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LIFE SECTION 1 LIFE SECTION 1 1) Sandra Timms, age 27, is advised by her producer to purchase Life insurance to cover a 20-year-amortized $50,000 business-improvement loan. Which of the following plans would adequately protect Ms. Timms at the minimum premium outlay? A- $50,000 Whole Life policy B- $50,000 Level Term policy for 20 years C- $50,000 20 Pay Life policy D- $50,000 Decreasing Term policy for 20 years D—A $50,000 Decreasing Term policy for 20 years Explanation: The...

Convertible Term Life Insurance This optional form of term life insurance lets the policyowner convert the policy to a whole life policy without having to prove insurability. Ordinary Life Insurance This class of individual life insurance has many flexible options and features policies with face amounts greater than $25,000. Currently Insured Status (Social Security) This Social Security insured status makes workers eligible for death benefits only. Waiver of Premium (WP)...

Question 1 Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? Life income Question 2 A new agent must complete at least _____ hours of continuing education within 24 months of initial license? 24 hours Question 3 L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L has understated range on the application. Under the misstatement of age provision the insurer will? ...

#1. In a survivorship life policy, when does the insurer pay the death benefit? a) If the insured survives to age 100 b) Upon the last death c) Upon the first death d) Half at the first death, and half at the second death b) Upon the last death #3. A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums? a) The premiums will become ...

P completes an application for a $10,000 life policy, but does not give the producer the initial premium. P's coverage becomes effective when P receives the policy and pays the premium 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 carrer? 20-Pay Life accumulates cash value faster than Straight Life How does an indexed...

Insurance (General concept) - transfers the risk of loss from an individual to an insurer - based on the principle of indemnity - based on the principle of risk (risk pooling) insurable interest (General Concept) - must exist at the time of the application - insuring one's own life, family member, or a business partner Solicitation and sales presentation - illustration- presentation of nonguaranteed elements - buyer's guide is generic information about life polices which...

claimant a person who submits a claim for payment of benefits dividend a payment made by a policy (distribution of profits or returned of unused funds) lapse policy termination due to a non payment of premium Nonforfeiture Values benefits in a life insurance policy that the policy owner cannot lose even if the policy is surrendered or lapses nonguaranteed elements policy components that are not guaranteed in the contract or that may fluctuate (e.g. dividends, int...

Who is considered a field underwriter? An agent When must insurable interest exist in life insurance? Application or issue date If no receipt is issued at the time of application, a statement of good health is usually required at the time of? Policy delivery The Medical Information Bureau is?(MIB) a source of medical information to alert insurers to adverse medical history A substandard risk compared to a standard risk would pay? a higher premium Which doc...

D is an architect receiving Disability Income benefits who is not able to return to work full time, but can work on a part-time basis. Which of these features would allow D to continue receiving benefits? *Residual Benefit clause *Waiver Benefit clause *Concurrent Benefit clause *Guaranteed Benefit clause Residual Benefit clause The individual who provides general medical care for a patient as well as the referral for specialized care is known as a: *Physician's assistant *Pri...

A Variable insurance policy: -guarantees a minimum rate of return -does not allow the policyowner to assume the investment risk -does not guarantee a return on its investment accounts -does not guarantee an assignment provision -does not guarantee a return on its investment accounts The individual most likely to buy a Medicare Supplement policy would be a(n) -unemployed 64-year old female -62-year old male covered by Medicaid -68-year old male covered by Medicare -uninsured 6...

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy Required a premium increase each renewal. Annually Renewable Term policies' premiums are adjusted each year to the insured's attained age; however, the policy may be guaranteed renewable. Death benefits remain level, and as with any term policy, there are no cash values. A key person insurance policy can pay for ...

In Texas, which of these statements regarding the Suicide clause is True? An Insurer may not use suicide as a defense against payment after the second year 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 The percentage of an individual's Primary Insurance Amount (PIA) determines the benefits paid which of the following programs? Social Sec...

The accounting measurement of an insurer's future obligations to its policy holders Reserves Who elects the governing body of a mutual insurance company? Policyholders A group owned insurance company that is formed to assume and spread liability risks of its members is known as Risk Retention Group Which of these describe a participating life insurance policy? Policy holders are entitled to receive dividends Which of the following required insurers to disclose wh...

When one party makes an offer and the other accepts At what point does an informal contract become binding? when the application is made when must insurable interest be present in order for a life insurance policy to be valid? Statement guaranteed to be true Which is the following BEST describes a warranty? Investor Originated Life Insurance (IOLI) A life insurance arrangement which circumvents insurable interest statutes is called... If material to the risk, fals...

An annuity promises that, if the annuitant dies before receiving payments equal to the correct value, the payments will be continued to a beneficiary until an amount equal to the contract value has been paid. This type of annuity is called An installment Refund annuity A Straight Life annuity A Cash Refund annuity A Joint Life annuity An installment Refund annuity One becomes eligible for Social Security disability benefits after having been disabled for 3 months 5 months 6 mo...

A certificate of _____ permits an insurance company to transact business in Texas. Authority Which of the following statements about Health Reimbursement Arrangements (HRA) is CORRECT? If the employee paid for qualified medical expenses, the reimbursements may be tax-free The individual who provides general medical care for a patient as well as the referral for specialized care is known as: Primary Care Physician Medicaid was designed to assist individuals who are Below ...

Which of these characteristics is consistent with a Straight Life Policy? Premiums are payable for as long as there is insurance coverage in force Which of the following are Equity Indexed annuities typically invested in? S&P 500 Which of the following does Social Security NOT provide benefits for? Dismemberment An example of false advertising would be An insurer exaggerating its dividends in a magazine advertisement A 45 year-old woman won $100,000 in a scratch-o...

Why does an insurer have a 2-year suicide clause? a) because the commissioner of insurance requires it. b) suicide is never paid for in life insurance. c)to prevent payment of an immediate claim for a person contemplating suicide. d) to help an insurer be more profitable. Answer: C To prevent payment of an immediate claim for a person contemplating suicide. Which of these could the owner of a life insurance policy do when there is a collateral assignment? a) determine how the divid...

At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? Upon completion of the application Who elects the governing body of a mutual insurance company? policyholders An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the Fair Credit Reporting Act What type of reinsurance contract involves two companies automatically sharing their risk exposure?...

If, at the time of an insured's death, the insurance company discovers that the insured's age was misstated on the application for life insurance, the company will most likely pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age The provision in a health insurance policy that suspends premiums being paid to the insurer while the insured is disabled is called the: Waiver of Premium P and Q are married and have three children. P is ...