Ch. 3 Quiz Life Policies

Ace your homework & exams now with Quizwiz!

Which of theses provisions require proof of insurability after a policy has lapsed?

reinstatement

A life insurance policy that provides a policy owner with cash value along with a level face amount is called:

whole life

All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death, EXCEPT:

Interest Only

D needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. what kind of policy is needed?

Level term

which type of policy is considered to be overfunded, as stated by IRS guidelines?

Modified Endowment Contract

which policy an agent requires to register with the National Association of Securities Dealers (NASD) before selling

Variable Life- because transfer of investment risk from the insurer to the policy owner.

Which of these Nonforfeiture Options continue a build-up of cash value?

Reduced Paid-Up

all of these are characteristics of an Adjustable Life policy,

adjustable premiums, adjustable premium payment period, combination of term and whole life insurance

How long does the coverage normally remain on a limited-pay life policy?

age 100

The automatic premium loan provision is designed to:

avoid a policy lapse

S would like to use dividends from her life insurance policy to purchase paid-up additions. All of these would be factors that determine how much coverage can be purchased EXCEPT

beneficiary's age

the investment gains from a Universal Life Policy usually go toward:

cash value

additional coverage can be added to a Whole Life policy by adding a:

decreasing term rider

conversion privilege

enables an individual to leave the group and continue his or her insurance without providing evidence of insurability

Variable Life products require a producer to

hold a Life Insurance licenses and a Securities license

Which of the following actions require a policy owner to provide proof of insurability in an Adjustable Life policy?

increase face amount

The Accidental Death and Dismemberment (AD&D) provision in a life insurance policy would pay additional benefits if the insured:

is blinded in an accident

Which of the following statements is CORRECT about the period in which a Term Policy can be converted?

it varies according to the contracts

Term Life

life insurance gives the greatest amount of coverage for a limited period of time

Variable Life Policy

offer the owner investment in products such as money-market funds, long term bonds and equities.

Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies?

policyowner

Term insurance has which of the following characteristics?

Expires at the end of the policy period

What type of policy would offer a 40-year old the quickest accumulation of cash value?

20-pay life

which statement is TRUE regarding a Variable Whole Life policy?

A minimum guaranteed Death benefit is provided

The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called a(n):

Accidental Death and Dismemberment rider (AD&D)

What action can a policy owner take if an application for a bank loan requires collateral?

Assign policy ownership to the bank

S is covered by a whole life policy. Which insurance product can cover his children?

Child term rider

a Family Income Policy is a combination of Whole Life and

Decreasing Term insurance

How are surrender charges deducted in a life policy with a rear-end loaded provision?

Deducted when the policy is discontinued

All of these insurance products require an agent to have proper FINRA securities registration in order to sell them, EXCEPT for:

Modified Whole Life

A young, married teacher has two children and owns a Whole Life policy. If the teacher wants an increasing Death Benefit to protect against inflation, the teacher should select which of the following Dividend Options?

Paid-Up Additional Insurance

Which of the following provisions guarantees that premiums will be waived if a Juvenile Life policy owner becomes disabled?

Payor clause

Which of the following types of policies BEST identifies one in which the cash value may fluctuate to reflect changing assumptions regarding mortality cost, interest, and expense factors?

Universal Life

Which of theses types of life insurance allows the policy owner to have level premiums and to also choose from a selection of investment options?

Variable Life

A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has what kind of rider attached?

Waiver of Premium

what kind of life insurance product covers children under their parent's policy?

a term rider

Additional coverage can be added to a Whole Life policy by adding a(n):

accelerated benefit rider

whole life policy

cash value may be borrowed against


Related study sets

AP Biology Unit 1 Test Study Guide

View Set

Chapter 29 HIS 102, Chapter 28 HIS 102

View Set

ECON 110 - Principles of Macroeconomics: Ultimate Review

View Set

Catcher In the Rye November 30, 2014

View Set

Intro to Networks Midterm Study (Module 1-3)

View Set

Fancy Food: Edible Plant Parts Mrs_Roach's Students are discovering-

View Set