Policies Quiz
All of the following could own group life
A debtor group, A group sponsored by an employer and an alumni group (Not a group needing low-cost life insurance)
The policy owner of a Universal Life policy may skip paying the premium and the policy will not lapse as long as
The policy contains sufficient cash value to cover the cost of insurance.
To sell variable life insurance policies an agent must receive what?
A securities license, A life insurance license and FINRA registration
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.
Which of the following is called a "second-to-die" policy?
Survivorship life
Which of the following policies would be classified as a traditional level premium contract?
Straight Life
In a survivorship life policy, when does the insurer pay the death benefit?
Upon the last death
Which types of policies allows for a flexible premium and a variable investment component?
Variable universal life insurance
An individual purchased a $100,000 Joint Life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receive from the policy?
$100,000 In joint life policies, the death benefit is paid upon the first death only.
An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertibility options. When the insured renews the policy in 5 years, what will happen to the premium?
It will increase because the insured will be 5 years older than when the policy was originally purchased. The premium will remain level during the entire level premium term policy period. If the policy renews at the end of the term, the premium will be based on the insured's attained age at the time of renewal.
An insured has a Level Term Life Insurance policy that is guaranteed renewable and also includes a re-entry provision. The re-entry provision would allow the insured to renew the policy and ...
Pay a lower renewable premium by proving insurablilty.
The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called
Credit life.
To sell variable life insurance policies, an agent must receive all of the following EXCEPT
SEC registration
An employee has group life insurance through her employer. After 5 years, she decides to leave the company and work independently. How can she obtain an individual policy?
She can convert her group policy to an individual policy without proof of insurability within 31 days of leaving the group plan.
A group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why?
The purpose of the group was to purchase life insurance.
The policy owner 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 the insurability. The policy owner (insured) would need to prove insurability for the amounts of the increase.
