Life insurance 🤎
Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income?
Depreciation period
Moral Hazard
Dishonest client
Material Fact
Effects underwriting decision
An annuity owner is funding an annuity that will supplement her retirementBecause she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 IndexShe would likely purchase a
Equity indexes annuity
What is the purpose of the buyer's guide?
To allow the consumer to compare the costs of different policies
Why should the producer personally deliver the policy when the first premium has already been paid?
To help the insured understand all aspects of the contract
Convertible Provision
provides the policy owner with the right to convert the policy to a permanent insurance policy without evidence of insurability
An insured committed suicide one year after his life insurance policy was issued. The insurer will
refund the premiums paid
A domestic insurer issuing variable contracts must establish one or more
separate accounts
The interest earned on policy dividends is
taxable
Which of the following is TRUE regarding the premium in term policies ?
the premium is level
Representations
the truth to the best of your knowledge and belief
During partial withdrawal from a universal life policy, which portion will be taxed?
to interest
aleatory
unequal exchange
Which of the following types of policies will provide permanent protection?
whole life
Warranty Statement
Absolutely true statement
Deferred
After a 1 year
Adhesion
" Take it or leave it "
An Individual purchased a $100,000 Joint Life policy on himself and his wife. Eight years later, he died in an automobile accidentHow much will his wife receive from the policy?
$100k
Deferred Annuity
- Income payments begin after 1 year of purchase date
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained ?
3 days
A Straight Life policy has what type of premium?
A level annual premium for the life of the insured
In insurance, an offer is usually made when
An applicant submits an application to the insurer
In classifying a risk, the Home Office underwriting department will look at all of the following EXCEPT
Applicant's past income.
whole life policy
Basic while life policy Pay premium form the issue policy to death or 100 Lowest premium
The provision provide for an eany payment of the death when the insured
Becomes terminally ILL
Conditional Contract
Certain conditions must be met
All of the following are duties and responsibilities of producers at the time of application EXCEPT
Change any incorrect statement on the application by personally initialing next to the corrected statement.
What characteristic makes whole life permanent protection?
Coverage until death or age 100
Joint Life
Death benefit upon first death
Survivorship Life
Death benefit upon last deatch
What does "level" refer to in level term insurance ?
Face amount
Under a 20-pay whole life policyin order for the policy to pay the death benefit to a beneficiary , the premiums must be paid
For 20 years or until death whichever occurs first
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid
For 20 years or until death, whichever occurs first.
An individual is purchasing a permanent life insurance policy with a face value of $25,000While this is the insurance that he can afford at this time, wants to be sure that additional coverage will be available the future. Which of the following options should be included in the policy?
Guaranteed insurability option
In which of the following cases will the insured be able to receive the full face amount from a whole life policy
If the insured lives to age 100
Physical hazard
Increase cause if loss
Annually renewable term policies provide a level death benefit for a premium that
Increases annually
What type of insurance would be used for a Return of Premium rider?
Increasing Term
Option B
Increasing death benefit option
An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habitsWhat type of a report is that?
Inspection report
The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse that the principal will be paid to their children when they reach a certain ageWhich settlement option should the policyowner choose
Interest only option
Option A
Is the level death benefit option
What is the purpose of a conditional receipt ?
It is intended to provide coverage on a date prior to the policy issue.
Which of the following best describes annually renewable term insurance?
It is level term insurance
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 is true of a children's rider added to an insured's permanent life insurance policy?
It is term coverage that is convertible to permanent insurance at or prior to the child reaching the maximum coverage age.
In the underwriting process, it was determined that the applicant for life insurance is in poor health and has some dangerous habits Which of the following is true concerning the policy premium?
It will likely be higher because the applicant is a substandard risk.
A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the Insured. Which policy is that?
Joint Life Policy
A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first Insured. Which policy is that?
Joint Life Policy
Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the businessWhat type of insurance would be the most affordable and still provide a death benefit should one of them die?
Joint life
Twin brothers are starting a new businessThey know will take several years to the business to the point that they can pay off the debt incurred in starting the businessWhat type of Insurance would be the most affordable and still provide a death benefit should of them ?
Joint life
Annuities VS Life Insurance
Life Insurance -death -premium buys a death benefit Annuities-living -premium used to -accumulate money or -provide an income while living
Immediate Annuity
Lump sum premium within 1 year
Fraudulent Misrepresentation
Made with intent / cheating
Unilateral Contract
One side promise
Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
Option B
A rider attached to a life insurance policy that provides coverage on the insured's family members is called the
Other-insured rider
straight life
Pay until death or age 100
Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years?
Policy summary
Limited Payment
Premiums should be paid for specified number of years Insurance is effective until death
Return of Premium
ROP life insurance is an increasing term insure policy
Immediate Annuity is purchased with ?
Single premium
Which of the following policies would be classified as a traditional level premium contract?
Straight life
The president of a company is starting an annuity and decides that his corporation will be the annuitantWhich of the following statements is true?
The annuitant must be a natural person
Who bears all of the investment risk in a fixed annuity ?
The insurance company. Fixed annuities guarantee a minimum amount of interest to be credited to the purchase payment. Income payments do not vary from one payment to the next. The insurance company can afford to make guarantees because the money of a fixed annuity is placed in the general account of the insurance company, which is part of its investment portfolio. The company makes conservative enough investments to insure a guaranteed rate to the annuity owners.
An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?
The insured may renew the policy for another 10 years, but at a higher premium rate.
The insured had his wife named as the beneficiary of his life insurance policyTo ensure that his wife had income for life after the Insured's death, he chose the life income settlement optionThe amount of payments will be determined by taking into account of the following EXCEPt
The insureds age at death
Which of the following determines the cash value of a variable life policy?
The performance of the policy portfolio
Which of the following best describes what the annuity period is?
The period of time during which accumulated money is converted into income payments
Which of the following statements correct regarding a whole life policy?
The policy owner is entitled to policy loans
Which of the following statements is correct regarding a whole life policy ?
The policyowner is entitled to policy loans
Which of the following statements is correct regarding a whole life policy?
The policyowner is entitled to policy loans
Which is generally true regarding insureds who have been classified as preferred risks?
Their premiums are lower.
Which of the following types of policies allows for a flexible premium and a variable investment component?
Variable universal life insurance
Which of the following is a key distinction between variable whole life and variable universal life products?
Variable whole life has a guaranteed death benefit
When would a 20 -pay whole life policy endow?
When the insured reaches age 100
If an applicant for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about
Whether an insurable interest exists between the individuals
immediate
With in 1 year
Suitability
a requirement to determine if an insurance product is appropriate for a customer
Renewable provision
allows the policy owner the right to renew the coverage at the expiration date without evidence of insurability
an annuitant dies before annuitization occurswhat will the beneficiary receive?
an annuitant dies before annuitization occurswhat will the beneficiary receive?
The LEAST expensive first-year premium is found in which of the following policies?
annually renewable term
Personal Contract
between insurer and insured
Morale Hazard
carelessness
The type of policy that can be changed from one that does not accumulate cash value to the one that does is a
convertible term policy
The term "fixed" in a fixed annuity refers to all of the following EXCEPT
death benefit
What type of premium do both Universal Life and Variable Universal Life policies have ?
flexible
Concealment
hiding
A Return of Premium term life policy is written as what type of term coverage?
increasing
Pure Risk
loss only, no financial gain, insurable
Speculative Risk
loss or gain; insurers will not cover speculative risks
The premium of a survivorship life policy compared with that of a joint life policy would be
lower
Single Premium
one time lump sum payment
What is insurance?
protection against financial loss