THINGS TO WORK ON

If the insurer does not pay the death benefit to the beneficiary within the required time period, what interest rate will be assessed on the proceeds?

6%

Which of the following features of the Indexed Whole Life policy is NOT fixed?

Cash value growth

Which of the following is TRUE about credit life insurance?

Creditor is the policyowner.

What are the two components of a universal policy?

Insurance and cash account

Which of the following is true regarding the spendthrift clause in life insurance policies?

It can protect the policy proceeds from creditors of the beneficiary.

In Modified Life policies, what happens to the premium?

It is level at the beginning and increases after the first few years.

Jumping juvenile policy mean

Jumping juvenile allows the child to purchase insurance without requiring evidence of insurability.

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

An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called

Paid-up additions.

what is a spendthrift clause

Prevents beneficiary from selling or borrowing against benefits before insured's death.

Which nonforfeiture option provides coverage for the longest period of time?

Reduced paid-up

When an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy, as well as a refund of all of the premiums paid. Which rider is attached to the policy?

Return of premium

If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back?

The balance of the loan will be taken out of the death benefit.

Which of the following are generally NOT considered when underwriting group insurance?

The insureds' medical history

What is the advantage of reinstating a policy instead of applying for a new one?

The original age is used for premium determination.

All of the following are true regarding a decreasing term policy EXCEPT

The payable premium amount steadily declines throughout the duration of the contract.

Under an extended term nonforfeiture option, the policy cash value is converted to

The same face amount as in the whole life policy.

fixed mean

cant be changed until certain time

If a Children's Term rider is attached to a life insurance policy,

children can be covered under the policy until they reach the maximum age stated in the policy. At that point, they can convert their coverage to a new policy without having to issue proof of insurability.

Which of the following types of insurance policies is most commonly used in credit life insurance?

decreasing term insurance

The provision which states that both the policy and a copy of the application form the contract between the policyowner and the insurer is called the

entire contract

What type of insurance would be used for a Return of Premium rider?

increasing term

Which of the following best describes annually renewable term insurance?

it is level term insurance

Universal Life policies allow for

policyholders to withdraw a limited portion of the policy's cash value. Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited.

The Waiver of Cost of Insurance rider is found in what type of insurance?

universal life