company discovers at the time that the insured had misstated information about her insurance history on the application. What will the insurer do?
Pay the death benefit
All of the following are characteristics of group life insurance EXCEPT
Premiums are determined by the age, sex and occupation of each individual certificate holder
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
Single premium whole life
Which of the following is called a "second-to-die" policy?
Survivorship life
When life insurance policy was issued, the policyowner designated a primary and a contingent beneficiary. Several years later, both the insured and the primary beneficiary died in the same car accident, and it was impossible to determine who died first. Which of the following would receive the death benefit?
The insured's contingent beneficiary's estate
All of the following are true regarding the guaranteed insurability rider EXCEPT
This rider is available to all insureds with no additional premium
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?
Those who have been insured under the plan for at least 5 years
Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?
Universal Life - Option A
A rider attached to a life insurance policy that provides coverage on the insured's family members is called the
other-insured rider
All of the following are beneficiary designations EXCEPT
specified
An absolute assignment is a
transfer of all ownership rights in a policy