Final Exam - Tennessee Life and Health Questions and Answers Already Graded A+

Final Exam - Tennessee Life and Health Questions and Answers Already Graded A+ Insurance policies are offered on a "take it or leave it" basis, which make them a. Conditional Contracts b. Aleatory Contracts c. Unilateral Contracts d. Contracts of Adhesion - Answer d. Contracts of Adhesion All of these statements about Equity Indexed Life Insurance are correct EXCEPT a. Cash value has a minimum rate of accumulation b. If the gain on the index goes beyond the policy's minimum rate of return, the cash value will mirror that of the index c. The premiums can be lowered or raised, based on investment performance d. Tied to an equity index such as the S&P 500 - Answer c. The premiums can be lowered or raised, based on investment performance P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability? a. P cannot borrow against the policy's cash value while disabled b. P will have to pay income taxes on the amount of premiums waived c. P will still receive declared dividends d. P cannot assign ownership of the policy while premiums are being waived - Answer c. P will still receive declared dividends Which of the following actions require a policyowner to provide proof of insurability in an Adjustable Life policy? a. increase face amount b. decrease face amount c. increase premium-paying period d. decrease premium payment - Answer a. increase face amount Which provision prevents an insurer from changing the terms of the contract with the policyowner by referring to documents not found within the policy itself? a. Policy Exclusion b. Incontestable c. Entire Contract Provision d. Assignment - Answer c. Entire Contract Provision K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary? a. Return of premiums paid b. Cash value plus interest c. $20,000 death benefit d. Face amount plus interest - Answer c. $20,000 death benefit