EXAM

f a couple wants an annuity settlement option that will continue making payments for as long as either is alive, no matter which of them dies first, which of the following settlement options best suits their need?

joint and survivor life income

Bridget's life insurance policy provides $500,000 of coverage for a period of ten years, at which time the coverage terminates. Which type of policy does Bridget own?

level term

An insurable interest must exist at all times between the policyowner and the insured person or property for all the following types of insurance EXCEPT:

life insurance

Which of the following life insurance riders provides financial support for medical care, nursing home care, and assisted living care for extended periods?

long-term care rider

An underwriter's decision to decline an applicant or to apply a substandard rating is usually reviewed by another underwriter.

low-paying job

What is the main appeal of joint life insurance?

lower cost

For a misrepresentation to affect the validity of an insurance policy, it must be:

material

Which of the following distributes a sum of money regularly, starting very shortly after they are bought?

mmediate annuities

Placement, layering, and integration are steps in what kind of financial activity?

money laundering

Actuaries calculate net single premiums based on which of the following?

mortality and interest assumptions

Upon the lapse or surrender of a permanent life insurance policy, the cash value is available to the policyowner in the form of:

nonforfeiture options

The Privacy of Consumer Financial Information Regulation governs how insurers and their producers treat what type of information from individuals?

nonpublic personal financial information

What is the purpose of the Notice of Information Practices on an insurance application?

o inform the applicant about the practices that insurers use during the review and underwriting processes

May the personal representative of an insured individual take action when the beneficiary of a life insurance policy of that insured individual does not have an insurable interest?

only against any individual who received the benefits

At what point in a life insurance contract must insurable interest exist?

only when the policy is purchased

Al names his three sons as primary beneficiaries of his life insurance policy without specifying the percentage each should receive. If all three sons are alive when Al dies, the insurance company will:

pay an equal one-third share to each son

What type of annuity settlement option pays income for a specified number of years, regardless of how long the annuitant lives?

period certain-only option

If a life insurance policy is assignable, who has the right to assign all or part of the ownership rights?

policyowner alone

Kyle applies for an individual life insurance policy. He is in excellent health, does not engage in any risky habits or hobbies, works in a low-risk job and has no history of cancer or other health problems in his family. How would Kyle likely be classified for underwriting purposes?

preferred

Tim is 50 years old and just purchased an annuity into which he will pay monthly premiums until age 70, when he plans to annuitize the contract. The next 20 years are referred to as:

the accumulation period

If an insurer fails to pay a death claim within 60 days after receiving proof of death and does not have good cause for the delay, what must the insurer pay?

the amount of the death claim plus 8 percent interest per year

Which of the following parties to a deferred annuity contract is the person upon whose life the annuity payment amount and duration are based when the contract is annuitized?

the annuitant

What is the name of the period during which funds are paid out of an annuity contract in the form of periodic income payments?

the annuity payout period

Payment of a life insurance claim requires all of the following, EXCEPT:

the beneficiary's report of the cause of death

Who normally owns life insurance used to meet business insurance needs?

the business

Which of the following states that the applicant must provide both a signed application and payment of the first premium for the policy to become effective?

the consideration clause

If a person buys a new life insurance policy to replace an existing one, the producer must give the applicant the Notice Regarding Replacement form no later than when?

when the application is taken

Under a joint life insurance policy, when does the insurer pay the death benefit?

when the first insured dies

The Privacy of Consumer Financial Information Regulation requires an insurer to notify its current customers of its privacy policies or practices at least every

year

April is appointed by the Secure Insurance Company. Which of the following occurrences will NOT end her appointment?

She obtains a license to transact another line of authority.

Which statement is correct about insurance regulation?

State governments primarily regulate the insurance industry, and the federal government regulates some aspects of it.

All the following statements regarding the role of interest in life insurance premium calculations are correct EXCEPT

The higher the interest rate assumed by the actuary in calculating premiums, the higher the premium is likely to be.

All of the following statements about annuities are generally correct, EXCEPT:

The historic purpose of annuities is to create estates over a certain period.

Jim's insurance company offers him the option to pay the premium annually or semi-annually. If Jim chooses to pay half of the premium now and the other half six months from now, how will the insurer cover the additional cost of processing his payments?

The insurer charges a modestly higher premium.

