Jeff Test 2

Question 1

A whole life policy will mature at what age?

Answer 1

100

Question 2

There are three methods of paying premiums for a while life policy. Which of the following is NOT a method?
A. Single premium
B. Weekly premium
C. Limited pay
D. Continuous pay

Answer 2

B Weekly premium

Question 3

All whole life policies have certain characteristics. Which of the following is not a characteristic of whole life?
A. Level premiums
B. Constant face amount
C. Pure protection
D. Cash Values

Answer 3

C. Pure protection

Question 4

A policy that provides protection for a specific period of time without permanent cash value is called

Answer 4

Term

Question 5

The type of policy that matures earlier than age 100 is
A. Whole life
B. Term
C. Endowment
D. Multiple protection

Answer 5

C. Endowment

Question 6

A family policy usually provides all of the following EXCEPT:
A. Permanent coverage on family head
B. Automatic coverage for children
C. Convertible term on children and spouse
D. Whole life and decreasing term on the family head

Answer 6

D. Whole life and decreasing term on family head

Question 7

A family income policy is created by combining whole life and:
A. Level term
B. Decreasing term
C. Increasing term
D. Endowment

Answer 7

B decreasing term

Question 8

A 25-year old man purchased a 20-year family income policy and died at age 35. How long will benefits be paid to his beneficiary?

Answer 8

10 years

Question 9

Which of the following signifies the differences between Universal Life and Variable Universal Life?
A. Cash Value
B. Ace amount
C. No death benefit
D. One requires a securities license to sell

Answer 9

D One requires a securities license to sell

Question 10

All other factors being equal, Which of the following list from the largest annual premium to the smallest annual premium?
A. 20- year endowment, 20-year level term. 20-year decreasing term, 20- year pay life
B. 20 year endowment, 20 pay life, 20 year level term, 20 year decreasing term

Answer 10

B.
Endowment is the highest
Term is the lowest
ALWAYS

Question 11

Which provision may be added to a permanent life policy, at no cost, that ensures that the policy will not lapse as long as there is cash value in the policy?
A. Mode of premium
B. Past due premium option
C. Application to reduce premium
D. Automatic premium loan option

Answer 11

D.
Automatic premium loan option

Question 12

A joint life policy usually has all the following characteristics except:
A. Two people insured
B. Coverage continues after the first insured dies
C. Policy expires after the first person dies
D. Insureds name each other beneficiary

Answer 12

B. Coverage continues after the first insured dies