Comprehensive Life Insurance and
Funeral Prearrangement Key
Concepts
Under a continuous premium whole life policy, premiums are payable every year to age: - CORRECT
ANSWER ✔✔✔ 100
When compared to a whole life policy with premiums payable for life for the same face amount, a
limited payment whole life policy will have: - CORRECT ANSWER ✔✔✔ A shorter premium-paying
period
Under a limited payment whole life policy, the guaranteed cash surrender value must equal the face
amount when: - CORRECT ANSWER ✔✔✔ The premium-paying period ends
Single premium whole life insurance provides: - CORRECT ANSWER ✔✔✔ Immediate lifetime
protection as a paid-up policy
Which type of whole life insurance always has cash surrender value when the policy first takes effect? -
CORRECT ANSWER ✔✔✔ Single premium
If the insurer's experience improves, the owner of an interest-sensitive whole life insurance policy may
be able to: - CORRECT ANSWER ✔✔✔ Pay lower premiums for the same benefits
What occurs when a deferred life insurance policy has remained in force for the specified vesting
period? - CORRECT ANSWER ✔✔✔ The nonforfeiture provision takes effect
Which type of insurance policy has a lower death benefit in the early years of the policy and a higher
death benefit later? - CORRECT ANSWER ✔✔✔ Modified whole life
If Chris names ABC Company to receive the death benefit from a life insurance policy on Lee's life, then:
- CORRECT ANSWER ✔✔✔ Chris is the owner and ABC Company is the beneficiary
The free look period is the limited period of time: - CORRECT ANSWER ✔✔✔ After the application and
before the delivery of the policy
The complete life insurance contract between the insurer and the policy owner usually consists of the
policy and the attached: - CORRECT ANSWER ✔✔✔ Application
Insurance companies generally cannot contest the validity of a life insurance contract after it has been in
force for: - CORRECT ANSWER ✔✔✔ 2 years
If an insured dies by suicide in the first two years of a life insurance policy, the insurer normally will pay:
- CORRECT ANSWER ✔✔✔ A refund of the total premiums paid
Some life insurance policies provide for an additional death benefit declaration to be made at the option
of the: - CORRECT ANSWER ✔✔✔ Policyowner
The intended beneficiary of the proceeds of a life insurance policy must be designated on the: -
CORRECT ANSWER ✔✔✔ Policy application
Funeral Prearrangement Key
Concepts
Under a continuous premium whole life policy, premiums are payable every year to age: - CORRECT
ANSWER ✔✔✔ 100
When compared to a whole life policy with premiums payable for life for the same face amount, a
limited payment whole life policy will have: - CORRECT ANSWER ✔✔✔ A shorter premium-paying
period
Under a limited payment whole life policy, the guaranteed cash surrender value must equal the face
amount when: - CORRECT ANSWER ✔✔✔ The premium-paying period ends
Single premium whole life insurance provides: - CORRECT ANSWER ✔✔✔ Immediate lifetime
protection as a paid-up policy
Which type of whole life insurance always has cash surrender value when the policy first takes effect? -
CORRECT ANSWER ✔✔✔ Single premium
If the insurer's experience improves, the owner of an interest-sensitive whole life insurance policy may
be able to: - CORRECT ANSWER ✔✔✔ Pay lower premiums for the same benefits
What occurs when a deferred life insurance policy has remained in force for the specified vesting
period? - CORRECT ANSWER ✔✔✔ The nonforfeiture provision takes effect
Which type of insurance policy has a lower death benefit in the early years of the policy and a higher
death benefit later? - CORRECT ANSWER ✔✔✔ Modified whole life
If Chris names ABC Company to receive the death benefit from a life insurance policy on Lee's life, then:
- CORRECT ANSWER ✔✔✔ Chris is the owner and ABC Company is the beneficiary
The free look period is the limited period of time: - CORRECT ANSWER ✔✔✔ After the application and
before the delivery of the policy
The complete life insurance contract between the insurer and the policy owner usually consists of the
policy and the attached: - CORRECT ANSWER ✔✔✔ Application
Insurance companies generally cannot contest the validity of a life insurance contract after it has been in
force for: - CORRECT ANSWER ✔✔✔ 2 years
If an insured dies by suicide in the first two years of a life insurance policy, the insurer normally will pay:
- CORRECT ANSWER ✔✔✔ A refund of the total premiums paid
Some life insurance policies provide for an additional death benefit declaration to be made at the option
of the: - CORRECT ANSWER ✔✔✔ Policyowner
The intended beneficiary of the proceeds of a life insurance policy must be designated on the: -
CORRECT ANSWER ✔✔✔ Policy application
