Life Insurance Policies: Quiz

Which of the following life insurance policies allows a policyowner to take out a loan from the policy's cash value?

Variable Universal Life

All of the following are characteristics of group life insurance plan EXCEPT

$100,000

Which universal life option has a gradually increasing cash value in a level death benefit?

Option A

Which of the following is the second-to-die policy?

Survivorship life

Which of the following statements about group life is correct?

The cost of coverage is based on the ratio of men and woman in the group

Which of the following life insurance policies would be considered interest sensitive?

Universal life

Which of the following is correct regarding credit life insurance?

Ensures the life of the debtor

Which policy component decreases in deceasing term insurance?

Face amount

Type of premium do both universal life and variable, universal life policies have?

Flexible

Insurance policy that only requires a payment of premium at its inception, provides insurance protection of the whole life of the insured, amateurs at the insured's age 100 is called

Single premium whole life

In a group, life insurance policy, the employer, my select all the following EXCEPT

The beneficiary

When would a 20 -pay whole life policy endow?

The insured reaches page 100

Which of the following is an example of a limited -pay life policy?

life pay up at 65

The following types of policies allows the policy owner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?

universal life

What is the purpose of establishing the target premium for universal life policy?

Keep the policy in force

Death protection component of a universal life insurance is always:

Annually Renewable term

Employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on:

Attained age

A universal Life insurance policy has two types of interest rates that are called

Guaranteed and Current

Which of the following best describes annually renewable term insurance?

It is level term insurance

Which of the following best describes annually, renewable term insurance?

It is level term insurance

All of the following are characteristics of group life insurance EXCEPT

Premiums are determined by the age, sex, and occupation of each individual certificate holder

Which of the following best describes annually renewable term insurance?

Provides level term insurance

To sell variable, life, insurance policies, and agent must receive all of the following EXCEPT

SEC registration

An individual purchased a $100,000 Joint Life insurance policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receive from the policy?

$100,000

An individual purchased $100,000 joint life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receipt for the policy?

$100,000

An individual purchased $100,000 joint life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receive for the policy?

$100,000

Which statement is NOT true regarding the straight life policy?

It's premium steadily, decreases overtime, in response to it's growing cash buyer

Which of the following is an example of limited-pay life policy?

Life paid-up at age 65

The LEAST expensive first - year premium is found in which of the following policies?

Annually, renewable term

Annually renewable term policy provide a level death benefit for premium that:

Increases annually

Which statement is NOT true regarding a straight Life policy:

It steadily decreases over time, in response to its growing cash value

Which of the following types of policies allows for a flexible premium and a variable investment component?

Payable premium amount steadily declines throughout the duration of the contract

Group life insurance is a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is correct?

100% participation of members is required in contributory plans

Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still prove a death benefit should one of them die?

Joint Life

In a survivorship policy, when does the insurer pay the death benefit?

Upon the last death

Which of the following would help prevent a universal life policy from lapsing?

Target premium

Which policy component decreases in decreasing term insurance?

Face amount

Type of premium do both universal life and variable universal life policies have?

Flexible

Which of the following is required number of participants in a contributory group plan?

75%

At age 30, an applicant wants to start an insurance program, but realizing that his insurance needs will likely change, he wants a policy that can be modified to accommodate those changes as they occur. Which of the following policies would likely fit his needs?

Adjustable Life

At age 30, an applicant wants to start an insurance program, but realizing that his insurance needs will likely change, he wants a policy that can be modified to accommodate those changes as they occur. Which of the following policies would most likely fit his needs?

Adjustable life

A man decided to purchase $100,000 annually, renewable term life policy to provide additional protection until the children finish college.

Choir at a premium increase each renewal

Which of the following should be the beneficiary and credit life insurance?

Creditor

The following is NOT allowed in credit life insurance?

Creditor requiring the debtor buys insurance from a certain insurer

An insured buys a five - year level premium term policy with a face amount of $10,000. The policy also contains a renewability and convertibility options. When the insured renews the policy in five years, what will happen to the premium?

