A flexible premium, adjustable benefit life insurance contract that accumulates cash values is called
Detailed Answer
D is correct. This is the definition of universal life insurance.
2
Christy has a term policy that will enable her to switch over to a whole
life policy at any time during the first half of the term without providing evidence of insurability. What type of policy is this?
Detailed Answer
C is correct. This is an example of convertible term insurance.
3
Which of the following is not an advantage of whole life policies?
Detailed Answer
A is correct. Whole life policies provide level premiums, but term
insurance could provide the same coverage at a lower cost.
4
Janice and Julie are identical twins who both work as teachers and live
next door to each other. They each purchase a $75,000 whole life policy at the same time. Janice chooses continuous premium whole life,
and Julie chooses a 20-pay whole life policy. Which sister is probably
paying a higher premium?
Detailed Answer
B is correct. Because Julie decided to pay her entire policy premium
in a shorter period of time, her premiums will be higher.
5
Gerald has a state insurance license but no other training or licenses.
Gerald can sell any of the following except a(n)
Detailed Answer
D is correct. To sell this type of contract a producer must pass an
NASD exam and be registered to sell securities.
6
LaKita buys a policy that enables her to adjust the face amount, premium, and length of protection without having to complete a new application or have a new policy issued. LaKita has a(n)
Detailed Answer
A is correct. This is an example of adjustable life insurance.
7
What type of policy combines whole life insurance with decreasing
term coverage?
Detailed Answer
C is correct. This is an example of a family income policy.
8
What type of policy combines whole life insurance with level term coverage?
Detailed Answer
B is correct. This is an example of a family maintenance policy.
9
What type of policy combines whole life insurance on one family
member with term coverage on other family members?
Detailed Answer
D is correct. A family protection policy combines whole life insurance
for the policyowner with term coverage for other family members.
10
Tim has a life insurance policy that will pay $100,000 if he dies before
age 65 and $50,000 if he dies after age 65. Tim probably has a
Detailed Answer
D is correct. This is an example of a multiple protection policy.