Reggie has not paid his whole life insurance policy premium, and the policy is in the grace period. If he dies of a heart attack during this time, which of the following will occur?

The insurer will pay the death benefit after deducting the premium that is owed.

Bob was covered by a $50,000 group life insurance policy when he decided to retire. If he chooses to convert the policy to an individual policy, which of the following statements is correct?

The maximum amount of the new policy cannot be more than $50,000.

The typical guaranteed insurability rider lets policyowners buy a specified amount of additional insurance on select policy anniversaries until a specified maximum age. The anniversaries are usually at which interval?

3 year

How long is the free-look period when replacement is involved in an insurance transaction?

30 days

A life insurance policy cannot be backdated more than how many months before the original application was made?

6

All of the following statements regarding the use of deferred annuities in retirement planning are correct, EXCEPT:

Earnings grow on a tax-free basis only when a deferred annuity is used to fund a qualified retirement plan.

Bob bought a $100,000 ten-year level term insurance policy on March 1, 2008. What would happen if he died on March 15, 2018?

No death benefit would be payable.

Super Insurance Company often engages in settlement negotiations with claimants. In doing so, it is permitted to use which of these tactics to close a case?

Refuse to settle a claim until liability is certain.

Which of the following can be funded with a single premium payment, a series of fixed premium payments, or flexible premium payments?

deferred annuities

A financial product that lets consumers save money in a tax-deferred manner and may eventually be used to provide income that is guaranteed for life best describes a(n):

deferred annuity

Which standard provision in a life insurance policy forbids changes to any policy provision unless it is agreed to and signed by an officer of the insurance company?

entire contract provision

The Louisiana Insurance Commissioner cannot suspend or revoke an agent's license for which of the following reasons?

failing to meet projected sales goals

Fran has an annuity into which she is making monthly fixed premium deposits of a specified amount and which she intends to use to supplement her income when she retires in 15 years. The annuity is credited with the higher of a current or guaranteed rate of interest. What type of policy does Fran most likely own?

fixed premium deferred annuity

If an annuity requires only that each premium deposit be above a certain minimum, this is most likely which type of annuity?

flexible premium deferred annuity

Variable life insurance policies offer all of the following EXCEPT:

flexible premium payments

The Louisiana Insurance Commissioner serves a term of

four years

Variable annuity contract charges and fees are paid:

from premium payment and subaccount deductions

Dustin bought a life insurance policy three years ago. If he commits suicide, what, if anything, is the insurer obligated to pay to the beneficiary?

full death benefit

The guaranteed minimum income benefit (GMIB) rider of a variable annuity contract does which of the following?

guarantees a minimum life income regardless of the contract's accumulated value at the time of annuitization

Your client is interested in purchasing an annuity that will provide interest rates tied to a stock index, tax-deferred earnings, and a guarantee of principal. Which of the following annuities could you recommend to meet her investment objectives?

indexed deferred annuity

An insurer may pay accelerated benefits to a policyowner in which form?

installments or a lump sum

Tim applies for a life insurance policy. His agent gives him a receipt conditioned on Tim's passing a physical exam to meet underwriting standards. Tim passes the physical exam but dies before the policy is issued. Which of the following is correct?

The policy will pay the death benefit.

married couple is insured under a joint life policy. The first spouse dies. What can the surviving spouse do with the policy?

The surviving spouse may convert the policy without proving insurability.

How many days is the free-look period for life insurance policies issued in Louisiana?

10

Within how many days should the Louisiana Commissioner of Insurance be notified of a change of a producer's address?

10

What is the difference between a representation and a warranty in an insurance contract?

A representation is believed to be true, while a warranty is guaranteed to be true.

All the following statements about term life insurance are correct EXCEPT:

A small cash value gradually accumulates while the policy is in force

Which statement regarding two-tiered interest rate annuities is NOT correct?

A two-tiered fixed annuity has a guaranteed higher level of interest crediting than most traditional fixed annuities.

Which of the following producers is NOT engaging in controlled business?

Duane, whose commissions come from insurance written on his friends' businesses.

Which one of the following statements most correctly describes a universal life insurance feature that is NOT available with traditional whole life insurance?

Accessing the cash value must be done through a partial surrender, not a loan.

