Life Insurance Policies Ch. 3

Question 1

insured receives a monthly summary for his life insurance policy. He notices that the cash value of the policy is significantly lower this month than it was last month. What type of policy does the insured have?

Answer 1

Variable

Question 2

What type of policy is typically issued without proof of insurability from the insured?

Answer 2

Group policy

Question 3

When the amount of insurance is increased in an adjustable life policy, what will the insurer require from the insured?

Answer 3

Evidence of insurability

Question 4

If an employee wants to join group life insurance coverage outside of the open enrollment period, what would the employee have to provide?

Answer 4

Evidence of insurability

Question 5

Who owns a group life insurance contract?

Answer 5

The employer (also known as the sponsor of the group)

Question 6

What type of whole life insurance policy generates immediate cash value?

Answer 6

Single premium whole life