Life Insurance Basics

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How often must an insurer send an update to their policy owners on the illustrations that they use

Annually

A policy that doesn't pay dividends to policy owners is referred to as a

Non participating policy

What kind of policy issues certificates of insurance to the insured

Group insurance

A projection of insurance needs that is based on the capitalization of an applicant's future earnings is a

Human Life Approach

What's the major difference between a Stock Redemption plan and a cross purchase plan?

In a stock redemption plan the INDIVIDUAL owns the policies in a cross purchase plan the ENTITY own the policies

Ibrahima wants to buy a life insurance policy that will provide lifetime protection against premature death. What type of insurance policy should he buy

Permanent

Who's responsible for all advertising regardless of their source of creation?

The Insurer

Who must pay for the state license exam expenses

The Licensee

If an applicant for a Life Insurance policy submits the completed application without the first premium payment when will coverage become effective

When the agent delivers the policy and collects the required premium with the insureds good health statement

If the applicant for a Life Insurance policy submits the application without the first premium payment when will coverage become effective

When the agent delivers the policy collects the required premiums and had the insureds Good Health Statement

When must the Buyers Guide be proposed to the selected insured

At the time of application

What is the benefit of an insurer investing the money received from premiums paid by the insured?

The investment can be used to lower premiums

Tim applied for a life insurance policy. He included the payment for the first premium with the application. Which of the following statements is correct?

The policy will be in effect the date of application provided the company acknowledges the receipt of premium with a conditional receipt and that Tim is found insurable

An applicant for a $1,000,000 life insurance policy was required to undergo HIV testing before the policy could be approved. If the results were negative and no physician was designated, where would the results be released

They wouldn't need to be released

Why would someone purchase life insurance over annuities?

To create an estate (Annuities are better for retirement)

If the policy owner for a life insurance policy is different from the insured what should the underwriter be concerned about?

Whether insurable interest exists between the individuals


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