BIO TOPIC 10 Cellular Respiration

Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income?

Depreciation period

What does "level" refer to in level insurance?

Face amount

Which policy component decreases in decreasing term insurance?

Face amount

An insured purchased a variable insurable policy with a face amount of $50,000. Over the life of the policy, stock performance declined and the cash value fell to $10,000. If the insured dies, how much will paid out?

$50,000

The insured is also the policyowner of a whole life policy. What age must the insured attain in order to receive the policy's face amount?

100

If the owner of a whole life policy who is also the insured dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary?

A full death benefit

A Straight Life policy has what type of premium?

A level annual premium for the life of the insured

For variable products, underlying assets must be kept in

A separate account

Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be

Adjusted to the insured's age at the time of renewal.

The minimum interest rate on an equity indexed annuity is often based on

An index like Standard & Poor's 500

The death protection component of Universal Life insurance is always

Annually Renewable Term

A universal Life insurance policy is best described as a/an

Annually Renewable Term policy with a cash value account

Which of the following is INCORRECT regarding a $100,000 20-year level term policy?

At the end of 20 years, the policy's cash value will equal $100,000.

The type of policy that can be changed from one that does not accumulate cash value to the one that does is a

Convertible Term Policy

What is another name for interest-sensitive whole life insurance?

Current assumption life

The term "fixed" in a fixed annuity refers to all of the following EXCEPT

Death benefit

Which of the following is NOT fundable by annuities?

Death benefits

an individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?

Decreasing term

An individual has been making periodic premium payments on an annuity. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. What type of annuity is it?

Defered

Why is an equity indexed annuity considered to be a fixed annuity?

It has a guaranteed minimum interest rate

Which of the following best describes annually renewable term insurance?

It is level term insurance.

Which of the following is TRUE regarding annuity period?

It may last for the lifetime of the annuitant

Which of the following is NOT true regarding the accumulation period of an annuity?

It would not occur in a deferred annuity

which statement is NOT true regarding a Straight Life policy?

Its premium steadily decreases over time, in response to its growing cash value.

Equity Indexed Annuities

Seek higher returns

Which type of life policy generates immediate cash value?

Single Premium

An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100 called

Single premium whole life

Which of the following policies would be classified as a traditional level premium contract?

Straight Life

Which of the following is called a "second-to-die" policy?

Survivorship life

All of the following are true about variable products EXCEPT

The premiums are invested in the insurer's general account

Which of the following best defines target premium in a universal life policy?

The recommended amount to keep the policy in force throughout its lifetime

Which of the following is NOT true regarding Equity Indexed Annuities?

They earn lower interest rates than fixed annuities

Which of the following is TRUE for both equity indexed annuities and fixed annuities?

They have a guaranteed minimum interest rate.

what is the purpose of establishing the target premium for a universal life policy?

To keep the policy in force

An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?

Universal Life

What kind of policy allows withdrawals or partial surrenders?

Universal Life

In a survivorship life policy, when does the insurer pay the death benefit?

Upon the last death

Which of the following types of policies allows for a flexible premium and a variable investment component?

Variable universal life insurance

The main difference between immediate and deferred annuities is

When the income payments begin

Which of the following types of policies will provide permanent protection?

Whole Life

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

In which of the following cases will the insured be able to receive the full face amount from a while life policy?

If the insured lives to age 100

A man purchased a $90,000 annuity with a single premium, and began receiving payments 2 months after that. What type of annuity is it?

Immediate

Annually renewable term policies provide a level death benefit for a premium that

Increase annually

During partial withdrawal from a universal life policy, which portion will be taxed?

Interest

Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?

Joint Life

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?

Level Term

Which of the following is NOT a type of whole life insurance?

Level Term

Variable Whole Life insurance is based on what type of premium?

Level fixed

Which of the following is NOT a type of while life insurance?

Level term

Which of the following is an example of a limited-pay life policy?

Life Paid-up at Age 65

An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?

Limit-pay life

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?

Limited pay whole life

Which Universal Life option has a gradually increasing cash value and a level death benefit?

Option A

Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?

Option B

Which of the following is another term for the accumulation period of an annuity?

Pay-in-period

Which of the following has the right to convert the existing term coverage to permanent insurance?

Policyowner

Which of the following is NOT one of the three basic types of coverages that are available, based on how the face amount changes during the policy term?

Renewable

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy

Required a premium increase each renewal

To sell variable life insurance, an agent must receive all of the following EXCEPT

SEC registration

If an agent wishes to sell variable life policies, what license must the agent obtain?

Securities

Which of the following would help prevent a universal life policy from lapsing?

Target premium

which of the following types of insurance polices would provide the greatest amount of protection for a temporary period during which an insured will have limited financial resources?

Term

All of the following statements about equity index annuities are correct EXCEPT

The annuitant receives a fixed amount of return.

If the annuitant dies during the accumulation period, who will receive the annuity benefits?

The beneficiary

The annuity owner dies while the annuity is still in the accumulation stage. Which of the following is TRUE?

The beneficiary will receive the greater of the money paid into the annuity or the cash value

The policyowner 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 insurability

An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?

The insured may renew the policy for another 10 years, but at a higher premium rate

All of the following are true of an annuity owner EXCEPT

The owner must be the party to receive benefits

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

The payable premium amount steadily declines throughout the duration of the content

The policyowner of a Universal Life 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