Life insurance

Under an extended term nonforfeiture option, the policy cash value is converted to

The same face amount as in the whole life policy

Twisting

To persuade an insured to cancel, lapse, switch policies or take out a policy with another insured. This is prohibited

What is the maximum face amount on an industrial life policy?

1,000

Which nonforfeiture option has the highest amount of insurance protection?

Extended Term

Both Universal Life and Variable Life have a

Flexible Premium

Which two terms are associated directly with the premium?

Level or Flexible

Conservation

Means any attempt by an existing insurer or its producer, or by broker to dissuade a current policyowner from the replacement of existing life insurance.

Who is a person, other than a viator, that enters into a vertical settlement contract?

Provider

What life insurance policy would be considered interest sensitive

Universal Life

Which nonforfeiture option provides coverage for the longest period of time?

Reduced paid up

When a reduced paid up nonforfeiture option is chosen, what happens to the face amount of the policy?

It is reduced to the amount of what the cash value would buy as a single premium

Which of the following best describes fixed period settlement option?

Both the principle and interest will be liquidated over a selected period of time

Rebating

Any inducement offered in the sale of insurance products that is not specified in the policy.

What policy would be classified as a traditional level Premium contract

Straight Life