Acme Insurers recently started an advertising campaign in Louisiana for its new life insurance policies. Which of the following statements is TRUE? Acme cannot use testimonials in the advertisements. Acme cannot use paid endorsements in the advertisements. Acme cannot compare its products to competitors' products unless such comparisons are fair and complete. Acme's advertisements cannot mention other competitors or products.

Acme cannot compare its products to competitors' products unless such comparisons are fair and complete.

Which of the following statements regarding adjustable life insurance policy cash value withdrawals is correct?

Adjustable life insurance cash values are accessible either through a traditional policy loan or through a partial surrender.

With respect to the uninsurable (declined) underwriting risk classification, which of the following statements is correct?

An underwriter's decision to decline an applicant or to apply a substandard rating is usually reviewed by another underwriter.

Which of the following statements best describes the purposes that annuities serve?

Annuities accumulate and/or distribute sums of money.

Which of the following statements about agent/producer responsibilities is NOT correct?

As long as the applicant understands the life insurance product being recommended, it is not necessary for the agent to be concerned with the product's suitability for the applicant.

Which of the following may receive dividends on his life insurance policy?

David, who owns a participating whole life policy issued by ABC Mutual Insurance Company

With respect to a $75,000 ten-year level term policy, all the following statements are correct EXCEPT:

If the insured dies after ten years, only the policy's cash value will be paid to the beneficiary.

What is insurable interest?

Insurable interest is the relationship between the person applying for life insurance and the person whose life is to be insured. It is a necessary element in the issuing of a life insurance contract.

Which of the following best describes the meaning of insurable interest?

Insurable interest represents the financial impact on the policyowner by the loss of the insured person or property.

Funds collect within an annuity on a tax-deferred basis. What does this mean?

Interest earnings and growth are not taxable to the owner while they accumulate in the contract.

What happens to a signed life insurance application after the policy has been issued?

It becomes part of the contract between the insurer and the policyowner.

Which of the following statements best describes an annuity's accumulation period?

It can be a very long period-up to many years-or it can be as short as one month.

If Dale decides not to exercise his guaranteed insurability rider on an option date, what becomes of that option date?

It expires and cannot be used later.

Though based on similar actuarial principles, annuities are regarded as the exact opposite of life insurance. Which of the following explains the meaning of this statement?

Life insurance creates an estate, while annuities liquidate an estate.

Which of the following statements is true with ALL types of life insurance?

Life insurance policies are noncancellable by the insurer except for non-payment of premium.

Which of the following best illustrates the intended use of an annuity?

Maura purchases an annuity to convert a sum of money into a series of payments to herself.

All the following statements regarding about joint life insurance are correct, EXCEPT:

Only married couples may buy it.

which of the following statements about life insurance policy dividends is correct?

Policy dividends are considered a return of unearned premium

All of the following statements regarding life insurance or annuity replacement are correct EXCEPT:

Policy replacement is illegal.

Which of the following would not be considered controlled business?

Producer Allen received commissions on insurance written on family members that equaled 15 percent of his aggregate commissions during a 12-month period.

Lisa is 72 years old and is thinking about purchasing a fixed deferred annuity to hold the proceeds gained from the recent sale of her house. Which of the following would suggest that this product may not be well-suited for Lisa?

The annuity has a 10-year surrender charge period.

All the following statements regarding the designation of a life insurance policy beneficiary are correct EXCEPT:

The beneficiary must have an insurable interest in the insured person.

In an annuitant-driven deferred annuity contract, what happens upon the death of the annuitant prior to annuitization if the owner is still alive?

The contract terminates and the death benefit is paid to the beneficiary.

in an owner-driven deferred annuity contract, what happens upon the death of the contract owner prior to annuitization if the annuitant is still alive?

The contract terminates and the death benefit is paid to the beneficiary.

All the following statements about family term riders with life insurance are correct, EXCEPT:

The family term rider covers multiple family members (spouse plus children) with term insurance based on their ages.

The payor benefit rider for a juvenile insured sets the terms for when and how long the premium waiver stays in effect. If the payor becomes totally disabled or dies before the specified age, which of the following happens?

The waiver usually stays in effect until the payor recovers or the child reaches a certain age.

When do funds in a deferred annuity become the owner's?

They always belong to the contract owner.

All the following are generally accepted reasons for owning an annuity, EXCEPT:

They are useful to a person looking for income protection in case of premature death.

Which of the following statements about life insurance accelerated living benefits riders or provisions is correct?

