Chapter 2 - Life Basics Life, Health, Annuities
Beneficiary
A business owner buys a life policy and his own life. He may be all of the following, EXCEPT:
S applies for a policy on herself and names her husband as the beneficiary
All of the following are examples of a third-party ownership, EXCEPT:
Contact wither her agent or the insurance company and make sure they have the correct information
An applicant for life insurance realizes several days later that she may have answered a question about a health issue incorrectly. She should do which of the following?
A copy of the illustration that matches he policy for which was approved
At the time of a life insurance policy delivery, a producer must provide which of the following?
Fair Credit Reporting Act
Information from a third party collected by the insurance company in the application for insurance and during underwriting of the policy may be subject to the jurisdiction of the:
Creates an immediate estate
Personal uses of life insurance may be said to do which of the following?
Needs analysis
When determining an appropriate amount of life insurance, a producer takes into consideration the existing mortgage and other debt, future education expenses for the client's children and continuing income for his surviving spouse. This approach is known as:
A single policy issued to a business to cover the lives of employees
Which of the following describes group life insurance?
The application is confidential communication between the agent and the insurer
Which of the following is not true about life insurance applications?
Gross premium is the total amount paid for the policy, net premium does not include the insurance company's cost of doing business, such as paying claims and other expenses, or the interest the company earns on invested policy reserves
Which of the following statements correctly describes the difference between gross premium and net premium?
Annual
Which of these modes would result in the insured paying the least annual outlay for life insurance?
The Producer
Who is required to sign a completed application?