Life Insurance And Annuities Exam Questions With Correct
Answers.
Immediate Estate - accurate answers-Upon the death of the insured, life
insurance policy proceeds are automatically paid to the insured's estate.
Immediate Premium Payment - accurate answers-Life insurance premiums
are due and payable immediately upon issuance.
Immediate Cash Value Access - accurate answers-The accumulated cash value
of a life insurance policy can be accessed immediately.
Immediate Death Benefit Payment - accurate answers-The full amount of the
life insurance policy's death benefit is paid upon the death of the insured.
Policy Loan Provision - accurate answers-The policyowner can borrow money
from the life insurance policy's cash value using the policy loan provision
while continuing to pay the premiums to maintain coverage.
Surrender for Cash - accurate answers-The policyowner can surrender the
current policy to access the cash value and use the proceeds to purchase a
new policy while keeping the same amount of life insurance protection.
Maturity of Policy - accurate answers-The insurance company does not have
an obligation to provide the cash value of the policy to the policyowner until
the policy reaches maturity to prevent policies from lapsing.
Participating Policy - accurate answers-A participating life insurance policy
entitles the policyowner to receive dividends, which are a share of the
insurance company's surplus.
Policy Illustration Acknowledgment - accurate answers-Both the applicant
and the agent must sign a statement acknowledging the provision of a life
insurance policy illustration.
Creditor Rights - accurate answers-If the beneficiary of a life insurance policy
is the child of the insured, creditors may have rights to the policy proceeds.
, Nonforfeiture Provision - accurate answers-A policy provision that protects
the insurer against possible adverse selection.
Variable Life Insurance - accurate answers-Variable life insurance allows the
insured to select the investment options for the assets supporting the policy's
cash value.
Waiver of Premium - accurate answers-If the insured becomes totally
disabled, the waiver of premium provision in a life insurance policy exempts
the insured from paying future premiums.
Family Policy - accurate answers-A life insurance policy covering two or more
individuals that terminates after paying benefits on the first to die.
Master Contract Parties - accurate answers-The insurer and the employer are
the parties involved in the master contract of a group life insurance policy.
Policy Premium Calculation - accurate answers-The calculation of life
insurance policy premiums takes into account factors such as insurer
expenses, investment return, and mortality cost.
Second-to-Die Policy - accurate answers-A life insurance policy that pays the
death benefit only when both insured individuals have died.
Juvenile Policy - accurate answers-A life insurance policy specifically designed
to cover the life of a child.
Renewable Term Policy - accurate answers-When a term life insurance policy
is renewable, the policyholder must pay an increased premium at each
renewal.
Funding Buy-Sell Agreement - accurate answers-One of the common personal
uses for life insurance is to provide funds for a buy-sell agreement.
Modified Endowment Contract Penalty Tax - accurate answers-Amounts
received from a modified endowment contract are subject to a penalty tax,
typically 10% or more.
Answers.
Immediate Estate - accurate answers-Upon the death of the insured, life
insurance policy proceeds are automatically paid to the insured's estate.
Immediate Premium Payment - accurate answers-Life insurance premiums
are due and payable immediately upon issuance.
Immediate Cash Value Access - accurate answers-The accumulated cash value
of a life insurance policy can be accessed immediately.
Immediate Death Benefit Payment - accurate answers-The full amount of the
life insurance policy's death benefit is paid upon the death of the insured.
Policy Loan Provision - accurate answers-The policyowner can borrow money
from the life insurance policy's cash value using the policy loan provision
while continuing to pay the premiums to maintain coverage.
Surrender for Cash - accurate answers-The policyowner can surrender the
current policy to access the cash value and use the proceeds to purchase a
new policy while keeping the same amount of life insurance protection.
Maturity of Policy - accurate answers-The insurance company does not have
an obligation to provide the cash value of the policy to the policyowner until
the policy reaches maturity to prevent policies from lapsing.
Participating Policy - accurate answers-A participating life insurance policy
entitles the policyowner to receive dividends, which are a share of the
insurance company's surplus.
Policy Illustration Acknowledgment - accurate answers-Both the applicant
and the agent must sign a statement acknowledging the provision of a life
insurance policy illustration.
Creditor Rights - accurate answers-If the beneficiary of a life insurance policy
is the child of the insured, creditors may have rights to the policy proceeds.
, Nonforfeiture Provision - accurate answers-A policy provision that protects
the insurer against possible adverse selection.
Variable Life Insurance - accurate answers-Variable life insurance allows the
insured to select the investment options for the assets supporting the policy's
cash value.
Waiver of Premium - accurate answers-If the insured becomes totally
disabled, the waiver of premium provision in a life insurance policy exempts
the insured from paying future premiums.
Family Policy - accurate answers-A life insurance policy covering two or more
individuals that terminates after paying benefits on the first to die.
Master Contract Parties - accurate answers-The insurer and the employer are
the parties involved in the master contract of a group life insurance policy.
Policy Premium Calculation - accurate answers-The calculation of life
insurance policy premiums takes into account factors such as insurer
expenses, investment return, and mortality cost.
Second-to-Die Policy - accurate answers-A life insurance policy that pays the
death benefit only when both insured individuals have died.
Juvenile Policy - accurate answers-A life insurance policy specifically designed
to cover the life of a child.
Renewable Term Policy - accurate answers-When a term life insurance policy
is renewable, the policyholder must pay an increased premium at each
renewal.
Funding Buy-Sell Agreement - accurate answers-One of the common personal
uses for life insurance is to provide funds for a buy-sell agreement.
Modified Endowment Contract Penalty Tax - accurate answers-Amounts
received from a modified endowment contract are subject to a penalty tax,
typically 10% or more.
