Life Insurance Review (Learn As You Go + Simulated Exam)

premiums based on sex

life expectancy of women is greater --> women's premium payments lower because they last longer

survivor protection

life insurance can provide the funds necessary for the survivors of the insured to be able to maintain their lifestyle in the event of the insured's death

the premium of a survivorship life policy compared with that of a joint life policy would be...

lower

what must happen when an individual policy or annuity has been personally delivered to the policyowner?

policyowner must sign a delivery receipt

annually renewable term policies

premiums are adjusted each year to insured's attained age (premium increases as insured gets older) least expensive first-year premium payment

apparent authority

"perceived authority"

max penalty for violating the Superintendent's cease and desist order

$10,000

decreasing term policies

- death benefit is $0 at end of term - contract pays only in even of death during term and there is no cash value - premium remains level - face amount steadily declines through duration of contract

straight life policies

- lowest annual premium of 3 types of whole life policies - face value of policy is paid to insured at age 100 - it usually develops cash value by end of 3rd policy year - charges level annual premium and provides a level, guaranteed death benefit

When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?

equal to the original policy for as long as the cash values will purchase

attending physician statement

used to obtain medical details about a specific condition which has shown up in application process

which of the following types of insurance policies would perform the function of cash accumulation?

whole life

are insurance company underwriters allowed to discriminate?

yes, but not unfairly