Life insurance- Basics. Ucanpass UPDATED ACTUAL Exam Questions and CORRECT Answers

Life insurance- Basics. Ucanpass UPDATED
ACTUAL Exam Questions and CORRECT
Answers
What does liquidity mean in a life insurance policy? - CORRECT ANSWER - Availability
of cash value


What are the personal uses of life insurance? - CORRECT ANSWER - Survivor
protection, estate creation and conservation, cash accumulation and liquidity


When must insurable interest exist in a life insurance policy? - CORRECT ANSWER - At
the time of application


What are illustrations in a life insurance policy? - CORRECT ANSWER - Presentations of
nonguaranteed elements of the policy


What type of repost provides information about the applicants hobbies, habits and financial
Status? - CORRECT ANSWER - Investigative consumer report



What is the purpose of key person insurance? - CORRECT ANSWER - To minimize the
risk of financial loss caused by the death of a key employee


What are the three main instances when insurable interest exists in life insurance? - CORRECT
ANSWER - 1. Insuring your own life, 2. the life of a family member, or the life of a
business partners or 3. someone who has a financial obligation to the policy-owner.


What type of life insurance offers an applicant a cash value element? - CORRECT
ANSWER - Permanent insurance (usually, whole life)


What document describes the specific information about a policy? - CORRECT
ANSWER - Policy summary