Chapter 3. Life Insurance Policies
The premium of a survivorship life policy compared with that of a join life policy would be
Lower
A domestic Insurer has just decided to change the investment policy of a separate account. After this change is filed with the Director, how soon will it become effective?
60 days
The death protection component of Universal Life Insurance is always
Annually Renewable Term
A universal life insurance policy is best described as a/an
Annually Renewable Term policy with a cash value account
Which of the following would be the beneficiary in credit life insurance?
Creditor
An individual has just borrowed 10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?
Decreasing Term
What type of premium do both Universal Life and Variable Universl Life policies have?
Flexible
When an employee terminates coverage under a group insurance policy, coverage continues in force
For 31 days
Which of the following is correct regarding credit life insurance?
It insures the life of a debtor
Which of the following statements about group life is correct?
The cost of coverage is based on the ratio of men and women in the group
An adjustable life policyowner can change which of the following policy features?
The coverage period
All of the following are characteristics of a group life insurance plan except
There is a requirement to prove insurability on the part of the participants
What is the purpose of establishing the target premium for a universal life policy?
To Keep the Policy in Force
Which of the following life insurance policies would be considered interest sensitive?
Universal Life
Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?
Universal Life
Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?
Universal Life - Option A
Which of the following is a key distinction between variable whole life and variable universal life products
Variable whole life has a guaranteed death benefit
Variable whole life insurance is based on what type of premium
level fixed
Which of the following is called a "second-to-die" policy?
survivorship life
The Initial amount of credit life Insurance may NOT exceed
the amount to be repaid under the contract