They let the insured access a portion of the policy's face amount while still alive.

Why is it that endowment policies do not meet the IRS definition of life insurance?

They mature before age 120.

All the following statements about endowment contracts are correct EXCEPT: If the policy endows while the insured is still alive, the policyowner gets a specified sum as a living benefit. They are designed to build cash values quickly. They receive preferential income tax treatment. Policies endow well before age 120, usually at age 65.

They receive preferential income tax treatment.

Underwriters use their judgment to classify risk. In evaluating risk, insurers will also consider which of the following?

Underwriters use their judgment to classify risk. In evaluating risk, insurers will also consider which of the following?

In a universal life insurance policy, an insurer will make all of the following monthly adjustments EXCEPT:

deducting a surcharge from the cash value to cover the possibility that the insured has become uninsurable

Which of the following most correctly describes the underwriting process?

Which of the following most correctly describes the underwriting process?

Which of the following statements about cash value withdrawals from a universal life insurance (UL) policy is correct?

Withdrawals reduce the death benefit dollar-for-dollar.

While completing an application for a life insurance policy, Ken withholds information about his health history to avoid paying a higher premium. He has been in excellent health for the past five years. Has he committed fraud?

Yes, because he made a misstatement with the intent to deceive the insurance company.

If John buys a new life insurance policy or annuity that amends the coverage of his existing life insurance policy, the new policy will be considered which of the following?

a replacement policy

All of the following are standard life insurance policy nonforfeiture options EXCEPT:

accumulate at interest option

Under the integrated option of a long-term care rider, the beneficiary receives the remainder of the face amount as the death benefit at the insured's death. In this way, the long-term care integrated option is similar to which of the following?

an accelerated benefits rider

Which of the following would be most appropriate for Haley, 55, if her primary objective is to ensure having an income she cannot outlive?

an annuity

Which of the following individuals is the person upon whose life the annuity payment amount and duration are based when the contract is annuitized?

annuitant

At what point does a deferred annuity beneficiary receive any benefits under the contract?

at the death of the owner or annuitant before an

After Bob and Karen won the lottery, their state lottery board offered them a choice in how to receive their winnings. Instead of a lump sum, Bob and Karen chose to receive the funds in installment payments over a 10- to 20-year period. In this case, what is the state lottery board most likely to do?

buy a structured settlement annuity from an insurance company to pay a stream of income to the lottery winners over the specified period

Nonforfeiture options give a life insurance policyowner optional ways to receive the policy's:

cash value

An insurable risk is not:

catastrophic

Which of the following provisions is not required in a group life insurance policy?

change of occupation

The Privacy of Consumer Financial Information Regulation requirements concerning privacy notices generally apply when an insurer discloses nonpublic personal financial information to

collect and use nonpublic personal financial information

Susie was the intended recipient of death benefit proceeds from a life insurance policy insuring her husband, but she died a few months before him. Per the policy's beneficiary designation, the proceeds were paid to their son, Abe, who is considered the:

contingent beneficiary

For universal life insurance, an insurer credits interest to a policy's cash value based on which of the following?

current interest rates

Which of the following life insurance products is best suited for insuring a mortgage or other long-term loan with the least premium possible?

decreasing term life insurance

HIV test results may be released to an employee of a health-care facility if that employee

processes medical records for billing or reimbursement purposes.

Which is not a means of regulating the insurance business?

producer peer review

As distribution vehicles, annuities are useful for all the following reasons EXCEPT:

protect against the financial impact of dying too soon

Which of the following is NOT a standard category of life insurance?

qualified insurance

With an indexed annuity, the maximum interest rate that would be credited following a rate change is called a:

rate cap

Which of the following unfair practices is specifically prohibited as unethical?

rebating

Mr. Johnson buys an annuity when he turns 50 years old. An agent tells Johnson the account is set up so that the accumulated funds will be annuitized in 20 years, which means he will:

receive a series of income payments

The life insurance nonforfeiture option that results in the permanent continuation of cash value life insurance with no further premiums is called the:

reduced paid-up option

The life insurance applicant who meets the insurer's guidelines as an acceptable risk with no special premium rate treatment is considered a:

standard risk

For any given life policy death benefit amount, which of the following settlement options generally provides the largest monthly income to the payee?

straight life income settlement option

With a key person life insurance policy, who is the owner of the policy?

