Chapter 2

And insured's purchase a variable life insurance policy with a face amount of 50,000. Over the life of the policy, stock performance declined in the cash value felt a 10,000. Is the insured dies, how much will be paid out

50,000

An individual just borrow 10,000 from his bank on a five year installment loan requiring monthly payments. What type of life insurance policy would best suit to the situation

Decreasing term

Insured purchased a 10 year level term policy those guaranteed renewable convertible. What happens at the end of the 10 year.

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

Which of the following best describes annually, renewable term insurance

It is level term insurance

Bee just bought a new car, which he anticipates will be paid for four years from now. He also wants to buy life insurance policy, but is financially limited until the car is paid off. Which of the following types of policies would be best suit for B?

Modified life

All of the following entities, regulate variable life policies, except

The Guaranty Association

The policy owner of a universal life policy may skip paying the premium in the policy will not last as long as

The policy contains efficient cash value to cover the cost of insurance

Which of the following is true regarding an indeterminate premium whole life policy

The premium can be raised up to a guaranteed maximum rate.

Which of the following policies would have an IRS required corridor or gap between the cash value in the death benefit

Universal Life - Option A

And insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policies cash value. There is a limit for withdrawing the insured charges a fee. What time are policy does the insured most likely have?

Universal life

What kind of policy issues certificates of insurance to insureds?

group insurance

Which of the following is called a second to die policy

survivorship life