CH2

Question 1

Which two terms are associated directly with the way an annuity is funded?

A- Single payment or periodic payments

B- Increasing or decreasing

C- Immediate or deferred

D- Renewableorconvertible

Answer 1

A- Single payment or periodic payments

Question 2

The LEAST expensive first-year premium is found in which of the following policies?

A- Level Term

B- Decreasing Term

C- Annually Renewable Term

D- IncreasingTerm

Answer 2

C- Annually Renewable Term

Question 3

Which of the following is NOT a type of whole life insurance?

A-Limited payment

B- Level term

C- Single premium

D- Straightlife

Answer 3

B- Level term

Question 3

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?

A- Equity Indexed Universal Life

B- Universal Life - Option A

C- Universal Life - Option B

D- VariableUniversalLife

Answer 3

B- Universal Life - Option A

Question 4

Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?

A- Variable option

B- Option B

C- Option A

D- Corridoroption

Answer 4

B- Option B

Question 5

All of the following entities regulate variable life policies EXCEPT

A- Federal government.

B- The Guaranty Association.

C- The Insurance Department.

D- TheSEC.

Answer 5

B- The Guaranty Association.