Pure or straight life - correct answer Which of the following annuity benefit payment options would generate the highest monthly payments to the contract
... [Show More] owner upon annuitization?
Paid-up additions
1-year term
Cash - correct answer All of the following are dividend options on a participating life insurance policy:
Insured - correct answer The person upon whose life an annuity is based is known as the:
Reduced paid-up - correct answer When a policyowner uses the cash value in their policy to buy a lesser amount of permanent life insurance, they have exercised which nonforfeiture option:
Interest only - correct answer Which of the following life insurance settlement options enables the beneficiary to conserve the proceeds of a life insurance policy?
The account value - correct answer In the case of a variable annuity sold to a senior citizen in this state for which the owner has directed that the premium be invested in the mutual funds underlying the contract during the 30-day cancellation period, cancellation during that period entitles the owner to a refund of:
They are purchased by those who are worried about outliving their savings.
They are not suitable as short term investments.
They may be used as a life insurance settlement option. - correct answer All of the following are true regarding annuities
Group (Life Insruance) - correct answer Which of the following would not be considered to be ordinary life insurance?
They are not guaranteed
They are legally defined as a return of premium and are not taxable
They are paid out of the insurer's accumulated surplus - correct answer All of the following are true regarding dividends paid by a mutual life insurance company
Renewable - correct answer Which type of term life insurance has a level face amount but a premium that increases each year as the insured gets older?
The amount and frequency of future losses are unknown - correct answer The transfer of risk to an insurance company is an effective risk management technique when:
Change the beneficiary
Assign or transfer ownership in the policy
Take a loan - correct answer The owner of a life insurance policy may do all of the following
The employer is the policyowner and the beneficiary
Death benefits are payable to the employer tax free
The employee is the insured - correct answer All of the following are true regarding key person life insurance:
A buy/sell agreement - correct answer If a corporation and a shareholder enter into an agreement that requires the corporation to buy the shareholder's shares upon his or her death, they have entered into: [Show Less]