11 Flashcards

1
Q

To sell variable life must have

A

Finra securities life ins

Not sec

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2
Q

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

A

General acct

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3
Q

Interest sensitive whole life aka

A

Current assumption life

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4
Q

Interest sensitive whole life provides

A

Guaranteed death benefit to 100 age

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5
Q

Death benefit in variable univ life policy

A

Depends in performance of sep acct

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6
Q

What entity does not regulate variable life policies

A

Guaranty association

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7
Q

In variable univ life policy

A

Death benefit is fixed

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8
Q

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

A

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

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9
Q

Equity index whole life aka

A

Indexed whole life

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10
Q

Indexed whole life main feature is

A

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

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11
Q

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

A

Indexed whole life

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12
Q

Classified depending on whether policyowner or insurer assumes inflation risk

A

Indexed whole life policies

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13
Q

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

A

Face amount

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14
Q

In indexed whole life
If insurer assumes risk

A

PreMium remains level

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15
Q

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

A

Adjustable life

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16
Q

Faceamount Flexible set by policyowner with proof of insurability

Cash value fixed rate of return general acct

Policy loans can borrow cash value

A

Key feature of adjustable life

17
Q

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

A

Universal life

18
Q

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

A

Variable life

19
Q

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

A

Joint life first to die

20
Q

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

A

Joint life policy

21
Q

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

A

100000

22
Q

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

A

Jlp

23
Q

Joint whole life functions similarly to individual whole except

A

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