1. Which of these needs is satisfied by Adjustable Life insurance?: insured's need for
flexible premiums
2. K is shopping for a permanent life insurance policy that will offer her the most
protection per dollar of annual premium. Which of these policies best fits her needs?:
Straight life
3. What type of policy has a death benefit that adjusts periodically and is written
for a specific period of time?: decreasing term
4. 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
5. Which provision allows the policyowner to change a term life policy to a
permanent one without providing proof of good health?: conversion
6. 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
$20,000 death benefit
7. A policy that becomes a Modified Endowment Contract (MEC):: will lose many of
its tax advantages
8. When is the face amount paid under a Joint Life and Survivor policy?: upon death of
the last insured
9. Which of these statements describe a Modified Endowlment Center?: Ex- ceeds the
maximum amount of premium that can be paid into a policy and still have it recognized as
a life insurance contract
10. S is close to retiring and would like to purchase a policy that will yield greater
gains than bonds, but will still protect the principal with a minimum level of risk.
Which product would S be advisesd to purchase?: Equity index insurance
11. All of these statements about Equity Indexed Life Insurance are correct, except:: the
premiums can be lowered or raised, based on investment performance
12. Under a Renewable Term policy,: the renewal premium is calculated on the basis of
the insured's attained age
13. What type of life policy covers two people and pays upon the death of the last
insured?: Survivorship
14. Which of these is an element of a Variable Life policy?: a fixed, level premium
15. D needs life insurance that provides coverage for only a limited amount of time
while also paying the lowest possible premium. What kind of policy is needed?: Level
term
,16. A Universal Life policy is sometimes referred to as an unbundled Life Policy
because the owner can see the interest earned, expense charges, and the: expense
charges
17. Term insurance has which of the following characteristics?: expires at the end of the
policy period
18. When a policyowner exchanges a term policy for a whole life policy without providing
proof of good health, which of these apply?: Conversion provision
19. A Life policy offers the owner investment in products such as
money-market funds, long-term bonds and eequities.: Variable
20. Which statement is true regarding a Variable Whole Life policy?: a minimum
guaranteed Death benefit is provided
21. Which of the following actions is not possible with a Universal Life policy?-
: premiums may be applied as a credit against income tax
22. A company that owns a life insurance policy on one of its key employees may do all
the following except:: change the policy's interest rate
23. Additional coverage can be added to a Whole Life policy by adding a:: de- creasing
term rider
24. P is looking to purchase a life insurance policy that will pay a stated monthly
income to his beneficiaries to 20 years after he dies and a lump sum of $20,000 at the
end of that 20 year period. What type of policy should P purchase?: Family Maintenance
policy
25. A life insurance policy that provides a policyowner with cash value along with a
level face amount is called:: Whole life
26. What does a Face Amount Plus Cash Value Policy pay upon the insured's death?:
Face amount plus the policy's cash value
27. A Life policy combines investment choices with a
form of Term coverage: Variable Universe
28. Which of the following combination plans is designed to protect an insured from an
unpaid mortgage balance upon premature death?: Joint Life
29. Q would like to purchase $100,000 of permanent protection on his wife and
$50,000 of Term coverage on himself under the same policy. What kind of policy should
Q purchase?: A Whole life policy with other insured rider
30. A father who dies within 3 years after purchasing a life insurance policy on his
infant daughter can have the policy premiums waived under which provision?: Payor
provision
31. What kind of life insurance product covers children under their parent's policy?: A
Term rider
, 32. What kind of premium does a Whole Life policy have?: level
flexible premiums
2. K is shopping for a permanent life insurance policy that will offer her the most
protection per dollar of annual premium. Which of these policies best fits her needs?:
Straight life
3. What type of policy has a death benefit that adjusts periodically and is written
for a specific period of time?: decreasing term
4. 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
5. Which provision allows the policyowner to change a term life policy to a
permanent one without providing proof of good health?: conversion
6. 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
$20,000 death benefit
7. A policy that becomes a Modified Endowment Contract (MEC):: will lose many of
its tax advantages
8. When is the face amount paid under a Joint Life and Survivor policy?: upon death of
the last insured
9. Which of these statements describe a Modified Endowlment Center?: Ex- ceeds the
maximum amount of premium that can be paid into a policy and still have it recognized as
a life insurance contract
10. S is close to retiring and would like to purchase a policy that will yield greater
gains than bonds, but will still protect the principal with a minimum level of risk.
Which product would S be advisesd to purchase?: Equity index insurance
11. All of these statements about Equity Indexed Life Insurance are correct, except:: the
premiums can be lowered or raised, based on investment performance
12. Under a Renewable Term policy,: the renewal premium is calculated on the basis of
the insured's attained age
13. What type of life policy covers two people and pays upon the death of the last
insured?: Survivorship
14. Which of these is an element of a Variable Life policy?: a fixed, level premium
15. D needs life insurance that provides coverage for only a limited amount of time
while also paying the lowest possible premium. What kind of policy is needed?: Level
term
,16. A Universal Life policy is sometimes referred to as an unbundled Life Policy
because the owner can see the interest earned, expense charges, and the: expense
charges
17. Term insurance has which of the following characteristics?: expires at the end of the
policy period
18. When a policyowner exchanges a term policy for a whole life policy without providing
proof of good health, which of these apply?: Conversion provision
19. A Life policy offers the owner investment in products such as
money-market funds, long-term bonds and eequities.: Variable
20. Which statement is true regarding a Variable Whole Life policy?: a minimum
guaranteed Death benefit is provided
21. Which of the following actions is not possible with a Universal Life policy?-
: premiums may be applied as a credit against income tax
22. A company that owns a life insurance policy on one of its key employees may do all
the following except:: change the policy's interest rate
23. Additional coverage can be added to a Whole Life policy by adding a:: de- creasing
term rider
24. P is looking to purchase a life insurance policy that will pay a stated monthly
income to his beneficiaries to 20 years after he dies and a lump sum of $20,000 at the
end of that 20 year period. What type of policy should P purchase?: Family Maintenance
policy
25. A life insurance policy that provides a policyowner with cash value along with a
level face amount is called:: Whole life
26. What does a Face Amount Plus Cash Value Policy pay upon the insured's death?:
Face amount plus the policy's cash value
27. A Life policy combines investment choices with a
form of Term coverage: Variable Universe
28. Which of the following combination plans is designed to protect an insured from an
unpaid mortgage balance upon premature death?: Joint Life
29. Q would like to purchase $100,000 of permanent protection on his wife and
$50,000 of Term coverage on himself under the same policy. What kind of policy should
Q purchase?: A Whole life policy with other insured rider
30. A father who dies within 3 years after purchasing a life insurance policy on his
infant daughter can have the policy premiums waived under which provision?: Payor
provision
31. What kind of life insurance product covers children under their parent's policy?: A
Term rider
, 32. What kind of premium does a Whole Life policy have?: level
