Life insurance policies
In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?
5
The death protection component of Universal Life Insurance is always
Annually Renewable Term
An employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his
Attained age.
All of the following statements are correct regarding credit life insurance EXCEPT
Benefits are paid to the borrower's beneficiary.
insurance is a special type of coverage written to insure the life of the debtor and pay off the balance of a loan in the event of the death of the debtor.
Credit Life
Which of the following is TRUE about credit life insurance?
Creditor is the policyowner.
Which of the following types of insurance policies is most commonly used in credit life insurance?
Decreasing term
Which of the following is correct regarding credit life insurance?
It insures the life of a debtor.
Which statement is NOT true regarding a Straight Life policy?
Its premium steadily decreases over time, in response to its growing cash value.
If a life insurance policy increases significantly in face amount (death benefit) when the insured reaches a specified age, what type of policy is this?
Jumping juvenile policy
The premium of a survivorship life policy compared with that of a joint life policy would be
Lower.
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
If an employee wants to enter the group outside of the open enrollment period, to reduce adverse selection, the insurer may
Require evidence of insurability.
Which of the following would help prevent a universal life policy from lapsing?
Target premium
In a group life insurance policy, the employer may select all of following EXCEPT
The beneficiary.
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
The death benefit can be increased by providing evidence of insurability
What is the purpose of establishing the target premium for a universal life policy?
To keep the policy in force
Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?
Universal Life - Option A
When would a 20-pay whole life policy endow?
When the insured reaches age 100
