Quiz 5
Jim needs Jan's permission to borrow the policy's loan value
Jan is named irrevocable beneficiary of Jim's life insurance policy. Which of the following statements is correct?
settlement options
The proceeds of a life insurance policy can be paid in a form other than a lump-sum payment. These forms of payment are called
distributed according to state law
When an estate is named beneficiary to a life insurance policy, the policy proceeds are
Number of beneficiaries
When the gross premium of a life insurance policy is computed, which of these factors is NOT included?
Income is paid until the principal amount decreases to zero
Which of the following does NOT describe a life income settlement option?
The principal amount gradually decreases to zero
Which of the following is true concerning the fixed period option?
Higher reserves
Which of these will NOT result in an increase in life insurance policy dividends?
interest only option
A life insurance beneficiary has chosen a settlement option in which the principal never decreases unless the beneficiary makes a withdrawal. This settlement option is called the
all of these
An example of a life insurance beneficiary is a(n)
money paid to an insurance company for benefits provided in the policy
An insurance premium can be defined as
revocable beneficiary
Barbara has the right to change the beneficiary designation on her life insurance policy. Barbara's beneficiary is a(n)
The cost
C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What factor would affect her decision the most?
Viatical settlement agreement
Carol is a life insurance policyowner who has transferred her ownership to a third party in exchange for a percentage of the death benefit. What is this called?
have a higher total outlay of dollars for the coverage for that year
If insurance premiums are paid more frequently than annually, the policyowner can expect to
monthly
The premium payment mode which results in the highest total premium is