Quick Quiz 3.B

Question 1

The preretirement period, one of the distinct income needs periods, is also known as the

Answer 1

Blackout period

Question 2

Which of the following states the purpose of life insurance is to replace the economic value of an individual?

Answer 2

Human life value principle

Question 3

in a buy-sell agreement, the life insurance policy is written on the

Answer 3

business owners life

Question 4

Which of the following factors does NOT have an effect on the insurance premium rate?

Answer 4

Producer certification

Question 5

Which of the following describes and employer that agrees to pay an employee a stated amount of income beginning at retirement rather than paying them the money now?

Answer 5

Deferred compensation plan

Question 6

All of the following are examples of buy-sell agreements EXCEPT A.cross-purchase plan B. entity plan C. stock redemtion plan D. executive bonus plan

Answer 6

executive bonus plan

Question 7

All of the following are examples of an insurable interest except

Answer 7

Tom would like to guy life insurance on his best friend

Question 8

Which of the following terms refers to how easily an asset can be turned into cash without loss of value?

Answer 8

liquidity

Question 9

When the owner of a life insurance policy is not the insured, there are three parties to the contract. Which of the following is not a party to this type of contract?

Answer 9

Beneficiary

Question 10

Which of the following classes of life insurance has a death benefit only increasing premiums temporary coverage and expires at end of the term?

Answer 10

Term life insurance

Question 11

Which of the following premiums is the morality element minus the interest element?

Answer 11

Net premium

Question 12

All of the following are names of distinct income need periods EXCEPT

Answer 12

social securitiy

Question 13

Life insurance premiums are lowest under which premium payment mode?

Answer 13

Annual

Question 14

The number of individuals who die each year at at given age is also known as

Answer 14

mortality

Question 15

Living and death benefits, level premiums, and lifetime coverage are characteristics of which of the follwing classes of insurance

Answer 15

Permanent life insurance

Question 16

Whole life insurance is often referred to as

Answer 16

permanent insurance

Question 17

Which whole life policy allows for a lifetime of premiums to be paid in shorter period of time such as 10 or 20 years?

Answer 17

Limited-pay whole life

Question 18

The death benefit of a whole life policy is

Answer 18

fixed and level

Question 19

The distinguishing feature of a variable policy is that all of the earnings depend on the investment performance of a

Answer 19

seperate account

Question 20

When does the face amount of a jumping juvenile policy typically increase?

Answer 20

Age 18

Question 21

Which of the following specialized policies insures two people and pays its benefit when the first one dies?

Answer 21

Joint life policy

Question 22

Pam owns a 1 year term policy. At the end of the year she may puchase another identical policy without showing proof of insurablity. Pams policy is

Answer 22

renewable term

Question 23

Zelda agrees to pay premiums on her policy every year for 20 years. After that she will no longer have to pay premiums but her insurance protection will continue until she dies. Zelda has a

Answer 23

limited pay policy

Question 24

Ashley has a policy that she must pay premiums on until she is 100 years old or until she dies. Ashley has

Answer 24

a continuous premium whole life policy

Question 25

Which of the following is NOT flexible in a universal life policy?

Answer 25

Guarenteed interest rate

Question 26

Martha ha a universal life policy she purchased several years earlier. At that time, the death benefit in the policy was 100000. Her cash value is now 20000 and she has selected death benefit option B How much is her current death benefit?

Answer 26

120000

Question 27

Which of the following types of insurance is designed to iprovide life insurance protection for only a limited time?

Answer 27

Term life insurance

Question 28

Which of the following types of insurance requires a level premium and provides lifelong protection?

Answer 28

Whole life insurance

Question 29

Christy has a term policy that will allow her to switch over to a whole life policy at any time during the first half of the term without providing evidence of insurability. What type of policy is this?

Answer 29

Convertible term insurance