11

Question 1

To sell variable life must have

Answer 1

Finra securities life ins

Not sec

Question 2

All true of variable products except
Invested in general acct
Cv not guaranteed
Owner best investment risk
Minimum death benefit guaranteed

Answer 2

General acct

Question 3

Interest sensitive whole life aka

Answer 3

Current assumption life

Question 4

Interest sensitive whole life provides

Answer 4

Guaranteed death benefit to 100 age

Question 5

Death benefit in variable univ life policy

Answer 5

Depends in performance of sep acct

Question 6

What entity does not regulate variable life policies

Answer 6

Guaranty association

Question 7

In variable univ life policy

Answer 7

Death benefit is fixed

Question 8

Interest sensitive whole life provides same benefits as other traditional whole life policies

Answer 8

With added benefit of current int rates which may allow greater cash accumulation or shorter prem paying period

Question 9

Equity index whole life aka

Answer 9

Indexed whole life

Question 10

Indexed whole life main feature is

Answer 10

Cash value is dependent on perf of equity index such as sp 500

Question 11

Face amount increases annually to keep pace with inflation as consumer price index increases w/o requiring evidence of insurability

Answer 11

Indexed whole life

Question 12

Classified depending on whether policyowner or insurer assumes inflation risk

Answer 12

Indexed whole life policies

Question 13

With indexed whole life
If owner assumes risk then policy premiums with increases in

Answer 13

Face amount

Question 14

In indexed whole life
If insurer assumes risk

Answer 14

PreMium remains level

Question 15

Premium Can be increases or decreased by policyowner

Faceamount Flexible set by policyowner with proof of insurability

Cash value fixed rate of return general acct

Policy loans can borrow cash value
Can be term or whole life can convert from one to other

Answer 15

Adjustable life

Question 16

Faceamount Flexible set by policyowner with proof of insurability

Cash value fixed rate of return general acct

Policy loans can borrow cash value

Answer 16

Key feature of adjustable life

Question 17

Permanent ins with renewable term protection
Flexible minimum or target
Flexible set by policyowner with proof of insurability
Guaranteed at minimum level general acct
Can borrow cash value

Answer 17

Universal life

Question 18

Permanent ins
Premium Fixed if whole life flexible if univ life
Face amount can increase or decrease to stated minimum
Not guaranteed sep acct
Can borrow cash value

Answer 18

Variable life

Question 19

Cover lives of two insured rates are blended
Upon death of 1st insured policy ends

Answer 19

Joint life first to die

Question 20

Married couple owns permanent policy which covers both their lives pays death benefit upon death of first

Answer 20

Joint life policy

Question 21

Purchased 100000 jlp on self and wife
Eight years later died in automobile
Wife?

Answer 21

100000

Question 22

Designed two or more lives
Can be term or perm
Premium Less than same type in same individuals

Answer 22

Jlp

Question 23

Joint whole life functions similarly to individual whole except

Answer 23

Based on joint average age
Death benefit is paid upon first dead only