Question 1

In a limited payment policy only a portion of the face amount is paid if death occurs in the early years.

Accepted Answer

A) True 
 B)False

Question 2

All of the following statements about an ordinary (whole)life insurance policy are true,except:

Accepted Answer

A) Premiums can be level throughout the policy period 
B) The face amount is paid if the insured lives to age 65 
C) There is a buildup of cash value that can be borrowed by the policyholder 
D) It can fulfill the insured's death protection AND saving needs 
A) Premiums can be level throughout the policy period 
B) The face amount is paid if the insured lives to age 65 
C) There is a buildup of cash value that can be borrowed by the policyholder 
D) It can fulfill the insured's death protection AND saving needs

Question 3

Why have term life insurance rates decreased in recent years?

Accepted Answer

A) they have not decreased; this is a trick question 
B) improved human longevity 
C) decrease in percentage of the population infected with HIV/AIDS 
D) regulatory intervention 
A) they have not decreased; this is a trick question 
B) improved human longevity 
C) decrease in percentage of the population infected with HIV/AIDS 
D) regulatory intervention

Question 4

Which of the following policies would have the highest premium for a standard risk male age 27?

Accepted Answer

A) level term 
B) whole life continuous premium 
C) whole life paid up at 65 
D) 10 pay whole life 
A) level term 
B) whole life continuous premium 
C) whole life paid up at 65 
D) 10 pay whole life

Question 5

A universal life insurance policy (ULI)is considered to be:

Accepted Answer

A) term insurance only 
B) a form of fixed face, fixed premium whole life insurance 
C) a whole life policy where the face amount may be changed at any time 
D) a version of the buy term and invest the difference strategy 
A) term insurance only 
B) a form of fixed face, fixed premium whole life insurance 
C) a whole life policy where the face amount may be changed at any time 
D) a version of the buy term and invest the difference strategy

Question 6

When life insurance is provided on a level premium basis,the premium payments increase at an increasing rate as the insured ages.

Accepted Answer

A) True 
 B)False

Question 7

Why does the death benefit increase under certain conditions in the universal life Plan A (fixed face amount)?

Accepted Answer

The answer of Why does the death benefit increase under...

Question 8

Assume that all of the life insurance policies listed below have a $50,000 face value,are sold by the same insurer,and have identical expense and mortality rates. Which of these,sold to a 27 year old female,should be the least expensive?

Accepted Answer

A) term life 
B) whole life 
C) universal life 
D) cannot be determined from the given information 
A) term life 
B) whole life 
C) universal life 
D) cannot be determined from the given information

Question 9

All the following are advantages of level premium whole life insurance except:

Accepted Answer

A) furnishes permanent protection 
B) small initial outlay v. single premium whole life 
C) combines savings with insurance 
D) provides inflation protection 
A) furnishes permanent protection 
B) small initial outlay v. single premium whole life 
C) combines savings with insurance 
D) provides inflation protection

Question 10

After taking an introductory course in insurance,your parents ask you what type of life insurance policy they should purchase if they want permanent death protection and the potential for earning a relatively high rate of return on their cash value. Which type of life insurance would you suggest?

Accepted Answer

A) Term life 
B) Whole life 
C) Universal life 
D) Variable life 
A) Term life 
B) Whole life 
C) Universal life 
D) Variable life

Question 11

Regarding variable life insurance,all of the following are true except:

Accepted Answer

A) provides no mortality or investment guarantees 
B) has flexible benefits based on investment returns 
C) allows the insured to choose how the cash value is invested 
D) is transparent with respect to costs and returns 
A) provides no mortality or investment guarantees 
B) has flexible benefits based on investment returns 
C) allows the insured to choose how the cash value is invested 
D) is transparent with respect to costs and returns

Question 12

Which statement about industrial life insurance is false?

Accepted Answer

A) relatively small premiums are collected on a frequent basis 
B) can also be called debit or home service life insurance 
C) cost of the coverage is relatively high 
D) individual policies are large since it is purchased for employees by their unions 
A) relatively small premiums are collected on a frequent basis 
B) can also be called debit or home service life insurance 
C) cost of the coverage is relatively high 
D) individual policies are large since it is purchased for employees by their unions

Question 13

Universal life insurance is an interest sensitive product.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is true with regard to term life insurance contracts?