the employer

The assumed interest rate (AIR) of a variable annuity is which of the following?

the expected rate of return during the annuitization period

What does the entire contract clause in a life insurance policy refer to?

the fact that the policy and a copy of the application, if endorsed or attached to the policy, make up the entire contract

Who is the policyholder under a group credit life insurance policy?

the lender

Which of the following best describes income payments under the period certain payout option?

the longer the payout period, the smaller the amount of each monthly payment

Which of the following is not a potential consequence of replacing a life insurance policy?

the possibility of the new insurer cancelling the replacement policy after it is issued

If a policyowner lets an insurance policy lapse, within how many years may the policy be reinstated?

three years of the date on which it lapsed

The insurance company employee whose primary job is to review applications and determine if the requested policy is issued or declined is called a(n):

underwriter

In an attempt to increase her insurance sales, Jasmine encourages prospective insurance clients to buy a policy from her by offering to pay them a percentage of her commission from the sale. Jasmine practice is an

unethical rebate

Under the integrated long-term care rider option, what percentage of the base policy's face amount can be used for long-term care expenses?

up to 75 percent, depending on the insurer

A life insurance policy matures or endows when its guaranteed cash value equals its face amount. With an endowment contract, when does the policy endow?

well before age 120, usually at age 65

Within how many days from the date the insurer receives proof of death does interest begin to accrue on life insurance proceeds?

20 days

How many hours of continuing education courses must a producer complete every two years?

24

On April 1, Excel Insurance Company discovers that one of its producers is embezzling premiums collected for the company. Excel terminates the producer's appointment on April 15. When must it notify the Commissioner of the terminated appointment?

April 30

Which of the following statements regarding the tax treatment of endowment contracts is correct?

Endowment contracts no longer get the good tax treatment given to life insurance policies.

How often must the Louisiana Insurance Commissioner examine the books and records of an insurer doing business in Louisiana?

Every 5 years

Life and health insurance companies regulate themselves through each of the following entities or organizations EXCEPT:

Financial Industry Regulatory Authority

Which of the following correctly describes a lender's rights to require that a borrower buy credit life insurance when taking a loan?

In most states, lenders can encourage but cannot require borrowers to purchase credit life insurance of an amount not to exceed the value of the loan.

All the following statements about the paid-up dividend option with participating life insurance are correct, EXCEPT: The paid-up insurance option lets the policyowner use the dividends to pay up the life insurance policy early. A policyowner who chooses this option could pay up a whole life policy several years early, depending on the policy. After the policy is paid up, the policyowner does not owe any more premiums. The policy benefits will continue in force only until the policyholder reaches age 65.

The policy benefits will continue in force only until the policyholder reaches age 65.

What happens when a universal life insurance policy's cash value no longer covers the monthly deductions to cover the policy's insurance and operational costs?

The policy lapses.

Which one of the following statements about variable life insurance is correct?

Variable life insurance policyowners can transfer funds between subaccounts and the insurer's general account.

Lying, giving false reports, or overvaluing land, property, or securities during an examination by the Louisiana Department of Insurance is prohibited by federal laws on fraud and false statements because interstate insurance transactions are involved. What are the penalties for a violation?

a fine of up to $50,000 and/or imprisonment for up to ten years

Which of the following most indicates that a customer is not suited for a fixed annuity?

a need for current liquidity

The owner of a whole life policy who qualifies for accelerated benefits under the policy's accelerated benefits provision can expect to receive:

a percentage of (but less than) the policy's death benefit

Which of the following provisions allows part of a life insurance policy's death benefit to be paid while the policyowner is still living if he or she suffers from a terminal illness?

accelerated benefits provision

When completing an application for life insurance, Andrew states that he is 39 years old, though he is actually 45. When the insurer discovers this, it will probably

adjust the benefits.

An innocent misstatement of age or sex on an insurance application would most likely result in:

adjustment of policy benefits

A policyowner may reinstate a lapsed life insurance policy if

all past-due premiums plus interest are paid within three years.

Which of the following terms categorize insurers by their location or domicile?

domestic, foreign, and alien

Which of the following is not an unfair claims settlement practice if committed by an insurance company in Louisiana?

failing to promptly settle a claim for which liability is uncertain

What is the monetary penalty for paying an insurance commission to an unlicensed entity?

fine of $2,000 to $50,000

The Insurance Commissioner must examine the books and records of an insurer at least once every how often?

five years

In a back-end loaded universal life contract, when and from where does an insurer deduct administration fees?

from full or partial surrenders during the first 10 or so policy years.

