Exam FX
participants in the policy each receive a policy
All of the following statements are true regarding group insurance EXCEPT
paid-up additions
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
Inspection report
An underwriter may obtain information on an applicant's hobbies, financial status, and habits by ordering a(n)
10 years
Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to
The beneficiary can only be changed with written permission of the beneficiary.
If a life insurance policy has an irrevocable beneficiary designation,
the death benefit will be smaller
If an insured withdraws a portion of the face amount in the form of accelerated benefits because of a terminal illness, how will that affect the payable death benefi the policy?
3 months
If the policyowner defaults on any premium payment for a life insurance policy, the insurer must notify the policyholder in writing as to the policyholders options. This notification form must be provided to the policyholder within
Applicant's past income
In classifying a risk, the Home Office underwriting department will look at all of the following EXCEPT
the original age is used for premium determination
What is the advantage of reinstating a policy instead of applying for a new one?
Their premiums are lower
Which is generally true regarding insureds who have been classified as preferred risks?
the performance of the policy portfolio
Which of the following determines the cash value of a variable life policy?
long-term care
Which of the following riders added to a life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in a nursing or convalescent home?
The insurance company
Who bears all of the investment risk in a fixed annuity?
insurer
Who makes up the Medical Information Bureau?
24
Within how many months must a person be expected to die from a sickness in order to be classified as terminally ill?