Accepted Answer

A) policies of less than 10 year length are illegal in 13 states. 
B) one form of term life increases the amount of insurance as the balance due on a mortgage declines over time 
C) renewable term life insurance guarantees the insured that upon renewal, his premiums will not increase 
D) term insurance provides temporary protection 
A) policies of less than 10 year length are illegal in 13 states. 
B) one form of term life increases the amount of insurance as the balance due on a mortgage declines over time 
C) renewable term life insurance guarantees the insured that upon renewal, his premiums will not increase 
D) term insurance provides temporary protection

Question 15

The excess interest provision in life insurance means that the cash value will increase:

Accepted Answer

A) faster than the guaranteed rate if the insurer actually earns a greater return than the guaranteed rate 
B) faster than the guaranteed rate even if the insurer does not earns a greater return than the guaranteed rate 
C) faster than it would with a universal or variable life policy 
D) slower than the guaranteed rate 
A) faster than the guaranteed rate if the insurer actually earns a greater return than the guaranteed rate 
B) faster than the guaranteed rate even if the insurer does not earns a greater return than the guaranteed rate 
C) faster than it would with a universal or variable life policy 
D) slower than the guaranteed rate

In a limited payment policy only a portion of the face amount is paid if death occurs in the early years.

All of the following statements about an ordinary (whole)life insurance policy are true,except:

Why have term life insurance rates decreased in recent years?

Which of the following policies would have the highest premium for a standard risk male age 27?

A universal life insurance policy (ULI)is considered to be:

When life insurance is provided on a level premium basis,the premium payments increase at an increasing rate as the insured ages.

Why does the death benefit increase under certain conditions in the universal life Plan A (fixed face amount)?

Assume that all of the life insurance policies listed below have a $50,000 face value,are sold by the same insurer,and have identical expense and mortality rates. Which of these,sold to a 27 year old female,should be the least expensive?

All the following are advantages of level premium whole life insurance except:

After taking an introductory course in insurance,your parents ask you what type of life insurance policy they should purchase if they want permanent death protection and the potential for earning a relatively high rate of return on their cash value. Which type of life insurance would you suggest?

Regarding variable life insurance,all of the following are true except:

Which statement about industrial life insurance is false?

Universal life insurance is an interest sensitive product.

Which of the following is true with regard to term life insurance contracts?

The excess interest provision in life insurance means that the cash value will increase:

Fundamentals and Terminology

Defining the Insurable Event

Risk Management

Financial Services Companies

Insurance Occupations

the Insurance Market: the Economic Problem

Insurance Regulation

Insurance Contracts

Basic Property and Liability Insurance Contracts

Homeowners Insurance

the Personal Auto Policy

Professional Financial Planning

Standard Life Insurance Contract Provisions And Options

Annuities

Medical Expense and Disability Insurance

Advanced Topics in Risk Management

Commercial Property Insurance

Commercial Liability Insurance

Bonding,Crime Insurance and Reinsurance

Employee Benefits

Social Security

Unemployment and Workers Compensation Insurance

Filters

Exam 13: Life Insurance Policies

In a limited payment policy only a portion of the face amount is paid if death occurs in the early years.

All of the following statements about an ordinary (whole)life insurance policy are true,except:

Why have term life insurance rates decreased in recent years?

Which of the following policies would have the highest premium for a standard risk male age 27?

A universal life insurance policy (ULI)is considered to be:

When life insurance is provided on a level premium basis,the premium payments increase at an increasing rate as the insured ages.

Why does the death benefit increase under certain conditions in the universal life Plan A (fixed face amount)?

Assume that all of the life insurance policies listed below have a $50,000 face value,are sold by the same insurer,and have identical expense and mortality rates. Which of these,sold to a 27 year old female,should be the least expensive?

All the following are advantages of level premium whole life insurance except:

After taking an introductory course in insurance,your parents ask you what type of life insurance policy they should purchase if they want permanent death protection and the potential for earning a relatively high rate of return on their cash value. Which type of life insurance would you suggest?

Regarding variable life insurance,all of the following are true except:

Which statement about industrial life insurance is false?

Universal life insurance is an interest sensitive product.

Which of the following is true with regard to term life insurance contracts?

The excess interest provision in life insurance means that the cash value will increase:

Fundamentals and Terminology

Defining the Insurable Event

Risk Management

Financial Services Companies

Insurance Occupations

the Insurance Market: the Economic Problem

Insurance Regulation

Insurance Contracts

Basic Property and Liability Insurance Contracts

Homeowners Insurance

the Personal Auto Policy

Professional Financial Planning

Standard Life Insurance Contract Provisions And Options

Annuities

Medical Expense and Disability Insurance

Advanced Topics in Risk Management

Commercial Property Insurance

Commercial Liability Insurance

Bonding,Crime Insurance and Reinsurance

Employee Benefits

Social Security

Unemployment and Workers Compensation Insurance

Filters