Life Ins. Questions

Which of the following is true regarding the annuity period?

It may last for the lifetime of the annuitant

Which statement best describes agreement as it relates to insurance contracts?

One party accepts the exact terms of the other party's offer

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

annually renewable term policy with a cash value account

Which of the following statements below are INCORRECT concerning Modified Endowment Contracts (MECs)?

An MEC must always pass the 7-pay test

Which statement below is INCORRECT regarding the type of term insurance that fits best with the applicant's needs?

Applicants who may require a larger death benefit in the future should buy convertible term insurance

A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy will?

Continue to increase

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

Extended Term

Which of the following entities is considered the principal?

The insurer issuing the policy

All of the following are true about variable products except?

The premiums are invested in the insurers general account.

All of the following are true about variable products except

the premiums are invested in t insurers general account

When term insurance is added to the main policy to enhance the policy or provide added benefit or coverage, it is called a?

Term Rider

An agent who knowingly misrepresents material information for the purpose of inducing an insured laps, forfeit, change or surrender a life insurance policy has committed an illegal practice know as?

Twisting

If a policy is being replaced, the replacement company must be notified by the?

Producer

What does the application of contract of adhesion mean?

Since the insured does not participate in the contract, any ambiguities would be resolved in favor of the insured