NW Mutual Q3 - Life insurance policies

Which policy component decreases in decreasing term insurance?

Face amount

An employee has group life insurance through her employer. After 5 years, she decides to leave the company and work independently. How can she obtain an individual policy?

She can convert her group life policy to an individual life policy without proof of insurability within 31 days of leaving the group plan

In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT the premium the amount of insurance the type of insurance the length of coverage

the type of investment

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

An adjustable life policyowner can change which of the following policy features? the coverage period the mortality expense the investment account the insured

the coverage period

Which of the following is not true regarding a Variable Universal Life policy?

the death benefit is fixed

The insured is also the policy owner of a whole life policy. What age must the insured attain in order to receive the policy's face amount?

100

A straight life policy has what type of premium?

A level annual premium for the life of the insured

A Universal Life Insurance policy is best described as a/an

annually renewable term policy with a cash value account

How are the variable annuities regulated?

by state and federal agencies

What are two components of a universal policy?

insurance and cash account

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?

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

What are the licensing requirements for someone who sells variable universal life insurance?

life insurance and securities

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

require evidence of insurability

A domestic insurer issuing variable contracts must establish one or more

separate accounts