Ch 2 Quiz
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?
$100,000
A domestic insurer issuing variable contracts must establish one or more
Separate accounts
When would a 20-pay whole life policy endow?
When the insured reaches age 100
What is called a "second-to-die" policy?
Survivorship life
In a survivorship life policy, when does the insurer pay the death benefit?
Upon the LAST death
If the owner of a whole life policy who is also the insured dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary?
A full death benefit
A Straight Life policy has what type of premium?
A level annual premium for the life of the insured
To sell varibale life insurance policies, an agent must receive...
A securities license, life insurance license, and FINRA registration
The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true?
The annuitant must be a natural person
Which policies would be classified as a traditional level premium contract?
Straight Life. Straight WHOLE Life policies have a level guaranteed face amount and a level premium for the life of the insured
The type of policy that can be changed from one that does not accumulate cash value to the on that does is a...
Convertible Term Policy
The following entities regulate variable life policies...
Federal gov, The SEC, The Insurance Department
Variable Whole Life insurance is based on what type of premium?
Level Fixed
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
An insured purchased a variable life insurance policy with a face amount of $50,000. Over the life of the policy, stock performance declined and the cash value fell to $10,000. If the insured dies, how much will be paid out?
$50,000
To sell variable life insurance policies, and agent must receive all of the following
A securities license, life insurance, and FINRA registration
For variable products, underlying assets must be kept in...
A separate account
The minimum interest rate on an equity indexed annuity is often based on...
An index like Standard & Poor's 500
Which policy component decreases in decreasing term insurance?
Face amount
In which of the following cases will the insured be able to recieve the full face amount from a whole life policy?
If the insured lives to age 100
A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?
Level Term. (A 20-year term policy is written to provide a level death benefit for 20 years.)
Which describes what the annuity period is?
The period of time during which accumulated money is converted into income payments