Life insurance basics

If someone wants to buy a life insurance policy that will provide lifetime protection against premature death, what type of life insurance policy should it be?

permanent

another name for a substandard risk classification is

rated

which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds

vacation travel expenses

which is the primary source of information used for insurance underwriting

Application

in the executive bonus plan who is the owner of the policy and who pays a premium

Executive is the owner and the Executive pays the premium.

what is the name of the insured who enters into a viatical settlement

Viator. Viator means the owner of a life insurance policy who enters into or seeks to enter into a viatical settlement contract.

which of the following applicants cut the insured charge a higher rate of premium and not violate regulations regarding unfair discrimination

an applicant who is a smoker

when an employer office to give an employee a wage increase in the amount of premium on a New life insurance policy this is called a

executive bonus

stranger originated life insurance policies are in direct opposition to the principal

insurable interest (STOLI)

which of the following statements is correct about a standard risk classification in the same age group and with similar lifestyles

Standard risk is representative of the majority of people.

A producer is helping a Merry couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as

Survivor protection

which of the following would not be considered a deceptive act

comparing an insurance current policy with a potential replacement policy

A producer agent must do all of the following when delivering a new policy to the insured except

disclose commissions earned from the sale of the policy

The life and disability insurance guarantee fun protects insurance and policyholders if

ensurers lack of money to pay off claims

if I change needs to be made to the application for insurance to agent may do all the following except

erase the incorrect answer and record the correct answer