Chapter 2

Which of the following documents delivered to the policy owner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years ?

A policy summary

Partners Ima business enter a buy-sell agreement to purchase life insurance, which states that should be one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to find this agreement ?

Any form of life insurance .

What is the time period called during which the surviving spouse of the insured does not receive social security income benefits ?

Blackout Period

A key person insurance policy can pay for which of the following ?

Cost of training and replacement

All of the following are personal uses of life insurance EXCEPT

Estate liquidation

Who makes up the medical information bureau?

Insurers

The mode of premium payment

Is defined as the frequency and the amount of the premium payment.

Which of the following would be the best option that would help the surviving spouse of the insured to put her child through daycare after the insurers death?

Life insurance proceeds

Which of the following premium modes would result in the highest annual cost for an insurance policy ?

Monthly

Attempting to determine how much insurance an individual would require based upon their financial objectives is known as

Needs approach

Bobby has manes his wife, Darby, as the personal representative of his estate. Darby is also the beneficiary of Bobbys life insurance policy. How will the claim for the insurance be handled ?

The beneficiary files the claim by submitting proof of loss to the insurance company and the insurance company is to pay the claim within 30 days.

Which of the following statements is true concerning the creditors of the deceased insured

The creditors have rights to the proceeds if they can show evidence of valid assignment .

All of the following are true of Key Person insurance EXCEPT

The plan is funded by permanent insurance only.

Which of the following types of insurance policies would perform the function of cash accumulation

Whole life

Which of the following would describe a legal document which would dictate who can buy a deceased partners share of a business and for what amount?

Buy-sell agreement