A.D. Banker Final Exam

Which of the following situations will require proof of insurability? - Answer- Adjusting the face amount up on a Universal Life insurance policy with Option A death benefit selected Sean has a home with an mortgage. He needs life insurance to protect his family but also wants to leave them without a mortgage payment if he dies. Ideally which of the following riders should he acquire? - Answer- Decreasing Term Rider What rider is designed to help the insured offset the effects of future inflation on the policy's face amount? - Answer- Cost of Living A good example of Risk Reduction might be: - Answer- When one takes action to minimize the severity of a potential loss In an insurance contract the value that each party gives the other is said to be the: - Answer- Consideration When an applicant does not smoke, exercises regularly, seldom drinks, and eats moderately and is considered to be an above-average risk, they would likely qualify for: - Answer- Preferred status and pay a lower premium A group plan is designed to insure all of the following, except: - Answer- Creditors Which of the following is included in Part II of a Life Insurance Application? - Answer- Family member's age and cause of death All of the following policies end when an insured dies, except: - Answer- Joint Survivorship Money accumulated in a permanent policy that the policyowner may borrow via a policy loan or receive if the policy is surrendered, refers to: - Answer- Cash Value The owner of a Variable Life Policy may allocate the premium into a sub-account which is owned by the insurer, this sub-account is a part of what is also known as the: - Answer- Separate Account Level, decreasing and increasing term refer to which policy feature? - Answer- Death Benefit All of the following are statements are true of a juvenile policy, except: - Answer- The insured is the premium payor