Exam FX #2 life insurance basics

which of the following premium modes would result in the highest annual cost for an insurance company monthly quarterly semi-annual annual

Monthly

Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement? term permanent whole life universal who life any whole life

any form of life insurance

which of the following would describe a legal document which would dictate who can buy a deceased partners share of a business and for what amount? profit and loss agreement key person agreement split dollar agreement buy-sell agreement

buy-sell agreement

If an insured changes his payment plan from monthly to annually, what happens to the total premium? doubles increases decreases stays the same

decreases

a producer agent must do all of the following except when deliverying a new policy explain the policy provisions... collect any premium due explain the rating procedure if the policy is rated differently than applied for disclose commissions made

disclose commissions made

3 types of risk for underwriters

standard substandard preferred

Medical Information Bureau (MIB) was created to protect

Insurance companies from adverse selection by high risk persons

A prospective insured recieves a conditional reciept but dies before the policy is issued. The insurer will

Pay the policy proceeds only if it would have issued the policy

partners in a buy-sell agreement what type of life insurance so they can buy when one of them dies?

any type of life insurance

An insurer wants to obtain information from investigators regarding an applicant for insurance. What must the insurer do in order to legally acquire this information?

present the insured with a disclosure authorization notice

A risk classification used by underwriters normal excellent standard poor

standard

Who is the owner and who is the beneficiary on a Key Person Life Insurance Policy?

the employer is the owner and beneficiary

what must happen when an individual policy or annuity has been personally deliverd to the policyowner>

the policyowner must sign a delivery receipt

The term "illustration" in a life insurance policy refers to charts and graphs pictures of accompanying a policy a depcition of policy benefits and gaurantees a presentation of guaranteed elements of a policy

a presentation of guaranteed elements of a policy

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. when does the policy coverage become effective? as of the application date as of the policy delivery date as of the first of the month after the policy issue the policy issue date

as of the application date

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective? as of the first of the month after the policy issue as of the policy issue date as of the application date as of the policy delivery date

as of the application date

all of the following are factors that an underwriter could use to select and classify risk except occupation avocation national origin morals

national origin