Life Insurance Basics Chapter Quiz
Which are following is usually true of a participating life insurance policy?
Pays dividends to the policyowner
An insurer wants to begin underwriting procedures for an applicant. What source will it consult for the majority of its underwriting information?
The Application
An underwriter is reviewing the medical question in the application and needs further information due to a medical situation the applicant had in the past. What will the underwriter require?
Attending Physician Statement
Which of the following is the best reason to purchase life insurance rather than annuities?
To create an estate
Which of the following statements NOT true concerning insurable interest as it applies to life insurance?
A debtor has an insurable interest in each other
What does liquidity refer to in a life insurance policy?
Cash values can be borrowed at any time. Liquidity in life insurance refers to availability of cash to the insured through cash values.
A corporation is the owner and beneficiary of the key person life insurance policy. If the corporation collects the policy benefit,then
The benefits is received tax free
Where would the underwriter find relevant information not presented by applicant but communicated by the producer?
application
Marketing practice regulations apply to all of the following EXCEPT
Company Memos
If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT
Erase the incorrect answer & record the correct answer
A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as
Survivor Protection
Which are the following statement concerning buy-sell agreements is true?
Buy-sell agreements pay in the event of medical emergency
If an insured changes his payment plan from monthly to annually, what happens to the total premium?
It will decrease
Which of the following statements is correct about a standard risk classification in the same age group and with similar lifestyles?
Standard Risk is representative of the majority of people
Which of following methods of calculating the amount of life insurance needed takes into account the insured's wages,years until retirement, and inflation?
Human Life Approach is determined by the loss of income that would result with death of the insured,after making adjustments for exoenses,inflation, etc
