Uses Of life Ins

Question 1

Which of these factors is not taken into account when determining an applicant’s life insurance needs

Answer 1

Social security yes, automobile no, savings yes, pension yes

Question 2

Which of these factors is not taken into account when determining an applicant’s life insurance needs

Answer 2

Social security yes, automobile no, savings yes, pension yes

Question 3

Purchasing a life insurance policy to enable your heirs to pay estate taxes is called

Answer 3

Estate conservation

Question 4

Which of these is a method determining funds available required to provide ongoing support in the event of a breadwinner’s death.

Answer 4

Human life value

Question 5

What approach predicts a person’s earnings potential and determines how much of d that amount would be devoted to dependents?

Answer 5

Human life value approach

Question 6

All of the following are considered appropriate uses of life ins for biz purposes except…attracting quality employees by offering a group life plan / funding an entity buy sell agreement / protecting the biz by covering key employees w life ins / protecting the biz by covering entry level employees with life insurance

Answer 6

protecting the biz by covering entry level employees with life ins

Question 7

When calculating the amount of life ins needed for an income earner, what has to be determined when using the needs approach?

Answer 7

The family’s objectives if the income earner were to die or become disabled

Question 8

All of the following are examples of a business continuation plan except

Answer 8

Deferred compensation

Question 9

And underwriters primary responsibility to an insurer is to protect against

Answer 9

Adverse selection

Question 10

All of the following riders can increase the death benefit amount except…. cost-of-living waiver of premium, accidental, death, writer guaranteed, and insurance ability.

Answer 10

Waiver of premium doesn’t not increase premium

Question 11

Hey, buyers died must

Answer 11

Contain content approved by the commissioner

Question 12

Which of the following is required by an agent who is replacing an existing Life Insurance ?

Answer 12

Submit to the replacing, ensure a list of the policies to be replaced

Question 13

It may receive credit life insurance in which of the following forms

Answer 13

Group term life

Question 14

Which settlement option involves having the proceeds, remain with the insurance and earnings paid on a monthly basis to the beneficiary?

Answer 14

Interest only the settlement option that allows proceeds to remain with the insurer and earnings to be paid to the beneficiary on a monthly basis is called interest only

Question 15

Offering to return a portion of the premium to the insured as an inducement to purchase insurance is an illegal act known as the following following

Answer 15

Rebating is offering a premium rebate gift or special advantage of any kind of specified in the contract to consumers as an inducement to purchase an insurance policy

Question 16

A life insurance writer that allows an individual to purchase insurance as they are older regardless of insured ability is called a

Answer 16

Guaranteed insurability writer, which is designed to permit young individuals to be able to purchase additional insurance as they grow older, regardless of insurability; OK, insurance protection, writer or FIL future increase Option usually added to juvenile policies which may not be available for purchase or be added

Question 17

The policy owner can receive an immediate payment before the insured dies by using a

Answer 17

Viatical settlement contract

Question 18

A provision and whole life insurance that allows policy owners to terminate the policy in return for a reduced paid up policy for the same type is

Answer 18

A non-forfeiture provision, which allows a person to stop paying premiums and not forfeit any equity in the policy and get back the cash value and rate of accumulation in their policy after a period of time is dictated by their state anywhere between one and three years

Question 19

The amount of credit Life Insurance may no no time

Answer 19

Exceed the amount of the debt since it is written specifically to retire alone when the debtor dies