Iowa Life Insurance Exam Questions and Answers Already Passed

Iowa Life Insurance Exam Questions and Answers Already Passed purpose of life insurance pay a death benefit to beneficiaries when the insured dies life insurance for personal use death benefit serves to replace the insured's future loss income and pay expenses that occur upon death, living benefits Group insurance vs. individual -covers many non-related people -less expensive per person group insurance eligibility -group cannot be formed for the express purpose of purchasing it -employers -labor unions -trade and professional association groups individual insurance covers one individual ordinary life insurance face amounts grater than $25,000, premiums are payable monthly, quarterly, semi annually, annually; includes every type of life insurance and annuity product, flexible options industrial life insurance "burial insurance", small face amounts 1000 or 2500 to 10,000; premiums paid frequently, no medical exam, agent meets personally with policy owner to collect premium permanent life insurance provides life ins for the insured's entire life; coverage is provided until insured dies or reaches 120 years old True or false: Level premium of permanent life insurance - once the policy is issued premiums remain level for the full duration of policy coverage true Permanent life insurance accumulation element within the policy is __________ ____________ cash value Term life insurance coverage is temporary, time limit can be as short as one year, as long as 20+ years or until the insured reaches a specific age (ex. 65). No cash value, costs less than permanent life, premiums increase with age Participating vs nonparticipating life insurance par - issued by mutual ins co's, policyowner is eligible for policy dividends declared by the insurance co; dividends are paid from insurers divisible surplus non par - issued by stock ins co, no policy dividends fixed life insurance insurer guarantees fixed death benefit and min rate of return on policy's cash value, premiums are invested in co's general account variable life insurance premiums are invested in investment sub accounts managed by the insurer - guarantees min death benefit (face amount of policy); cash values and death benefit raise and fall based on sub accounts investment Regulation of Variable products - what do the Securities Exchange commission and financial Industry Regulatory authority do? SEC - responsible for regulating the securities that make up an insurer's separate account FIRA - regulates producers who sell variable life products a