Business And FinanceChapter 3 Quiz Questions example #82017
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Chapter 3 Quiz Questions example #82017

Winonah Garcia avatar Winonah Garcia
6 January 2024
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34 test answers

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question
What is an example of limited-pay life policy?
answer
Life Paid-up at age 65
question
What statement about group life is correct?
answer
The cost of coverage is based on the ratio of men and women in the group.
question
All of the following entities regulate variable life policies:
answer
Federal Gov, SEC, the Ins. Dept., NOT the Guaranty Association
question
All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?
answer
Lower
question
Which Universal Life option has a gradually increasing cash value and a level death benefit?
answer
Option A (graph) b/c death benefit stays same for a while
question
All other factors being equal, the least expensive first-year premium payment is found in:
answer
Annually Renewable term.
question
What part of indexed whole life policy is NOT fixed?
answer
cash value growth because it depends on the market.
question
Which is classified as a traditional level premium contract?
answer
Straight Life
question
Concerning Juvenile Life insurance:
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JL is written on the life of a minor, limited premium payment policy, parent is the applicant for the insurance. its NOT purchased by a minor.
question
15 sky divers wanted cheaper life insurance so they got together. They applied and were rejected for group life. Why?
answer
The purpose of the group was to purchase life insurance.
question
to sell variable life ins. policies, an agent must receive:
answer
securities license, life ins. license, FINRA registration, NOT SEC registration
question
Which option allows beneficiary to get death benefit and cash value on death of insured?
answer
Option B (graph)
question
When employee terminates coverage under the group, coverage continues in force until:
answer
31 days
question
Which would have an IRS required gap between cash value and death benefit?
answer
Universal Life Option A
question
Which type of insurance policy generates immediate cash value?
answer
Single Premium Whole Life
question
Which aren't considered when underwriting group insurance?
answer
insured's medical history (no need for proving insurable interest)
question
In group life insurance policy, the employer may not select:
answer
The beneficiary; the employees must be allowed to do that.
question
When an insured renews a term 5 years after?...
answer
Premium goes up because he is older and needs to renew
question
What is false regarding credit life ins.?
answer
Benefits are paid to the borrower's beneficiary
question
In survivor-ship life policy when does the insurer pay the death benefit?
answer
Upon the last death
question
a man decided to buy 100k annually renewable term policy to provide for his children until they graduate. He discovered that his policy:
answer
Required a premium increase each renewal
question
Which best describes annually renewable term life ins?
answer
it is level term ins.
question
Which employees under a group plan are allowed to convert to individual ins?
answer
Those who have been insured by the group plan for over 5 years.
question
When would a 20-pay whole life policy endow?
answer
at age 100
question
Who is the beneficiary in credit life ins?
answer
creditor
question
A return of premium term life policy is written as what type of coverage?
answer
Increasing
question
In adjustable life policy you cannot:
answer
change the type of investment as the policy owner.
question
All are correct regarding credit life ins. except:
answer
that benefits are paid to the borrower's beneficiary
question
Which statement is not true regarding a straight life policy?
answer
Its premium steadily decreases over time, in response to its growing cash value.
question
Which is not true regarding a decreasing term policy?
answer
the payable premium amount steadily declines throughout the duration of the contract.
question
Credit Life Ins:
answer
insurers the life of the debtor
question
If a life policy increases a lot in face amount or death benefit when insured reaches a specific age, which policy is it?
answer
jumping juvenile policy
question
Which is correct regarding group life statements?
answer
the cost of coverage is based on the ratio of men and women in the group.
question
Which is true regarding the ins. amount in a credit life policy?
answer
Creditor can only insure the debtor for the amount owed.