Finance

Jane purchased a life insurance policy on her own life and named her d

Jane purchased a life insurance policy on her own life and named her daughter, Cheryl, as beneficiary. Cheryl has a history of not managing money well. Jane wants the death benefit paid to Cheryl in monthly installments over 20 years. Which settlement option should Jane pre-select for Cheryl? A) lump sum B) fixed amount C) […]

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Date: September 19th, 2020

Which of the following statements about the Linton yield is (are) true

Which of the following statements about the Linton yield is (are) true? I. It is based on the assumption that a cash-value policy can be viewed as a combination of insurance protection and a savings fund. II. It is the average compound annual rate of return required to make the savings deposits in a life […]

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Date: September 19th, 2020

Which of the following statements is (are) true concerning settlement

Which of the following statements is (are) true concerning settlement options? I. A straight life annuity provides the lowest amount of periodic income of all the life income options. II. Fixed-period and fixed-amount are life income options. A) I only B) II only C) both I and II D) neither I nor II     […]

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Date: September 19th, 2020

Malcolm would like to purchase life insurance. He is concerned that he

Malcolm would like to purchase life insurance. He is concerned that he might need additional life insurance in the future and that he might be uninsurable at that time. What provision can Malcolm add to his life insurance policy that will permit him to purchase additional life insurance at specified times in the future without […]

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Date: September 19th, 2020

Which of the following statements about the waiver-of-premium provisio

Which of the following statements about the waiver-of-premium provision in life insurance is true? A) Because the probability of becoming disabled exceeds the probability of premature death, the cost to include this provision is usually prohibitive at younger ages. B) Premiums are usually waived if the insured becomes partially disabled. C) Life insurance protection continues […]

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Date: September 19th, 2020

All of the following are requirements that must be satisfied before pr

All of the following are requirements that must be satisfied before premiums are waived under a waiver-of-premium provision EXCEPT A) The insured must furnish proof of disability to the insurer. B) The insured must be disabled before some specified age, such as age 60 or 65. C) The insured must satisfy the definition of disability. […]

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Date: September 19th, 2020

Which of the following statements about accelerated death benefits rid

Which of the following statements about accelerated death benefits riders is (are) true? I. The benefit paid is usually less than the full face amount. II. Several different medical conditions may trigger the payment of benefits. A) I only B) II only C) both I and II D) neither I nor II     ANSWER […]

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Date: September 19th, 2020

Al was named the beneficiary in his mother’s life insurance policy. Hi

Al was named the beneficiary in his mother’s life insurance policy. His mother died during the contestable period. The insurer denied payment, citing a material misrepresentation on the application. Al believes the insurer should pay the claim because the misrepresentation occurred on the application, and the application is not part of the formal agreement between […]

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Date: September 19th, 2020