LIFE AND HEALTH INSURANCE

GRACE PERIOD

30 DAY GRACE AND MAY IMPOSE AN INTEREST CHARGE NOT TO EXCEED 8%PER YEAR FOR THE NUMBER OF DAYS ELAPSING

EQUITY INDEXED ANNUTIES

ARE FIXED ANNUITITES THAT INVEST ON A RELATIVELY AGGRESSIVE BASIS TO AIM FOR HIGER RETURNS.

Accidental death and dismemberment (AD & D)

PAYS SOME MULTIPLE OF THE FACE AMOUNT IF DEATH IS THE RESULT OF AN ACCIDENT AS DEFINED IN THE POLICY. DEATH MUST USUALLY OCCUR WITH 90 DAYS THE BENEFIT IS NORMALLY TWO TIME (DOUBLE INDEMNITY) FACE AMOUNT Accidental death does not include death that results from any health problem or disability Self-inflicted injuries, war or hazardous hobbies This policy also expires at the age of 65. Pays the principal face amount for accident and capital sum for dismemberment

EXTENDED TERM

THE INSURER USES THE POLICY CASH VALUE TO CONVERT TO TERM INS. FOR THE SAME FACE AMOUNT AS THE FORMER PERMANENT

UNCONDITIONAL

TYPE OF RECIEPTS WILL THE COVERAGE BEGIN IMMEDIATELY EVEN IF THE APPLICANT IS LATER FOUND UNINSURABLE

ANNUITY UNITS

WHAT DO THE ACCUMULATION UNITS OF

VIATOR

WHO IS THE OWNER OF A LIFE INSURANCE POLICY OR A CERTIFICATE HOLDER UNDER A GROUP POLICY WHO ENTERS OR SEEKS TO ENTER INTO A VIATICAL SETTLEMENT CONTRACT

which of the following is true about a class designation?

a class of beneficiary is using a designation such as "my children" this cna be a vague term if the insured has been married more than once or has adopted or illegitmaite children. many insureers encourage the insured to name each child specifically and to statre the % of benefit they recieve

until the beneficiary is dead. a single beneficiary income for the rest of his/her life upon the death of the beneficiary the paymt stop

how long will the beneficiary recieve paymts under the single life option?

dividend-to-premium option

julie pays for her life ins. annually, until now, she has collected a nontaxable dividend check each year. julie has decided that she would rather use the dividends to help pay for her next premium . what option would allow her to do this?

it is ruduced to the amount ofwhat the cash value would buy as a single premium

when a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?

the cash values are not guaranteed. in a variable universal life policy, the death benefit is adjustable and cash values are not guaranteed. while the death benefit may decrease and increase, it cannot go below a guaranteedminumum face amount

which of the following is NOT true regarding a variable Universal life policy?

24 months

within how many months must a person be expected to die from a sickness in order to be classified a terminally ill?

INDEXED ANNUITIES

HAS A GUARANTEED MINUMUM INTEREST RATE THE CURRENT INTERST RATE THAT IS ACTUALLY CREDITED IS OFTEN TIED TO A FAMILIAR INDEX LIKE THE STANDARD AND POOR'S 500

WILL BE TAXED ON A LAST-IN-FIRST OUT BASIS

IF A LIFE INSURANCE POLICY IS DEEMED TO BE A MODIFIED ENDOWMENT CONTRACT, THE POLICY LOANS ? (ONCE A POLICY IS DEEMED TO BE A MODIFIED ENDOWMENT CONTRACT, ANY POLICY LOANS OR SURRENDERS PRIOR TO THE OWNERS AGE OF 59 1/2 WILL BE TAXED ON A LAST IN FIRST OUT BASIS)