Life Insurance basics Flashcards
1
Q
What factors are used to determine gross premium?
A
Mortality + expenses - interest
2
Q
All the following are personal use of life insurance except
A
Estate liquidation
3
Q
Which of the following are TRUE regarding a participating policy?
A
Dividends are paid to policy owners
4
Q
An example of business insurance when the business is the owner, pays the premium, and is the beneficiary is a/an
A
Key person policy
5
Q
Two business partners own life insurance on each other. If one partner dies, which of the following contracts will allow the other partner to use the death benefit to purchase the deceased partners interest?
A
Buy-sell agreement
6
Q
Who controls all rights in a life insurance policy in an executive bonus agreement?
A
Employee
