quiz 5

The Payor Rider is mainly used with what policies? a.Juvenile b.Universal Life c.Return of Premium d.Whole Life

a.Juvenile

All the following term policies would have a level premium for at least 10 years except: a.20 year decreasing b.10 year convertible c.10/5 year level d.10 year renewable

c.10/5 year level

The death benefit of a whole life insurance policy is: a.Dependent upon the current interest b.Variable c.Fixed d.Adjustable

c.Fixed

What term insurance provision is an incentive for an insured to obtain lower premiums? a.Interest rate provision b.Renewable provision c.Re-entry provision d.Conversion provision

c.Re-entry provision

Whole life policies are permanent plans because they last for the duration of: a.The life of the insured with no age limit. b.The life of the insured or age 100. c.25 years or age 100, whichever comes first. d.25 years.

b.The life of the insured or age 100.

What life policy features a level premium and a death benefit that decreases each year? a.Increasing Term b.Decreasing Term c.Level Term d.Renewable Term

b.Decreasing Term

What is the difference between Par and Non-Par insurance policies? a.A Non-Par is a mutual company. b.A Non-Par is a nonparticipating life policy c.A Par is a stock company. d.A Par policy does not pay dividends to policyowners, but dividends are paid to stockholders.

b.A Non-Par is a nonparticipating life policy

What is a life policy written as a master policy? a.Industrial b.Group c.Ordinary d.Home service

b.Group

Which whole life policy insures two or more lives for a premium that is based on a joint age? a.Graded Premium Life b.Survivorship Life c.First to Die Life d.Limited-Pay Life

b.Survivorship Life

Term insurance is considered: a.Permanent, because it only last for the length of time specified in the contract. b.Temporary with no cash value. c.Permanent with no cash value. d.Temporary with surrender value.

b.Temporary with no cash value.

Companies rate their policies based on what mode? a.Quarterly b.Yearly c.Monthly d.BCP or automatic drafting plans.

b.Yearly

A form of term insurance that provides the policyowner with a reduced premium rate if he/she can requalify by providing evidence of insurability from time to time is referred to as: a.Re-entry term b.Convertible term c.Renewable term d.Qualified term

a.Re-entry term

________ charges a level annual premium with guaranteed death benefits to the insured when he/she is 100 years old. a.Limited Pay Life b.Ordinary Life c.Single Premium Life d.Modified Life

a.Limited Pay Life

All of the following are true regarding survivorship life except: a.Survivorship life is a contract that insures one person on the policy and one on a rider. b.face amounts are usually more than one million dollars. c.well situated to meet the need for cash to cover estate taxes. d.offers premiums that are quite low compared to premiums charged for separate policies.

a.Survivorship life is a contract that insures one person on the policy and one on a rider.

Which of the following types of contracts does not have a variable version? a.Term b.Whole Life c.Universal Life d.Annuity

a.Term

Which of the following are disadvantages to term insurance?a.Term policies have no living benefits b.Term policies offer many different time frames. c.Term policies offer temporary coverage for temporary needs. d.Term policies have a lower monthly premiums.

a.Term policies have no living benefits

Which of the following statements about decreasing term isfalse? a.Another name for this policy is mortgage protection policy. b.The death benefit decreases over the policy's term until it reaches 20% of the initial face amount. c.The death benefit decreases each year over the duration of the policy term. d.The policy features a level premium.

b.The death benefit decreases over the policy's term until it reaches 20% of the initial face amount.

Which of the following is true when comparing whole life with universal life? a.Universal life provides a structured premium and whole life a level premium b.The cash value in a whole life policy is invested into a cash account and universal life is invested into the general account. c.The death benefit in a whole life and universal life is fixed. d.The interest rate earned in a whole life policy is fixed and guaranteed. The interest rate paid by Universal life is interest-sensitive and the actual rate paid depends upon what the insurer can earn from year to year.

d.The interest rate earned in a whole life policy is fixed and guaranteed. The interest rate paid by Universal life is interest-sensitive and the actual rate paid depends upon what the insurer can earn from year to year.

All of the following apply to universal life except: a.Premiums can be increase or decrease at the policy owners option. b.Whether or not premiums are paid the policy stays in force as long as the cash account is sufficient to pay the insurance protection. c.The policy has both a current and guaranteed interest rate. d.The policy is considered unbundled as it consists of an increase term and a cash account.

d.The policy is considered unbundled as it consists of an increase term and a cash account.

All of the following statements about Whole Life are true except: a.Whole life policies are also known as permanent protection. b.Whole life policies builds cash value. c.Death benefits and premiums are guaranteed and remain level for the life of the policy. d.The premium generally lower than most permanent plans.

d.The premium generally lower than most permanent plans.

Which of the following policies endow at age 100? a.All permanent policies. b.Whole life and universal life policies c.Both traditional and flexible policies d.Whole life policies and 10 yr pay.

d.Whole life policies and 10 yr pay.

All the following statements are true about endowments except: a.Endowments are generally more expensive than other life policies. b.The living benefits are always paid to the beneficiaries. c.Endowments have a face amount that is payable in one of two ways. d.The period of time that provides protection is called the endowment window.

b.The living benefits are always paid to the beneficiaries.

All of the following concerning variable life is incorrect, except: a.Variable life policy has a flexible premium. b.The premium for the variable life policy purchases units. c.Variable life policies the insurer assumes the risk of the general account. d.Variable life policy both the cash value and death benefit are not guaranteed.

b.The premium for the variable life policy purchases units.

A Life Agent license will allow you to sell which of the following products without other licenses? a.Term life insurance with a mutual fund account attached. b.Universal life policy that has the death benefit linked to the S and P 500. c.Variable Annuities d.Variable Universal Life

b.Universal life policy that has the death benefit linked to the S and P 500.

The life insurance policy that is a 20 year pay with a level death benefit and the cash value increases in increments to an amount equal to the face of the policy at 65. a.20 pay life b.Limited pay life policy. c.Endowment d.Equity-index life

c.Endowment

Universal Life is a flexible premium adjustable benefit life insurance policy that: a.has a fixed premium with a flexible death benefit. b.endows for the face amount of the policy if the insured lives to 100. c.accumulates cash value. d.pays on the last death rather than the first.

c.accumulates cash value.

What is the difference between a jumping juvenile and a regular juvenile life policy? a.Regular juvenile allows the child to continue their policy at a higher premium at age 21. b.Jumping juvenile allows the child to purchase insurance without requiring evidence of insurability. c.Jumping juveniles will waive the premiums if the parent or guardian dies before child turns 21. d.Jumping juvenile`s face amount increases at a certain age, but premiums remain level.

d.Jumping juvenile`s face amount increases at a certain age, but premiums remain level.

All the following are true about the term conversion provision except: a.Policy can be converted at any time prior to the insured`s 65 birthday. b.Companies usually make at least one permanent plan available for conversion. c.Policy can be converted at any time before 20 years. d.Policies being waived must wait 30 days before converting.

d.Policies being waived must wait 30 days before converting.

The statement that does not apply to a Modified life policy would be: a.Premiums are payable to age 100 with one premium increase. b.The cash value will equal the face amount at age 100. c.Premiums are lower in the early years of the policy. d.Premiums increase in the early years of the policy however eventually level out.

d.Premiums increase in the early years of the policy however eventually level out.

A term policy is designed to mature upon: a.The insureds attained age. b.No later than age 65 c.The end of the policy period. d.The death of the insured during the insured period

d.The death of the insured during the insured period