Quick Quiz 3.B Flashcards
The preretirement period, one of the distinct income needs periods, is also known as the
Blackout period
Which of the following states the purpose of life insurance is to replace the economic value of an individual?
Human life value principle
in a buy-sell agreement, the life insurance policy is written on the
business owners life
Which of the following factors does NOT have an effect on the insurance premium rate?
Producer certification
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?
Deferred compensation plan
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
executive bonus plan
All of the following are examples of an insurable interest except
Tom would like to guy life insurance on his best friend
Which of the following terms refers to how easily an asset can be turned into cash without loss of value?
liquidity
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?
Beneficiary
Which of the following classes of life insurance has a death benefit only increasing premiums temporary coverage and expires at end of the term?
Term life insurance
Which of the following premiums is the morality element minus the interest element?
Net premium
All of the following are names of distinct income need periods EXCEPT
social securitiy
Life insurance premiums are lowest under which premium payment mode?
Annual
The number of individuals who die each year at at given age is also known as
mortality
Living and death benefits, level premiums, and lifetime coverage are characteristics of which of the follwing classes of insurance
Permanent life insurance
Whole life insurance is often referred to as
permanent insurance
Which whole life policy allows for a lifetime of premiums to be paid in shorter period of time such as 10 or 20 years?
Limited-pay whole life
The death benefit of a whole life policy is
fixed and level
The distinguishing feature of a variable policy is that all of the earnings depend on the investment performance of a
seperate account
When does the face amount of a jumping juvenile policy typically increase?
Age 18
Which of the following specialized policies insures two people and pays its benefit when the first one dies?
Joint life policy
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
renewable term
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
limited pay policy
Ashley has a policy that she must pay premiums on until she is 100 years old or until she dies. Ashley has
a continuous premium whole life policy
Which of the following is NOT flexible in a universal life policy?
Guarenteed interest rate
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?
120000
Which of the following types of insurance is designed to iprovide life insurance protection for only a limited time?
Term life insurance
Which of the following types of insurance requires a level premium and provides lifelong protection?
Whole life insurance
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?
Convertible term insurance