life insurance basics quiz

Ace your homework & exams now with Quizwiz!

which of the following terms means a result of calculating based don the average number of months the insured is projected to live due to medical history and mortality factors

life expectancy

which of the following terms means a result of calculations based on the average number of months the insured is projected to live due to medical history and mortality factors

life expectancy

which of the following best describes gross annual premium

net premium plus expenses

an insured purchased an individual life insurance policy with the face amount of 15k he pays premium each month

ordinary life

which of the following is usually true of participating life insurance policy

pays dividends to policyowners

an applicant wants to buy a policy that has cash value element which type should she buy

permanent

if someone wants to buy a life insurance policy that will provide lifetime protection against premature death what type of life insurance policy should that person buy

permanent

which of the following individuals must have insurable interests in the insured

policyowner

based on human life value approach which of the following is not used to calculate an individual life value

predicts needs of the family after the insureds death

all of the following are characteristics of group life insurance except

premiums are determined by age sex and occupation

which of the following is an example of liquidity in a life insurance contract

the cash value available to the policyowner

in a life settlement contract whom does the life settlement broker represent

the owner

how must a replacing producer respond to an applicant wishing to replace existing life insurance

the producer must provide the applicant with a notice regarding replacement

which of the following is not true of life settlement

the seller must be terminally ill

which of the following is the best reason to purchase life insurance rather than aannuities

to create an estate

why should the producer personally deliver the policy when the first premium has already been paid

to help the insured understand all aspects of the contract

what is the purpose of key person insurance

to lessen the risk of financial loss because of the death of a key employee

which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds

vacation travel expenses

an insured receives a monthly summary for his life insurance policy he notices that the cash value of the policy is significantly lower this month than last month

variable

an agent and an applicant for a life insurance policy fill out and sign the application however the applicant does not wish to give the agent the intitial premium and no conditional receipt is issued when will coverage begin

when the agent delivers the policy collects the initial premium and the applicant completes an acceptable statement of good health

if an applicant for a life insurance policyand person to be insured by the policy are two different people the underwriter would be concerned about

whether an insurable interest exists between the individuals

an investor buys a life policy on an elderly person in order to sell it for a life settlement this is an example of

a STOLI

full premium was submitted with the application and the policy was issued two weeks later as requested. when does coverage begin

as of the application date

which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision making process

buyers guide

if an insurance changes his payment plan from monthly to annuallywhat happens to the total premium

decreases

an insured has a life insurance policy with the face amount of $500 he pays a premium each weekto the agent who sold him the policy. what kind of policy does the insured have

industrial life

who makes up the medical information bureau

insurers


Related study sets

Special Topics: Human Resources test 1 (ch 1-5)

View Set

HIM 403 Healthcare Stats & Research Unit 9

View Set

KARCH Chapter: Chapter 51: Diuretic Agents PREP U

View Set