Types of Life Policies (ucanpass)(examfx)
UPDATED ACTUAL Exam Questions and
CORRECT Answers
What policy component must decrease in decreasing term insurance? - CORRECT
ANSWER - Face Amount
What type of policy is typically issued without proof of insurability from the insured? -
CORRECT ANSWER - Group policy
What are the death benefit options is universal life policies? - CORRECT ANSWER -
Option A- level death benefit, Option B- increasing death benefit
Why are policy loans not available on term insurance? - CORRECT ANSWER - There is
no cash value to borrow against
Under Option B in a universal life policy, what happens to the death benefit? - CORRECT
ANSWER - The death benefit increases eachyear by the amount of cash value increases
What type of whole life insurance policies only requires a payment of premium at its inception,
and in addition to providing insurance protection for the life of the insured, endows at the
insured's age 100? - CORRECT ANSWER - Single premium whole life
What is the purpose of establishing the target premium for a universal life policy? - CORRECT
ANSWER - To prevent the policy from lapsing
When the amount of insurance is increased in an adjustable life policy, what will the insurer
require from the insured? - CORRECT ANSWER - Evidence of insurability
what type of life insurance is best suited to cover a mortgage? - CORRECT ANSWER -
Decreasing term
, In term policies, what happens to the premium throughout the term of the policy? - CORRECT
ANSWER - The premium remains level
What type of policy issues certificates of insurance to the insureds? - CORRECT
ANSWER - Group policy
What are the characteristics of the group that underwriters will consider before issuing a group
life policy? - CORRECT ANSWER - Groups purpose, size, financial strength and turnover
What is the main advantage of converting from group life insurance to individual coverage? -
CORRECT ANSWER - Evidence of insurability is not required
When would a 20 pay whole life policy endow? - CORRECT ANSWER - When the
insured reaches age 100
Who is entitled to the cash values in a life insurance policy? - CORRECT ANSWER - the
policyowner
if an insured terminates membership in group life insurance, to what type of insurance can the
insured covert the coverage? - CORRECT ANSWER - Whole life
who owns a group life insurance contract? - CORRECT ANSWER - The employer (also
known as the sponsor of the group)
An insured receives a monthly summary for his life insurance policy. He notices that the cash
value of the policy is significantly lower this month than it was last month. What type of policy
does the insured have? - CORRECT ANSWER - Variable
Who is insured under a juvenile life policy? - CORRECT ANSWER - minor
UPDATED ACTUAL Exam Questions and
CORRECT Answers
What policy component must decrease in decreasing term insurance? - CORRECT
ANSWER - Face Amount
What type of policy is typically issued without proof of insurability from the insured? -
CORRECT ANSWER - Group policy
What are the death benefit options is universal life policies? - CORRECT ANSWER -
Option A- level death benefit, Option B- increasing death benefit
Why are policy loans not available on term insurance? - CORRECT ANSWER - There is
no cash value to borrow against
Under Option B in a universal life policy, what happens to the death benefit? - CORRECT
ANSWER - The death benefit increases eachyear by the amount of cash value increases
What type of whole life insurance policies only requires a payment of premium at its inception,
and in addition to providing insurance protection for the life of the insured, endows at the
insured's age 100? - CORRECT ANSWER - Single premium whole life
What is the purpose of establishing the target premium for a universal life policy? - CORRECT
ANSWER - To prevent the policy from lapsing
When the amount of insurance is increased in an adjustable life policy, what will the insurer
require from the insured? - CORRECT ANSWER - Evidence of insurability
what type of life insurance is best suited to cover a mortgage? - CORRECT ANSWER -
Decreasing term
, In term policies, what happens to the premium throughout the term of the policy? - CORRECT
ANSWER - The premium remains level
What type of policy issues certificates of insurance to the insureds? - CORRECT
ANSWER - Group policy
What are the characteristics of the group that underwriters will consider before issuing a group
life policy? - CORRECT ANSWER - Groups purpose, size, financial strength and turnover
What is the main advantage of converting from group life insurance to individual coverage? -
CORRECT ANSWER - Evidence of insurability is not required
When would a 20 pay whole life policy endow? - CORRECT ANSWER - When the
insured reaches age 100
Who is entitled to the cash values in a life insurance policy? - CORRECT ANSWER - the
policyowner
if an insured terminates membership in group life insurance, to what type of insurance can the
insured covert the coverage? - CORRECT ANSWER - Whole life
who owns a group life insurance contract? - CORRECT ANSWER - The employer (also
known as the sponsor of the group)
An insured receives a monthly summary for his life insurance policy. He notices that the cash
value of the policy is significantly lower this month than it was last month. What type of policy
does the insured have? - CORRECT ANSWER - Variable
Who is insured under a juvenile life policy? - CORRECT ANSWER - minor
