Arizona Life Insurance Exam - Life Insurance Basics-with
solutions
Beneficiary |- |correct |answer |-A |person |who |receives |the |benefits |of |an |insurance |policy
Death |Benefit |- |correct |answer |-The |amount |paid |upon |the |death |of |the |insured |in |a |life |insurance
|policy
Cash |Value |- |correct |answer |-Equity |amount |accumulated |in |permanent |life |insurance
Estate |- |correct |answer |-A |person's |net |worth
Illustrations |- |correct |answer |-Presentation |or |depiction |of |nonguaranteed |elements |of |a |life
|insurance |policy
Life |Insurance |- |correct |answer |-Coverage |on |human |lives
Liquidation |- |correct |answer |-Selling |assets |in |order |to |raise |capital |(such |as |using |cash |value |for
|capital |needs)
Lump-Sum |- |correct |answer |-Payment |of |the |entire |benefit |in |one |sum
Minor |- |correct |answer |-A |person |under |legal |age
Solvency |- |correct |answer |-The |ability |to |meet |financial |obligations |(an |insurance |company
|maintains |enough |assets |to |pay |claims)
Survivor |Protection |- |correct |answer |-Life |insurance |can |provide |the |funds |necessary |for |the
|survivors |of |the |insured |to |be |able |to |maintain |their |lifestyle |in |the |event |of |the |insured's |death
|and |this |is |called |________________
, Estate |Conservation |- |correct |answer |-Life |insurance |proceeds |may |be |used |to |pay |inheritance |taxes
|and |federal |estate |taxes |so |that |it |is |not |necessary |for |the |beneficiaries |to |sell |off |the |assets |which
|is |___________________
Estate |Creation |- |correct |answer |-The |insured |will |have |an |estate |worth |the |amount |of |the |life
|policy |upon |the |first |paid |premium |which |is |______________
Viatical |Settlements |- |correct |answer |-____________________ |allows |someone |living |with |a |life-
threatening |condition |to |sell |their |existing |life |insurance |policy |and |use |the |proceeds |when |they
|are |most |needed, |before |their |death
Viator |- |correct |answer |-The |insured |selling |their |life |insurance |in |a |viatical |settlement
Viatical |Settlement |Provider |- |correct |answer |-A |person, |other |than |a |viator, |that |enters |into |a
|viatical |settlement |contract |(the |person |buying |the |life |insurance |policy)
Viatical |Producer |- |correct |answer |-A |person |who |represents |the |viatical |settlement |provider
Viatical |Broker |- |correct |answer |-A |person |who |represents |the |viator
Life |Settlement |- |correct |answer |-Any |financial |transaction |in |which |the |owner |of |a |life |insurance
|policy |sells |a |policy |that |is |no |longer |needed |to |a |third |party |for |some |form |of |compensation,
|usually |cash
Uses |of |Life |Insurance |- |correct |answer |-1. |Survivor |Protection
2. |Estate |Creation |and |Conservation
3. |Liquidity |and |Cash |Accumulation
4. |Viatical |Settlements |and |Life |Settlements
Human |Life |Value |Approach |- |correct |answer |-This |approach |gives |the |insured |an |estimate |of |what
|would |be |lost |to |the |family |in |the |event |of |the |premature |death |of |the |insured. |It |calculates |an
solutions
Beneficiary |- |correct |answer |-A |person |who |receives |the |benefits |of |an |insurance |policy
Death |Benefit |- |correct |answer |-The |amount |paid |upon |the |death |of |the |insured |in |a |life |insurance
|policy
Cash |Value |- |correct |answer |-Equity |amount |accumulated |in |permanent |life |insurance
Estate |- |correct |answer |-A |person's |net |worth
Illustrations |- |correct |answer |-Presentation |or |depiction |of |nonguaranteed |elements |of |a |life
|insurance |policy
Life |Insurance |- |correct |answer |-Coverage |on |human |lives
Liquidation |- |correct |answer |-Selling |assets |in |order |to |raise |capital |(such |as |using |cash |value |for
|capital |needs)
Lump-Sum |- |correct |answer |-Payment |of |the |entire |benefit |in |one |sum
Minor |- |correct |answer |-A |person |under |legal |age
Solvency |- |correct |answer |-The |ability |to |meet |financial |obligations |(an |insurance |company
|maintains |enough |assets |to |pay |claims)
Survivor |Protection |- |correct |answer |-Life |insurance |can |provide |the |funds |necessary |for |the
|survivors |of |the |insured |to |be |able |to |maintain |their |lifestyle |in |the |event |of |the |insured's |death
|and |this |is |called |________________
, Estate |Conservation |- |correct |answer |-Life |insurance |proceeds |may |be |used |to |pay |inheritance |taxes
|and |federal |estate |taxes |so |that |it |is |not |necessary |for |the |beneficiaries |to |sell |off |the |assets |which
|is |___________________
Estate |Creation |- |correct |answer |-The |insured |will |have |an |estate |worth |the |amount |of |the |life
|policy |upon |the |first |paid |premium |which |is |______________
Viatical |Settlements |- |correct |answer |-____________________ |allows |someone |living |with |a |life-
threatening |condition |to |sell |their |existing |life |insurance |policy |and |use |the |proceeds |when |they
|are |most |needed, |before |their |death
Viator |- |correct |answer |-The |insured |selling |their |life |insurance |in |a |viatical |settlement
Viatical |Settlement |Provider |- |correct |answer |-A |person, |other |than |a |viator, |that |enters |into |a
|viatical |settlement |contract |(the |person |buying |the |life |insurance |policy)
Viatical |Producer |- |correct |answer |-A |person |who |represents |the |viatical |settlement |provider
Viatical |Broker |- |correct |answer |-A |person |who |represents |the |viator
Life |Settlement |- |correct |answer |-Any |financial |transaction |in |which |the |owner |of |a |life |insurance
|policy |sells |a |policy |that |is |no |longer |needed |to |a |third |party |for |some |form |of |compensation,
|usually |cash
Uses |of |Life |Insurance |- |correct |answer |-1. |Survivor |Protection
2. |Estate |Creation |and |Conservation
3. |Liquidity |and |Cash |Accumulation
4. |Viatical |Settlements |and |Life |Settlements
Human |Life |Value |Approach |- |correct |answer |-This |approach |gives |the |insured |an |estimate |of |what
|would |be |lost |to |the |family |in |the |event |of |the |premature |death |of |the |insured. |It |calculates |an
