Life insurance policies
Which of the following determines the cash value of a variable life policy? AThe policy's guarantees. BThe premium mode CThe performance of the policy portfolio DThe company's general account
c
Which of the following is a key distinction between variable whole life and variable universal life products? AVariable whole life allows policy loans from the cash value. BVariable universal life has a fixed premium. CVariable whole life has a guaranteed death benefit. DVariable universal life is regulated solely through FINRA.
c
Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit? AEquity Indexed Universal Life BVariable Universal Life CUniversal Life - Option A DUniversal Life - Option B
c
Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount? AVariable life BAdjustable life CUniversal life DFlexible life
c
Which of the following is TRUE about credit life insurance? ADebtor is the annuitant. BCreditor is the insured. CDebtor is the policy beneficiary. DCreditor is the policyowner.
d
Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client? AInterest-sensitive whole life BLife annuity with period certain CIncreasing term DLimited pay whole life
d
The death benefit in a variable universal life policy AAlways equals the face amount stated in the policy. BDepends on the performance of a separate account. CIs guaranteed to be higher than when the policy is originally issued. DIs fixed.
b
The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called AMultiple Protection insurance. BCredit life. CCredit health. DDecreasing whole life.
b
All of the following statements are correct regarding credit life insurance EXCEPT ABenefits are paid to the borrower's beneficiary. BThe amount of insurance permissible is limited per borrower. CPremiums are usually paid by the borrower. DBenefits are paid to the creditor.
a
Which of the following is an example of a limited-pay life policy? ALife Paid-up at Age 65 BRenewable Term to Age 70 CLevel Term Life DStraight Life
a
An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertibility options. When the insured renews the policy in 5 years, what will happen to the premium? AIt will increase each year during the next 5 years as the face amount increases each year. BIt will increase because the insured will be 5 years older than when the policy was originally purchased. CIt will remain the same for the new 5-year term. DIt will decrease for t
b
If an employee wants to enter the group outside of the open enrollment period, to reduce adverse selection, the insurer may AImpose medical requirements on existing members. BRequire evidence of insurability. CRequire a higher premium. DExtend the open enrollment period.
b
Which of the following policies would be classified as a traditional level premium contract? AVariable Universal Life BStraight Life CAdjustable Life DUniversal Life
b
All of the following are true regarding a decreasing term policy EXCEPT AThe contract pays only in the event of death during the term and there is no cash value. BThe face amount steadily declines throughout the duration of the contract. CThe payable premium amount steadily declines throughout the duration of the contract. DThe death benefit is $0 at the end of the policy term.
c
Annually renewable term policies provide a level death benefit for a premium that ARemains level. BFluctuates. CIncreases annually. DDecreases annually.
c
If an agent wishes to sell variable life policies, what license must the agent obtain? ASurplus Lines BPersonal Lines CSecurities DAdjuster
c
An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertibility options. When the insured renews the policy in 5 years, what will happen to the premium? AIt will remain the same for the new 5-year term. BIt will decrease for the new 5-year term since the insured is now a lesser risk to the company. CIt will increase each year during the next 5 years as the face amount increases each year. DIt will increase because the ins
d
If a life insurance policy increases significantly in face amount (death benefit) when the insured reaches a specified age, what type of policy is this? ALimited pay whole life policy BModified life insurance policy CSingle premium policy DJumping juvenile policy
d
An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen? AThe insurer will pay nothing because the employee has terminated his group insurance and hasn't started the individual one. BThe insurer will pay the full death benefit from the group policy to the beneficiary. CThe insurer will pay a reduced death benefit to the beneficiary. D
b
An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100 is called AGraded premium whole life. BSingle premium whole life. CModified Endowment Contract (MEC). DLevel term life.
b
All of the following are characteristics of group life insurance EXCEPT AIndividuals covered under the policy receive a certificate of insurance. BCertificate holders may convert coverage to an individual policy without evidence of insurability. CPremiums are determined by the age, sex and occupation of each individual certificate holder. DAmount of coverage is determined according to nondiscriminatory rules.
c
