Series 6 3.12
How long is the free-look period for a variable life insurance policy?
-10 days after delivery. -45 days after application.
Which of the following information must be included in a prospectus describing variable life insurance to customers?
-Summary explanation in nontechnical terms of -Statement of investment policy of the separate account.
For an insurance company, mortality risk turns out unfavorably if:
-an annuitant lives longer than expected. -a life insurance holder dies sooner than expected.
A policy loan provision must be offered by the insurer after three years, allowing the variable life policy contract holder to borrow at least what percentage of cash value?
75%
A variable life insurance plan may charge a maximum sales charge of
9% over a period not to exceed 20 years.
If a VL policy is terminated after 2 years, customer receives:
Policy cash value only
Which of the following is a possible advantage of variable life insurance over whole life insurance?
Possible inflation protection for the death benefit.
A customer has a variable life insurance policy and has made two annual premium payments. If the customer terminates the policy after the end of the second year, which of the following statements are TRUE?
The customer receives the policy cash value only.
An investor who cancels a policy within the free look period would receive:
a full refund of all money paid to date
The death benefit of a variable life policy must be calculated at least:
annually
When discussing the purchase of a scheduled premium variable life insurance policy with a client, it would be CORRECT to state that:
by surrendering the policy its cash value may be obtained.
Marianne has a fixed premium variable life policy in which the separate account has been performing extremely well, and the face value has been increasing as a result of the investment performance. However, recently the separate account performance has been negative. If this continues, the face value could decrease:
to the original face value.