Chapter 12: Life Insurance
Questions with Accurate Answers
annuity correct answer A contract that provides a regular income typically for as
long as the person lives.
beneficiary correct answer A person designated to receive something, such as life
insurance proceeds, from the insured.
cash value correct answer The amount received after giving up a life insurance
policy.
chartered life underwriter ( CLU) correct answer A life insurance agent who has
passed a series of college-level examinations on insurance and related subjects.
double indemnity correct answer A benefit under which the company pays twice
value of the policy if the insured's death results from an accident.
How can the Internet help you create a life insurance plan? correct answer You
can visit www.naic.org to determine what/if you need life insurance, and get the
most for your money when buying it.
How do insurance companies determine your insurability? correct answer You fill
out an application, and from your answers, insurance companies can determine
how much to insure you
, How do insurance companies price their products? correct answer Insurance
companies price their products by finding a way to make their policies seem more
attractive and appealing, then they calculate the cost of time.
How do you determine the need for life insurance? correct answer how much
money do you leave for your dependents
incontestability clause correct answer A provision stating that the insurer cannot
dispute the validity of a policy after a specified period.
interest-adjusted index correct answer A method of evaluating the cost of life
insurance by taking into account the time value of money.
non forfeiture clause correct answer A provision that allows the insured not to
forfeit all accrued bene
nonparticipating policies correct answer Life insurance that does not provide
policy dividends; also called non par policy
participating policy correct answer Life insurance that provides policy dividends;
also called par policy
rider correct answer A document attached to a policy that modifies each
coverage.
Should you switch life insurance policies? correct answer not recommended
Questions with Accurate Answers
annuity correct answer A contract that provides a regular income typically for as
long as the person lives.
beneficiary correct answer A person designated to receive something, such as life
insurance proceeds, from the insured.
cash value correct answer The amount received after giving up a life insurance
policy.
chartered life underwriter ( CLU) correct answer A life insurance agent who has
passed a series of college-level examinations on insurance and related subjects.
double indemnity correct answer A benefit under which the company pays twice
value of the policy if the insured's death results from an accident.
How can the Internet help you create a life insurance plan? correct answer You
can visit www.naic.org to determine what/if you need life insurance, and get the
most for your money when buying it.
How do insurance companies determine your insurability? correct answer You fill
out an application, and from your answers, insurance companies can determine
how much to insure you
, How do insurance companies price their products? correct answer Insurance
companies price their products by finding a way to make their policies seem more
attractive and appealing, then they calculate the cost of time.
How do you determine the need for life insurance? correct answer how much
money do you leave for your dependents
incontestability clause correct answer A provision stating that the insurer cannot
dispute the validity of a policy after a specified period.
interest-adjusted index correct answer A method of evaluating the cost of life
insurance by taking into account the time value of money.
non forfeiture clause correct answer A provision that allows the insured not to
forfeit all accrued bene
nonparticipating policies correct answer Life insurance that does not provide
policy dividends; also called non par policy
participating policy correct answer Life insurance that provides policy dividends;
also called par policy
rider correct answer A document attached to a policy that modifies each
coverage.
Should you switch life insurance policies? correct answer not recommended
