Live Insurance Policies
the insured is also the policyowner of a whole life policy. What age must the insured attain in order to receive the policy's face amount?
100
A domestic insurer has just decided to change the investment policy of a separate account. After this change is filed with the Director, how soon will it become effective?
60 days
An individual was insured under a group contract. He was just fired from his job, and, subsequently, his coverage was terminated. How long does his insurer have to notify him of his rights to convert that group policy into an individual policy?
60 days beyond the policy's next expiration date
All of the following could own group life insurance EXCEPT
A group needing low-cost life insurance.
For variable products, underlying assests must be kept in
A separate account.
All of the following statements are correct regarding credit life insurance EXCEPT
Benefits are paid to the borrower's beneficiary.
Which of the following would be the beneficiary in credit life insurance?
Creditor
Which of the following is TRUE about credit life insurance?
Creditor is the policyowner.
An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?
Decreasing term
Which of the following types of insurance policies is most commonly used in credit life insurance?
Decreasing term
In group life policies, individual certificates are given to
Each insured person.
What does "level" refer to in level term insurance?
Face amount
Which policy component decreases in decreasing term insurance?
Face amount
The death benefit under the Universal Life Option B
Gradually increases each year by the amount that the cash value increases.
Which of the following best describes annually renewable term insurance?
It is level term insurance.
Which statement is NOT true regarding a Straight Life policy?
Its premium steadily decreases over time, in response to its growing cash value.
Which of the following is called a "second-to-die" policy?
Survivorship life
All of the following entities regulate variable life policies EXCEPT
The Guaranty Association
The initial amount of credit life insurance may NOT exceed
The amount to be repaid under the contract.
Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?
Universal life
Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?
Universal life
Which of the following types of policies allows for a flexible premium and a variable investment component?
Variable universal life insurance
Which of the following is a key distinction between variable whole life and variable universal life products?
Variable whole life has a guaranteed death benefit.
When would a 20-pay whole life policy endow?
When the insured reaches age 100
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
Attained age.
What type of premium do both Universal Life policies have?
Flexible
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.
Concerning Juvenile Life insurance, which of the following statements is INCORRECT?
Juvenile Life is classified as any life insurance purchased by a minor.
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?
Limited pay whole life
Which Universal Life option has a gradually increasing cash value and a level death benefit?
Option A
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 insured owns a term policy with a guaranteed renewable option. When the end of the policy draws near, the insured answers medical questions in order to prove insurability and qualifies for a discounted premium rate. Which option best describes this scenario?
Re-entry
To sell variable life insurance policies, an agent must receive all of the following EXCEPT
SEC registration
In a group life insurance policy, the employer may select all of the following EXCEPT
The beneficiary.
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
The death benefit can be increased by providing evidence of insurability.
Which of the following are generally NOT considered when underwriting group insurance?
The insureds' medical history
Which of the following statements is correct regarding a whole life policy?
The policyowner is entitled to policy loans.
A Straight Life policy has what type of premium?
A level annual premium for the life of the insured
If a life insurance policy increases significantly in face amount (death benefit) when the insured reaches a specified age, what type of policy is this?
Jumping juvenile policy
Variable Whole Life insurance is based on what type of premium?
Level fixed
Which of the following is an example of a limited-pay life policy?
Life Paid-up at Age 65
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
Which of the following statements about group life is correct?
The cost of coverage is based on the ratio on the ratio of men and women in the group.
Which of the following is TRUE regarding the insurance amount in a credit life policy?
The creditor can only insure the debtor for the amount owed.
The LEAST expensive first-year premium is found in which of the following policies?
Annually Renewable Term
The death protection component of Universal Life Insurance is always
Annually Renewable Term
