Life insurance practice exam
What does the payor benefit rider protect?
premium payments for a juvenile policy
Which of the following allows an insurance company to deny coverage if the insureds death occurs during war?
Policy exclusions
An annuity is considered fixed when it does all of the following EXCEPT
Prodives the annuitant with an interest rate that is the lesser of the guaranteed or current rate
Betty is the only beneficiary named on her husband Bob's policy which has a Common Disaster provision. They are in a car wreck, and Bob dies instantly. Betty lives for 29 days. Who will receive the death benefit?
Bobs estate
Which of the following is not a non-forfeiture option in whole life policies?
Accumalation at interest
The "pay-in" phase of an annuity is known as what period?
Accumulation period
An annuity in which investment growth is dependent on the performance of an index such as the Standard and Poor's 500 is called a(n)
Equity Indexed Annuity
An insurance agent represents the
Insurer
Which type of annuity settlement stops when the annuitant dies
Life income annuity
What type of permenant insurance allows the policyowner to pay for a policy in a specified period of time, and the policy owner does not have to make any premium payments for the life of the policy?
Limited payment
Conditional Receipt
The producer issues a conditional receipt to the applicant when the application and premium are collected. There are two types of conditional receipts: insurability and approval.
An insurer mails an insurance policy to a new policyowner. When the insurer relinquishes control of the policy, the policy is considered
delivered
Two business partners own life insurance on each other. If one partner dies, which of the following contracts will allow the surviving partner to use the death benefit to purchase the deceased's business interest?
Buy-sell agreement
To prevent people from profiting from loss, insurers must be certain
Insurable interest exists
Which of the following retirement plans is a special tax favored plan for non- profit ,charitable, educational or religious groups?
403(b) tax sheltered annuity (TSAs)
What is the purpose of the grace period in the life insure policies?
To protect the policyowner against an unintentional lapse of the policy
Each of the following is a typical characteristic of group life insurance EXCEPT
Evidence of insurability is usually required
At age 25, an individual purchased a decreasing term policy. What happens to the coverage and the premiums as the insured gets older?
The coverage decreases and the premium stays the same
