Question 1

Most participating policies are sold by:

Accepted Answer

A)  federal government agencies.
B)  state insurance commissioners.
C)  mutual life insurance companies.
D)  stock life insurance companies.
E)  investment banks. C

Question 2

When you purchase a variable life policy,the insurance company assumes the risk of poor investment performance.

Accepted Answer

A) True 
 B)False

Question 3

Under the waiver of premium disability benefit provision,the company waives any premiums that are due after the onset of total and permanent disability.

Accepted Answer

A) True 
 B)False

Question 4

Universal life is a whole life policy that combines term insurance and investment elements.

Accepted Answer

A) True 
 B)False

Question 5

Credit life insurance is used to repay a personal debt should the borrower die before doing so.

Accepted Answer

A) True 
 B)False

Question 6

A beneficiary is a person designated to receive something,such as life insurance proceeds,from the insured.

Accepted Answer

A) True 
 B)False

Question 7

Which statement is correct regarding stock life insurance companies?

Accepted Answer

A)  A stock company sells participating policies.
B)  A stock company always charges higher premiums than mutual companies.
C)  A stockholder receives a policy dividend.
D)  A stock company generally sells nonparticipating policies.
E)  A stock company is owned by policyholders. D

Question 8

In the 1950s,the life insurance industry developed:

Accepted Answer

A)  the forces of supply and demand.
B)  the insurance division of the federal government.
C)  the forces of competition.
D)  mortality tables.
E)  the principle of life insurance.

Question 9

The premium for a whole life insurance policy remains constant:

Accepted Answer

A)  throughout your lifetime.
B)  during the first year of the policy.
C)  during the first five years of the policy.
D)  only through age 55.
E)  only through age 69.

Question 10

Which type of life insurance policy is growing in popularity,because the policyholder pays the same premium amount for the life of the policy?

Accepted Answer

A)  whole life
B)  multiyear term life
C)  decreasing term
D)  return-of-premium term
E)  convertible term

Question 11

An authoritative rating guide to the financial stability of the nation's insurers is published by all of the following except:

Accepted Answer

A)  Dow Jones amp; Company.
B)  Standard amp; Poor's.
C)  Moody's Rating Service.
D)  A.M.Best Company.
E)  Weiss Research.

Question 12

An interest-adjusted index is a method of evaluating the cost of life insurance by taking into account the time value of money.

Accepted Answer

A) True 
 B)False

Question 13

The easy method of determining life insurance needs assumes that your family is:

Accepted Answer

A)  rich.
B)  poor.
C)  typical.
D)  young.
E)  old. C

Question 14

Your annual income is $50,000.What is your life insurance need based on the easy method?

Accepted Answer

A)  $245,000
B)  $300,000
C)  $345,000
D)  $400,000
E)  $450,000

Question 15

Which of the following attributes would not be used by an Underwriter to determine the appropriate premiums to charge for insurance?

Accepted Answer

A)  Marital status
B)  Gender
C)  Health
D)  Age
E)  Occupation

Question 16

Which of the following are common uses of life insurance proceeds?

Accepted Answer

A)  provide an education for children
B)  set up an estate plan
C)  establish a regular income for survivors
D)  accumulate savings
E)  All of these are common uses.

Question 17

In creating a plan to buy your life insurance,what factors should you consider before buying? Also,describe from whom you should buy,including the sources,how companies are compared,and what kind of agent to use.

Accepted Answer

Before buying life insurance,you should ...

Question 18

Which of the following life insurance policies has a cash value feature:

Accepted Answer

A)  Term life
B)  Group life
C)  Credit life
D)  Whole life
E)  Convertible term

Question 19

Which of the following is a popular app for estimating life insurance needs?

Accepted Answer

A)  www.Kiplinger.com/insurance
B)  Human Life Value Calculator
C)  money.msn.com
D)  www.nerdwallet.com/life-insurance
E)  www.familyneeds.com

Question 20

Jane Curtain has a participating life insurance policy that returns part of her premiums at the end of the year.What is another name for this policy?

Accepted Answer

A)  Cash Value
B)  Par
C)  Policy dividend
D)  Rider
E)  Double Indemnity

Exam 12: Life Insurance

Most participating policies are sold by:

Correct AnswerverifiedC

When you purchase a variable life policy,the insurance company assumes the risk of poor investment performance.

Correct AnswerverifiedShow Answer

Under the waiver of premium disability benefit provision,the company waives any premiums that are due after the onset of total and permanent disability.

Correct AnswerverifiedShow Answer

Universal life is a whole life policy that combines term insurance and investment elements.

Correct AnswerverifiedShow Answer

Credit life insurance is used to repay a personal debt should the borrower die before doing so.

Correct AnswerverifiedShow Answer

A beneficiary is a person designated to receive something,such as life insurance proceeds,from the insured.

Correct AnswerverifiedShow Answer

Which statement is correct regarding stock life insurance companies?

Correct AnswerverifiedD

In the 1950s,the life insurance industry developed:

Correct AnswerverifiedShow Answer

The premium for a whole life insurance policy remains constant:

Correct AnswerverifiedShow Answer

Which type of life insurance policy is growing in popularity,because the policyholder pays the same premium amount for the life of the policy?

Correct AnswerverifiedShow Answer

An authoritative rating guide to the financial stability of the nation's insurers is published by all of the following except:

Correct AnswerverifiedShow Answer

An interest-adjusted index is a method of evaluating the cost of life insurance by taking into account the time value of money.

Correct AnswerverifiedShow Answer

The easy method of determining life insurance needs assumes that your family is:

Correct AnswerverifiedC

Your annual income is $50,000.What is your life insurance need based on the easy method?

Correct AnswerverifiedShow Answer

Which of the following attributes would not be used by an Underwriter to determine the appropriate premiums to charge for insurance?

Correct AnswerverifiedShow Answer

Which of the following are common uses of life insurance proceeds?

Correct AnswerverifiedShow Answer

In creating a plan to buy your life insurance,what factors should you consider before buying? Also,describe from whom you should buy,including the sources,how companies are compared,and what kind of agent to use.

Correct AnswerverifiedBefore buying life insurance,you should ...View AnswerShow Answer

Which of the following life insurance policies has a cash value feature:

Correct AnswerverifiedShow Answer

Which of the following is a popular app for estimating life insurance needs?

Correct AnswerverifiedShow Answer

Jane Curtain has a participating life insurance policy that returns part of her premiums at the end of the year.What is another name for this policy?

Correct AnswerverifiedShow Answer

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C

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D

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C

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Before buying life insurance,you should ...
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