Life Insurance

Question 1

Policyowner

Answer 1

an individual or other entity who owns an insurance policy. The Policyowner has all the rights of ownership pertaining to the policy, including the right to name the beneficiary and the obligation to pay premiums

Question 2

Ordinary Life

Answer 2

three types of ordinary life insurance: whole life, term, and endowment

Question 3

Standard/fixed Policies

Answer 3

All paid premiums are returned

Question 4

Variable Policies

Answer 4

The current value of the account is returned

Question 5

Replacement

Answer 5

Any transaction that will result in issuing a new policy to replace an existing life insurance or annuity
- The replacing insurer will provide 30 days from date of delivery for unconditional refund of all premiums

Question 6

Conservation

Answer 6

Any attempt by the existing insurer or it’s agent to dissuade a policyowner from the replacement of existing life insurance or annuity

Question 7

Interest-adjusted net cost method

Answer 7

Life insurance surrender cost index. Useful to those who consider the level of cash value accumulation to be primary importance

Question 8

Comparative interest rate method

Answer 8

Life insurance net payment cost index. Useful for those whose main concern is the benefits to be paid upon death.

Question 9

Life only insurance

Answer 9

insurance on human lives