Text ExamFx Basic
Which of the following individuals must have insurable interest in the insured?
Policyowner
Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value?
Predicted needs of the family after the insured's death.
Which of the following will be included in a policy summary?
Premium amounts and surrender values
What must happen when an individual policy or annuity has been personally delivered to the policyowner?
The policyowner must sign a delivery receipt
What is the main purpose of the regulation on life insurance policy illustrations?
To help customers make educated decisions in buying life insurance
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
If an applicant for a life insurance policy and 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.
Which of the following premium modes would result in the highest annual cost for an insurance policy?
monthly Correct! If the policyowner chooses to pay the premium more frequently than annually, there will be an additional charge (loading) because the company will not have the premium to invest for a full year, and the company will have additional expenses in billing the premium.
All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT
A) The employer pays a bonus to a selected employee to fund the policy. B) It is considered a nonqualified employee benefit. C) The policy is owned by the company D) Any type of insurance policy may be used. D
All of the following are personal uses of life insurance EXCEPT
Buy-sell agreement. Correct! Personal uses of life insurance include survivor protection, estate creation and conservation, cash accumulation, and liquidity. A buy-sell agreement is for business uses of life insurance.
Question 4 of 15 All of the following are duties and responsibilities of producers at the time of application EXCEPT
Change any incorrect statement on the application by personally initialing next to the corrected statement.
When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is
Executive bonus.
An insured has a life insurance policy with a face amount of $500. He pays a premium each week to the agent who sold him the polic What kind of policy does the insured have?
Industrial life Correct! Industrial life insurance is written on an individual basis in small amounts, usually with a face amount of less than $2,000, with premium payable weekly or monthly. As a general rule, these policies are written nonmedically.
An underwriter may obtain information on an applicant's hobbies, financial status, and habits by ordering a(n)
Inspection report
In terms of Social Security, what is the name for the time period after the youngest child of a family turns 16 and before the surviving spouse may start receiving retirement benefits?
blackout period