Sue, an applicant who is a preferred risk, can expect to pay a premium that is best described as which of the following?

generally lower premiums than for standard risks

Elizabeth owns a universal life insurance policy with a $100,000 cash value for which she pays a $1,400 annual premium. If she loses her job and decides not to make a premium payment, which one of the following is most likely to occur assuming Elizabeth wishes to keep the policy in force?

he policy stays in force as long as the cash value will cover the monthly deductions and charges.

A fixed deferred annuity's death benefit is equal to which of the following?

he sum of all premiums paid into the policy plus its credited interest earnings, minus any withdrawals and contract charges

Under which one of the following circumstances does a fixed deferred annuity contract provide a death benefit?

if the contract owner or annuitant dies during the accumulation period

An annuity's accumulation period can be as short as a month or as long as many years. That statement describes which of the following?

immediate and deferred annuities

Which one of the following can be funded only with a single lump-sum premium payment, but it distributes income payments over time beginning soon after purchase?

immediate annuity

Patty is interested in buying a life insurance policy. Her agent asks if she has any existing policies. She does, and says that she would cancel her current policy if she bought the policy from the agent. What is the agent now obligated to do?

inform Patty of the consequences of replacing the policy

All of the following are prohibited insurer practices EXCEPT: accessing the MIB records on an applicant without the applicant's approval declining an application for life insurance based on genetic testing information obtained on the proposed insured. failing to notify a life insurance applicant that her application was declined because of information obtained in a credit report. investigating insurance applicants

investigating insurance applicants

Which of the following types of life insurance beneficiary designation can be changed only with the beneficiary's consent?

irrevocable beneficiary

Under which settlement option is an income paid until the second of the two annuitants dies, and at the second death, no further payments are made to anyone?

joint and survivor life income

Azure Insurance Company was incorporated in Delaware and has its headquarters in Louisiana. It has numerous agencies in Texas. Most of its revenue comes from business written on risks located in Mississippi. Where is Azure domiciled?

louisiana

Which of the following do variable life insurance premiums generally include to cover the cost of collecting and processing premiums?

maintenance fee

On April 1, Excelsior Insurance Company learns that one of its producers is moving to another country. Excelsior terminates the producer's appointment on April 15. When must Excelsior notify the Commissioner of the terminated appointment?

may 15th

The amount of the benefit paid under an indemnity policy can never be:

more than the loss or the policy's face amount, whichever is less

Which of the following is the underwriting method most widely used by insurance companies today?

numerical rating system

An agent assures an insurance applicant that she will be insured for a certain amount. If the coverage is denied and the applicant relied on the agent's assurance to her detriment, the insurer could be liable to the applicant on the basis of:

reasonable expectations

Genevieve wants to renew her Louisiana insurance producer's license. Which of the following is not a condition for renewal?

report of insurance sales made in the last two years

Emily postpones buying a life insurance policy, believing that her family will use its savings to pay her final expenses if she dies prematurely. Which method is she using to deal with risk?

retention

Robin falls while snow skiing and breaks a leg. She decides to never again attempt this activity. What method is she using to manage this risk of falling?

risk avoidance

The federal Risk Retention Act of 1986 applies to which businesses?

self-insuring businesses

After being injured in an automobile accident, Chris was awarded a sum of money by the court. The award was not made all at once; payments were made over several months. Which of the following best describes this arrangement?

structured settlement

A type of life insurance that covers two people and pays the death benefit only upon the second insured's death is called

survivorship life

Alan and his wife are expecting their first child. Alan wants the most death protection that he can get for the smallest amount of premium, at least while he's starting his family. Ideally, he would like to be able to upgrade his coverage to a whole life policy at some point. Which of the following products would you recommend?

ten-year convertible term life policy

Under most variable annuities, the death benefit equals the greater of premiums paid or:

the contract's accumulated value at the time of death

For what period of time may the Louisiana Insurance Commissioner grant a temporary insurance producer's license?

up to 180 days

The requirement that insurable interest must exist when a life insurance policy is purchased is intended to prevent people from:

using life insurance for wagering or betting purposes