Primerica - Life Insurance Policies (AZ)
In a survivorship life policy, when does the insurer pay the death benefit? A - If the insured survives to age 100 B - Upon the last death C - Upon the first death D - Half at the first death, and half at the second death
B - Upon the last death Survivorship life pays on the last death rather than upon the first death.
All of the following entities regulate variable life policies EXCEPT A - The SEC. B - The Insurance Department. C - The Guaranty Association. D -Federal government.
C - The Guaranty Association. Variable life insurance is regulated by both the state and federal government, as well as the Insurance Department, and the SEC.
Which of the following is TRUE about credit life insurance? A - Debtor is the policy beneficiary. B - Creditor is the policyowner. C - Debtor is the annuitant. D - Creditor is the insured.
B - Creditor is the policyowner. In credit life insurance, the creditor is the policyowner and the beneficiary; the debtor is the insured.
Which of the following types of insurance policies is most commonly used in credit life insurance? A - Equity indexed life B - Decreasing term C - Increasing term D - Whole life
B - Decreasing term Credit 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. It is usually written as decreasing term insurance.
Which of the following is NOT allowed in credit life insurance? A - Creditor requiring that a debtor buys insurance from a certain insurer B - Creditor having a collateral assignment on the policy C - Creditor requiring that a debtor has a life insurance D - Creditor becoming a policy beneficiary
A - Creditor requiring that a debtor buys insurance from a certain insurer In credit life insurance, creditor may require that the debtor has a life insurance, but they cannot tell you who to buy the insurance from.
Which of the following is an example of a limited-pay life policy? A - Life Paid-up at Age 65 B - Renewable Term to Age 70 C - Level Term Life D - Straight Life
A - Life Paid-up at Age 65 Limited Pay Whole Life premiums are all paid by the time the insured reaches age 65. The policy endows when the insured turns 100. It is the premium paying period that is limited, not the maturity.
Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client? A - Limited pay whole life B - Interest-sensitive whole life C - Life annuity with period certain D - Increasing term
A - Limited pay whole life Premium payments will cease at her age 65, but coverage will continue to her death or age 100.
In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT A - The amount of insurance. B - The type of investment. C - The length of coverage. D - The premium.
B - The type of investment. Typically, the owner of an adjustable life policy has the following privileges: increasing or decreasing the premium, changing the premium-paying period, increasing or decreasing the face amount of coverage, or changing the period of protection.
A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that? A - Joint Life Policy B - Survivorship Life Policy C - Second-to-Die D - Family Income Policy
A - Joint Life Policy Joint life policies cover the lives of two insureds; rates are blended. Upon the death of the first insured, the policy ends.
A Straight Life policy has what type of premium? A - An increasing annual premium for the life of the insured B - A decreasing annual premium for the life of the insured C - A variable annual premium for the life of the insured D - A level annual premium for the life of the insured
D - A level annual premium for the life of the insured Straight Life policies charge a level annual premium for the lifetime of the insured and provide a level, guaranteed death benefit.
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? A - 1 B - 3 C - 5 D - 10
C - 5 If the master contract is terminated, every individual who has been on the plan for at least 5 years will be allowed to convert to individual insurance of the same coverage.
Which of the following would help prevent a universal life policy from lapsing? A - Face amount B - Adjustable premium C - Corridor of insurance D - Target premium
D - Target premium The target premium is a recommended amount that should be paid on a policy in order to cover the cost of insurance protection and to keep the policy in force throughout its lifetime.
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? A - Nothing B - $50,000 C - $100,000 D - $200,000
C - $100,000 In joint life policies, the death benefit is paid upon the first death only.
When an employee terminates coverage under a group insurance policy, coverage continues in force A - For 60 days. B - Until the employee can obtain coverage under a new group plan. C - Until the employee notifies the group insurance provider that coverage conversion policy is issued. D - For 31 days.
D - For 31 days. An employee has 31 days under the conversion privilege to convert to an individual policy.
Which of the following best describes annually renewable term insurance? A - It is level term insurance. B - It requires proof of insurability at each renewal. C - Neither the premium nor the death benefit is affected by the insured's age. D - It provides an annually increasing death benefit.
A - It is level term insurance. Annually renewable term is a form of level term insurance that offers the most insurance at the lowest cost.
Which of the following statements about group life is correct? A - The cost of coverage is based on the ratio of men and women in the group. B - The premiums are higher than in an individual policy because there is no medical exam. C - The group sponsor receives a Certificate of Insurance. D - The policy can be converted to an individual term insurance policy.
A - The cost of coverage is based on the ratio of men and women in the group. Group life insurance can be converted to an individual whole life, not a term, policy; the group life insurance premiums are usually lower than those of an individual policy; the group sponsor receives a master contract, while the participants receive certificates of insurance. The cost of the coverage is based on the average age of the group and the ratio of men to women.
An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen? A - The insurer will pay a reduced death benefit to the beneficiary. B - The insurer will pay the death benefit minus one month's premium. C - The insurer will pay nothing because the employee has terminated his group insurance and hasn't started the individual one. D - The insurer will pay the full death benefit from the group policy to the beneficiary.
D - The insurer will pay the full death benefit from the group policy to the beneficiary. The employee usually has a period of 31 days after terminating from the group in order to exercise the conversion option. During this time, the employee is still covered under the original group policy.
When would a 20-pay whole life policy endow? A - When the insured reaches age 100 B - At the insured's age 65 C - After 20 payments D - In 20 years
A - When the insured reaches age 100 A limited-pay whole life policy, just like straight life, endows for the face amount if the insured lives to age 100. The premium is, however, completely paid off in 20 years.
Annually renewable term policies provide a level death benefit for a premium that A - Fluctuates. B - Increases annually. C - Decreases annually. D - Remains level.
B - Increases annually. Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured.
An Adjustable Life policyowner can change which of the following policy features? A - The insured B - The coverage period C - The mortality expense D - The investment account
B - The coverage period Typically, the owner of an adjustable life policy has the following privileges; increasing or decreasing the premium; changing the premium-paying period; increasing or decreasing the face amount of coverage; or changing the period of protection.
A domestic insurer has just decided to change the investment policy of a separate account. After this change is filed with the Director, how soon will it become effective? A - 7 days B - 30 days C - 90 days D - 60 days
D - 60 days These changes become effective 60 days after they are filed with the Director.