Chapter 3 (Specialized Policies)

Question 1

__________ is a single policy that is designed to insure two or more lives

Answer 1

Joint life

Question 2

The premium is based on a ___________ that is between the ages of the insureds

Answer 2

joint average age

Question 3

The death benefit is paid upon the ____________

Answer 3

first death only.

Question 4

____________ on a joint life policy are determined by averaging the ages of both insureds.

Answer 4

Premium rates

Question 5

_____________ (also referred to as “second-to-die” or “last survivor” policy) is much the same as joint life in that it insures two or more lives for a premium that is based on a joint age.

Answer 5

Survivorship life

Question 6

Survivorship life is a type of policy is often used to ____________ upon the death of the last insured.

Answer 6

offset the liability of the estate tax

Question 7

Joint life =______________; survivorship life = second to die (last survivor).

Answer 7

first to die