Increase because the insured will be five years older than when the policy was originally purchased

The premium of a survivorship life policy compared with that of a joint life policy would be

Lower

The premium of a survivorship life policy compared with that of a joint life policy would be?

Lower

Purchase $100,000 annually, renewable term life policy to provide additional protection until his children finished college. He discovered that this policy:

Required a premium increase each renewal

A man decides to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy.

Required a premium increase renewal every year

Employee has group life insurance through her employer. After five years, she decides to leave the company and work independently. How can she obtain an individual policy?

She can convert her group policy to an individual policy without proof of insurability within 31 days of leaving the group plan

In a group life insurance policy, the employer may select all of the following EXCEPT

The beneficiary

Which of the following are TRUE regarding the insurance amount in the credit life policy?

The creditor can only insure the debtor for the amount owed

The Policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?

The death benefit can be increased by providing evidence of insurability

All of the following are characteristics of a group life insurance plan EXCEPT

There is a requirement to prove insurability on the part of the participants

If employee wants to enter the group outside of the open enrollment, period, to reduce adverse selection, the insurer may:

Require evidence of insurability

Which of the following best defines target premium in a universal life policy?

The recommended amount to keep the policy in force throughout its lifetime

Which of the following policies would be classified as a traditional level premium contract?

Straight life

In an adjustable life policy all the following can be changed by the policyowner EXCEPT

Type of investment

What percentage of a company's employees must take part in a noncontributory group life plan?

100%

Group life insurance, as a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is CORRECT?

100% participation of members is required and non-contributory plans

Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid:

For 20 years, or until death, whichever occurs first

A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that?

Joint Life Policy

An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?

Limited-pay life

All of the following are true regarding a decreasing term policy EXCEPT

People premium amount steadily declines throughout the duration of the contract

What type of insurance policy generates immediate cash value?

Single Premium

Which of the following policies would be classified as a traditional level premium contract?

Straight Life

Which of the following would help prevent a universal life policy from lapsing?

Target insurance

Which of the following policies would have an IRS required corridor work out between the cash value in the death benefit?

Universal life - option A

An insured has a life insurance policy that requires them to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?

Limited-pay life

Your client wants both protection savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?

Limited-pay whole life

And insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?

Limited -pay life

An individual has just borrow $10,000 from his bank on a five - year installment loan requiring monthly payments. What type of life insurance policy would be best suited to the situation?

decreasing term

When an employee terminated coverage under a group insurance. Policy, coverage continues in force

For 31 days

The following could own group life insurance EXCEPT

A group meeting low - cost Life Insurance:

Your client wants both protection savings from the insurance, and is willing to pay premiums until retirement at age 65. What should be the right policy for this client?

Limited pay whole life

Adjustable life policy owner can change which of the following policy features?

The coverage period

The policyowner of an adjustable life policy wants t increase the death benefit. Which of the following statements is correct in regarding this change?

The death benefit can be increased by providing evidence of insurability

Which of the following types of policies allows for a flexible premium in a variable investment component?

variable universal life insurance

Straight life policy has what type of premium?

A level annual premium for the life of the insured

A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that?

Insurance and cash account

An employee has a group life insurance through he employer. After 5 years, she decides to leave the company and work independently. How can she obtain an individual policy?

She can convert her policy to an individual policy without proof of insurability within 31 days of leaving the group plan

Which if the following is considered INCORRECT?

The employees receive individual plans

Which of the following is INCORRECT concerning a noncontributory group plan?

The employees receive individual policies

Which of the following are generally not considered when underwriting group insurance?

The insurance medical history

Group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to ban together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why?

The purpose of the group was the purchased Life Insurance

Which of the following life insurance policies would be considered interest-sensitive?

Universal life

Which of the following types of policies allows for a flexible premium and available investment component?

Variable universal life insurance

Which of the following types of policies allows for a flexible premium and a variable investment component?

Variable universal life insurance