LIFE INSURANCES POLICIES

6) What type of life insurance is most commonly used for group plans?

Annually Renewed Term

5) In credit life insurance, who is responsible for paying the policy premiums?

Borrower only

11) Which of the following is true regarding term insurance?

If the insured dies after the end of the term, there is no death benefit to the beneficiary.

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

Life Paid up at age 65

10) In a single employer group plan, what is the name of a document that is issued to the employer?

Master Contract

12) Which of the following is true regarding a joint life policy?

Premium is based on the average age of the insureds.

7) With a traditional whole life policy, the death benefit

Remain Constant Over Time.

2) An annually renewable term policy

Renews each year with an increased premium.

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

Require Evidence of Insurability.

14) If an agent wishes to sell variable life polices, what license must the agent obtain in addition to a life insurance license?

Securities Licenses

4) An insurance policy that only requires a payment of premium at its inception and provides insurance protection for the life of the insured and endows at the insureds age 100, is called.

Single Premium Whole Life

8) A policy that allows the beneficiary to collect both the death benefit and cash value upon the death of the insured is

Universal Life, Option B.

9) An insured receives a monthly summary regarding his life insurance policy. He notices that the cash value of the policy is significantly lower this month than it was last month. What type of policy does he have.

Variable

1) Which of the following types of policies will provide permanent protection?

Whole Life

13) The insured is also the policy owner of a whole life policy. What age must the insured attain in order to receive the policy's face amount?

Age 100