Life insurance practice exam

What does the payor benefit rider protect?

premium payments for a juvenile policy

Which of the following allows an insurance company to deny coverage if the insureds death occurs during war?

Policy exclusions

An annuity is considered fixed when it does all of the following EXCEPT

Prodives the annuitant with an interest rate that is the lesser of the guaranteed or current rate

Betty is the only beneficiary named on her husband Bob's policy which has a Common Disaster provision. They are in a car wreck, and Bob dies instantly. Betty lives for 29 days. Who will receive the death benefit?

Bobs estate

Which of the following is not a non-forfeiture option in whole life policies?

Accumalation at interest

The "pay-in" phase of an annuity is known as what period?

Accumulation period

An annuity in which investment growth is dependent on the performance of an index such as the Standard and Poor's 500 is called a(n)

Equity Indexed Annuity

An insurance agent represents the

Insurer

Which type of annuity settlement stops when the annuitant dies

Life income annuity

What type of permenant insurance allows the policyowner to pay for a policy in a specified period of time, and the policy owner does not have to make any premium payments for the life of the policy?

Limited payment

Conditional Receipt

The producer issues a conditional receipt to the applicant when the application and premium are collected. There are two types of conditional receipts: insurability and approval.

An insurer mails an insurance policy to a new policyowner. When the insurer relinquishes control of the policy, the policy is considered

delivered

Two business partners own life insurance on each other. If one partner dies, which of the following contracts will allow the surviving partner to use the death benefit to purchase the deceased's business interest?

Buy-sell agreement

To prevent people from profiting from loss, insurers must be certain

Insurable interest exists

Which of the following retirement plans is a special tax favored plan for non- profit ,charitable, educational or religious groups?

403(b) tax sheltered annuity (TSAs)

What is the purpose of the grace period in the life insure policies?

To protect the policyowner against an unintentional lapse of the policy

Each of the following is a typical characteristic of group life insurance EXCEPT

Evidence of insurability is usually required

At age 25, an individual purchased a decreasing term policy. What happens to the coverage and the premiums as the insured gets older?

The coverage decreases and the premium stays the same