Life insurance test

Reserved for people With a Superior physical condition, habits, lifestyle

Preferred risk classification

Types of risks that will result in the highest premium

Substandard risk

Example of liquidity in a life insurance contract

The cash value available to the policy owner

Who must approve viatical settlements

The director

All advertisements are the responsibility of who

The insurer

Which of the following is not a characteristic of variable annuities

They offer guaranteed stock performance

Who effectuates viatical settlement contracts?

Viatical settlement providers

When is the earliest a policy may go into effect?

When the application is signed and a check is given to the agent

An underwriter is reviewing the medical questions in the application and needs further information due to a medical situation from the past. What will the underwriter require?

Attending physician statement

Who makes up the medical information bureau

Insurers

Poor health and bad habits in life insurance lead to

Higher premium because of a substandard risk

When calculating the amount of life insurance it takes into account the insureds wages, years until retirement, and inflation

Human life value approach

Who is the owner and the beneficiary on a key person life insurance policy

the employer is the owner and beneficiary

Cost comparison methods

used to compare the cost of one life insurance policy against another

A person who qualifies for preferred risk classification qualifies for

Lower premiums then someone with a standard risk

This describes gross annual premium

Net premium plus expenses

What does liquidity refer to in a life insurance policy

Refers to the availability of cash to be insured through cash values

This policy is written on an individual basis with a face amount of 2000 or more. These policies are paid annually, semi annually, quarterly, or monthly

Ordinary life