Nevada Health and Life Insurance-Types of Insurance 100% Correct
Which of these life products is NOT considered interest-sensitive? Modified Whole Life
A(n) ______ Life policy offers the owner investment in products such as money-market funds,
long-term bonds and equities. Variable
Which policy requires an agent to register with the National Association of Securities Dealers
(NASD) before selling? Variable Life
Life insurance that covers an insured's whole life with level premiums paid over a limited time is
called: Limited Pay Life
What kind of life insurance product covers children under their parent's policy? Term
rider
All of these are characteristics of an Adjustable Life policy, EXCEPT: face amount can be
adjusted using policy dividends
Which statement is correct regarding the premium payment schedule for whole life policies?
Premiums are payable throughout the insured's lifetime/ coverage lasts until death of
the insured
,F needs life insurance that provides coverage for only a limited amount of time with a death
benefit that changes regularly according to a schedule. What kind of policy is needed?
Decreasing term policy
What kind of life policy either pays the face value upon the death of the insured or when the
insured reaches age 100? Whole Life
S owns a life insurance policy with cash values that fluctuate according to the underlying
investment performance of common stocks. Which of these policies does S own?
Variable Whole Life
If a 10-Year Term Life policy contains a Renewability provision, the policy will renew
without evidence of insurability
J is issued a Life Insurance policy with a death benefit of $100,000. She pays $600 per year in
premium for the first 5 years. The premium then increases to $900 per year in the sixth year,
and remains level thereafter. The policy's death benefit also remains at $100,000. Which type
of Life Insurance policy is this? Modified Premium Life
What type of life policy covers two lives and pays the face amount after the first one dies?
Joint Life Policy
Which statement is TRUE regarding a Variable Whole Life policy? A minimum guaranteed
Death benefit is provided
, The investment gains from a Universal Life Policy usually go toward: the cash value
K buys a policy where the premium stays fixed for the first 5 years. The premium then increases
in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind
of policy is this? Modified Whole Life
What type of life policy covers two people and pays upon the death of the last insured?
Survivorship
A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash
value at a faster rate in the early years of the policy. Which of these statements made by the
producer would be correct? 20-Pay Life accumulates cash value faster than Straight Life
What type of policy would offer a 40-year old the quickest accumulation of cash value?
20-pay life
K is looking to purchase Renewable Term insurance. Which of these types of Term insurance
may be renewable? Level
An architecture firm would stand to lose a lot of money in the event of the death of its project
manager. Which type of policy should the firm purchase on its project manager? Key
Person insurance
Which of these life products is NOT considered interest-sensitive? Modified Whole Life
A(n) ______ Life policy offers the owner investment in products such as money-market funds,
long-term bonds and equities. Variable
Which policy requires an agent to register with the National Association of Securities Dealers
(NASD) before selling? Variable Life
Life insurance that covers an insured's whole life with level premiums paid over a limited time is
called: Limited Pay Life
What kind of life insurance product covers children under their parent's policy? Term
rider
All of these are characteristics of an Adjustable Life policy, EXCEPT: face amount can be
adjusted using policy dividends
Which statement is correct regarding the premium payment schedule for whole life policies?
Premiums are payable throughout the insured's lifetime/ coverage lasts until death of
the insured
,F needs life insurance that provides coverage for only a limited amount of time with a death
benefit that changes regularly according to a schedule. What kind of policy is needed?
Decreasing term policy
What kind of life policy either pays the face value upon the death of the insured or when the
insured reaches age 100? Whole Life
S owns a life insurance policy with cash values that fluctuate according to the underlying
investment performance of common stocks. Which of these policies does S own?
Variable Whole Life
If a 10-Year Term Life policy contains a Renewability provision, the policy will renew
without evidence of insurability
J is issued a Life Insurance policy with a death benefit of $100,000. She pays $600 per year in
premium for the first 5 years. The premium then increases to $900 per year in the sixth year,
and remains level thereafter. The policy's death benefit also remains at $100,000. Which type
of Life Insurance policy is this? Modified Premium Life
What type of life policy covers two lives and pays the face amount after the first one dies?
Joint Life Policy
Which statement is TRUE regarding a Variable Whole Life policy? A minimum guaranteed
Death benefit is provided
, The investment gains from a Universal Life Policy usually go toward: the cash value
K buys a policy where the premium stays fixed for the first 5 years. The premium then increases
in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind
of policy is this? Modified Whole Life
What type of life policy covers two people and pays upon the death of the last insured?
Survivorship
A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash
value at a faster rate in the early years of the policy. Which of these statements made by the
producer would be correct? 20-Pay Life accumulates cash value faster than Straight Life
What type of policy would offer a 40-year old the quickest accumulation of cash value?
20-pay life
K is looking to purchase Renewable Term insurance. Which of these types of Term insurance
may be renewable? Level
An architecture firm would stand to lose a lot of money in the event of the death of its project
manager. Which type of policy should the firm purchase on its project manager? Key
Person insurance
