Which of the following statements about the change of plan provision in a life insurance contract is (are) true? I. A change to a lower premium policy results in a refund of the difference in the cash values of the two policies. II. A change to a higher premium policy requires evidence of insurability. A) […]
Date: September 19th, 2020
Which of the following statements about the assignment of a life insurance policy is (are) true? I. Under a collateral assignment, the policyowner assigns a life insurance policy to secure a loan. II. Under an absolute assignment, only limited ownership rights in a policy are transferred. A) I only B) II only C) both I […]
Date: September 19th, 2020
Which of the following statements is (are) true regarding the results of the 2014 study by the Life Insurance Market Research Association (LIMRA) on the adequacy of life insurance owned by households in the United States? I. The average household is adequately insured against the risk of premature death. II. The average household is significantly […]
Date: September 19th, 2020
A common use of second-to-die life insurance is A) insuring children. B) insuring “double income with kids” families. C) estate planning. D) insuring key employees of a business. ANSWER Answer: C
Date: September 19th, 2020
Which of the following statements about second-to-die life insurance is (are) true? I. The insurance is a form of endowment coverage. II. The premium is lower than the combined cost of purchasing a life insurance policy on each insured. A) I only B) II only C) both I and II D) neither I nor II […]
Date: September 19th, 2020
Gwen purchased an interesting life insurance policy. A minimum interest rate is guaranteed on the cash value, but additional interest may be credited based on the investment performance of a group of common stocks. There is also a cap on the additional interest credited to the policy. Based on this information, what type of life […]
Date: September 19th, 2020
Which of the following statements about savings bank life insurance is true? A) The maximum amount that a depositor can purchase is $50,000. B) The maximum amount of insurance that a depositor can purchase is limited to the amount of money on deposit in his or her savings account with the savings bank. C) The […]
Date: September 19th, 2020
Which of the following statements about indexed universal life insurance is true? A) It is another name for variable life insurance. B) Although a minimum interest rate is guaranteed, the rate credited can be higher if a specified stock index performs well. C) The cash value is usually credited with 100 percent of the return […]
Date: September 19th, 2020
Which of the following statements about home service life insurance, which evolved over time from a type of life insurance called industrial life insurance, is true? A) Most policies have a face value exceeding $100,000. B) Premiums are usually not collected at the insured’s home and are remitted directly to the agent or the insurer. […]
Date: September 19th, 2020
All of the following statements about employer-provided group life insurance are true EXCEPT A) Individual evidence of insurability, through a medical exam, is usually required. B) Group life insurance is a common employee benefit. C) A single contact between the employer and the insurer is issued. D) Employees are given certificates of insurance as evidence […]
Date: September 19th, 2020
