life insurance basics quiz
which of the following terms means a result of calculating based don the average number of months the insured is projected to live due to medical history and mortality factors
life expectancy
which of the following terms means a result of calculations based on the average number of months the insured is projected to live due to medical history and mortality factors
life expectancy
which of the following best describes gross annual premium
net premium plus expenses
an insured purchased an individual life insurance policy with the face amount of 15k he pays premium each month
ordinary life
which of the following is usually true of participating life insurance policy
pays dividends to policyowners
an applicant wants to buy a policy that has cash value element which type should she buy
permanent
if someone wants to buy a life insurance policy that will provide lifetime protection against premature death what type of life insurance policy should that person buy
permanent
which of the following individuals must have insurable interests in the insured
policyowner
based on human life value approach which of the following is not used to calculate an individual life value
predicts needs of the family after the insureds death
all of the following are characteristics of group life insurance except
premiums are determined by age sex and occupation
which of the following is an example of liquidity in a life insurance contract
the cash value available to the policyowner
in a life settlement contract whom does the life settlement broker represent
the owner
how must a replacing producer respond to an applicant wishing to replace existing life insurance
the producer must provide the applicant with a notice regarding replacement
which of the following is not true of life settlement
the seller must be terminally ill
which of the following is the best reason to purchase life insurance rather than aannuities
to create an estate
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
what is the purpose of key person insurance
to lessen the risk of financial loss because of the death of a key employee
which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds
vacation travel expenses
an insured receives a monthly summary for his life insurance policy he notices that the cash value of the policy is significantly lower this month than last month
variable
an agent and an applicant for a life insurance policy fill out and sign the application however the applicant does not wish to give the agent the intitial premium and no conditional receipt is issued when will coverage begin
when the agent delivers the policy collects the initial premium and the applicant completes an acceptable statement of good health
if an applicant for a life insurance policyand 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
an investor buys a life policy on an elderly person in order to sell it for a life settlement this is an example of
a STOLI
full premium was submitted with the application and the policy was issued two weeks later as requested. when does coverage begin
as of the application date
which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision making process
buyers guide
if an insurance changes his payment plan from monthly to annuallywhat happens to the total premium
decreases
an insured has a life insurance policy with the face amount of $500 he pays a premium each weekto the agent who sold him the policy. what kind of policy does the insured have
industrial life
who makes up the medical information bureau
insurers
