Life Only Exam II

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if a dependent child covered by a group life plan is incapable of self-support, coverage under the plan may continue up to which age?

any age as long as disabled

the guarantee insurability rider provides that the policy holder can purchase more insurance at what point and under what conditions

at certain specific ages on his own life insurance without proof of insurability

which party has rights in a life insurance policy only after the death of the insured

beneficiary

the policy provision which comes into effect when the insured and the primary beneficiary die in a simultaneous accident with no evidence of who died first

common disaster provision

which of the following is considered ordinary life insurance

continuous premium whole life

which of the following applies to social security

contributions are compulsory for most workers

after a life insurance policy has been in effect for 2 years, what keeps it from being rescinded by the owner

the incontestability clause

which of the following is a correct statement about life insurance policy types?

the initial premium for term insurance is lower than the initial premium for whole life insurance

an insured and beneficiary die in a car accident and it is impossible to determine who died first. who will receive the life insurance proceeds

the insured's estate

regarding group life insurance coverage for a company, the one responsible for obtaining the coverage, maintaining the policy, and paying the premium is whom

the master policy holder

all of the following are true about variable annuity EXCEPT

the number of units received during a payout period fluctuates

a variable annuity applicant requests that the premium be immediately invested in a stock portfolio. the policy is returned to the insurer within the cancellation period. what is the applicant entitled to receive

the policy account value on the date the policy was received by the insurer

all of the following statements regarding survivorship life insurance are true EXCEPT

the policy face amount is made out based only on the death of the first to die

what is an example of a term policy

the policy has a face amount of $100,000, every 5 years the premium paid increases, after 10 years the policy holder stops paying the premiums, the coverage stops and policy has no cash value

what is true about policy dividends

they cannot be guaranteed

an insured bought a $150,000 non-participating whole life policy many years ago. she is 100 years old today. she has never borrowed from the policy, and has made all premium payments when due. the policy cash value is

$150,000

all of the following are true regarding variable insurance products EXCEPT

the growth in the cash value is guaranteed

an annuity that pays income to two or more annuitants until their deaths is called what

a joint and survivor annutiy

person receives a large bonus at work and decides to purchase an annuity with it, his monthly income payments from the annuity will begin the following month. what did he purchase

a single premium immediate annuity

all are required to be included in life insurance illustrations EXCEPT

a statement that the benefits in the illustration are guaranteed

all of the following must be included in life insurance illustrations EXCEPT

a statement that the benefits in the illustration are guaranteed

which provision will pay a portion of the death benefit prior to the insured's death due to a serious illness

accelerated death benefit

which is part of an application

agent report

all of the following are true statements concerning the treatment of federal income tax on life insurance EXCEPT

annuity death benefit proceeds are exempt from all taxation

insurers make an adjustment to the cash value of an account of a universal life policy each time a payment is made. in doing so, they add the premium paid, what else do they add

current interest adjusted for mortality, and a general expense charge

the doctrine of utmost good faith applies to the business of transacting insurance. which of the following is an example of this application

each party is entitled to rely upon the representations of the other party

the master policy owner of a group health insurance contract is the

employer/sponsor

which of the following are common insurance policy provisions

entire contract, grace period, reinstatement

When a family policy covers children, all of the following are true EXCEPT

evidence of insurability is required for children for permanent insurance

which of the following policy provisions allow the life insurance company to pay the death benefits left to a minor, to the guardian of the minor?

facility of payment provision

a beneficiary wants to receive $2,000 per month until the principle and interest are exhausted. which settlement option should be chosen

fixed amount option

unless the applicant indicates otherwise during the right to return period for an individual annuity, the premium for a variable annuity would be invested only in which of the following

fixed income investments and money marketing funds

which of the following is not an option for the use of the policy dividends

fund the distribution of monthly income payment

which of the following is not one of the common personal uses of life insurance

funding a buy/sell agreement

which of the following is not ordinary life insurance

group life insurance policy

for a non-medical life insurance policy application what is best practice for selling this policy

if the answers given in the health statement do not meet the company's underwriting standards, a medical exam is required

which of the following is true about life insurance beneficiary designations

is there is not surviving beneficiary, the death benefit is paid to the insured's estate

which statement best describes a life insurance policy dividend

it is a distribution of excess funds accumulated by the insurer on participating policies

in order to join a group insurance plan without proving insurability, an employee must do which of the following

join the plan during the enrollment period

the annuity that pays the benefit to two or more people and ends upon the death of the first is know as what

joint life

which of the following annuity pay out methods pays for the duration of the annuitant's life

life annuity, life income period certain, life income with refund

the settlement option that puts the insurer in the position of the least guaranteed and also has the potential to generate the greatest return to the policy owner is known as what

life income option

life insurance illustrations showing premiums, values, credits or charges that are not determined at issue demonstrate what

non-guaranteed elements

the class beneficiary designation means that the surviving beneficiaries will receive equal shared of the death benefit divided amongst them. what is this designation called

per capita

who has the right to change life insurance policy beneficiaries

policy owner

in a group life policy with a death benefit of more than $50,000 which of the following is true

premium cost for insurance above $50,000 is part of the taxable gross annual income to employees

if an insurer indicates than an illustration will be used, they must do what

provide a summary status report to the policy owner on an annual basis

which type of insurance policy guarantees the right to renew the policy each year, regardless of health, with an increase in premium

renewable term

the clause that protects the proceeds of a life insurance policy from attachment by creditors after the death of the insured is called what

spendthrift trust clause

an individual with a low income and high insurance needs should buy what

term insurance

all of the following is required on a life insurance application EXCEPT

the amount of disability income insurance in force

$10,000 in a certificate of deposit, 10% annual interest, in the 31% income tax bracket. for 40 years, person does not touch his annuity and reinvests all income from the CD at 10%. what statement is true

the annuity would be worth several hundred thousand more because of the tax deferral of the earnings

the common disaster provision is designed to protect the interests of whom

the contingent or secondary beneficiary

with the cost of living rider, what occurs with the life insurance policy holder

they receive the automatic increase in the face value if there is an increase in the cost of living index. there is an additional premium for the additional coverage

Why should a contingent beneficiary be named in a life insurance policy?

to determine who receives the policy benefits if the primary beneficiary is deceased

an insured bought an annuity 10 years ago, he will retire in five years. to determine the value of the annuity, the number of accumulation units is multiplied by the value of the separate account. which type of annuity was purchased

variable annuity

which policy requires that the agent be securities licensed

variable life


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