When can a policy owner change a revocable beneficiary? - Anytime
M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as
... [Show More] beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son? - Revocable
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy? - If the primary beneficiary dies before the insured
What is the underlying concept regarding level premiums? - The early years are charged less than what is needed
A policy owner is able to choose the frequency of premium payments through what policy feature? - Premium Mode
Any changes made on an insurance application requires the initials of whom? - Applicant
All of these are considered sources of underwriting information about an applicant EXCEPT - Rating Services
Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation? - Policy was returned within the free-look period, premium will be fully refunded
M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT - free-look period has expired
What action should a producer take if the initial premium is NOT submitted with the application? - Forward the application to the insurer without the initial premium
Which of the following is an important underwriting principle of group life insurance? - Everyone must be covered in the group
Which requirement must be met for an association to be eligible for a group life plan? - Group was formed for a purpose other than acquiring insurance
When an employee is terminated, which statement about a group term life conversion is true? - Policy proceeds will be paid if the employee dies during the conversion period
Under a trustee group life policy, who would be eligible for a certificate of coverage? - Corporation
N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase? - Fixed Deferred
S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation? - Single Premium
Which of these is an element of a Single Premium annuity? - Lump-sum payment
Which of these statements concerning an Individual Straight Life annuity is accurate? - Payments are made to an annuitant for life
An individual who purchases a Life annuity is given protection against - the risk of living longer than expected
An immediate annuity consists of a - single premium
All of these are considered to be a benefit under Social Security EXCEPT for - unemployment
Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company? - Annuity
Which statement regarding third-party ownership of a life insurance policy is true? - It is used extensively in estate-planning as well as business circumstances
Company Z has a Cross Purchase Buy-Sell Agreement in place among its three founding partners. If the agreement is funded with individual life insurance, what would it require? - Each partner must own a policy on the other partners
Who elects the governing body of a mutual insurance company? - policyholders
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? - at future dates specified in the contract with no evidence of insurability required
S would like to use dividends from her life insurance policy to purchase paid-up additions. All of these would be factors that determine how much coverage can be purchased EXCEPT - beneficiary's age
M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer will deduct the outstanding loan balance from the - policy proceeds
What is the Suicide provision designed to do? - safeguard the insurer from an applicant who is contemplating suicide
What provision in a life insurance policy states that the application is considered part of the contract? - Entire Contract provision
The incontestable clause allows an insurer to - contest a claim during the contestable period
All of these statements about the Waiver of Premium provision are correct EXCEPT - Insured must be eligible for Social Security disability for claim to be accepted
Which of the following statements is CORRECT about accelerated death benefits? - Must have a terminal illness to qualify
Which of the following provisions guarantees that premiums will be waived if a Juvenile Life policyowner becomes disabled? - Payor clause
What benefit does the Payor clause on a Juvenile Life policy provide? - Premiums are waived if payor becomes disabled
P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount? - Accidental Death and Dismemberment provision
L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the Misstatement of Age provision, the insurer will - adjust the death benefit to a reduced amount
S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy? - Return of premium rider
D was actively serving in the Marines when he was killed in an automobile accident while on leave. His $100,000 Whole life policy contains a War Exclusion clause. How much will D's beneficiary's receive? - The full face amount
In a Life insurance contract, an insurance company's promise to pay stated benefits is called the - Insuring clause
What does the ownership clause in a life insurance policy state? - Who the policyowner is and what rights the policyowner is entitled to
An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period? - Full face amount minus any past due premiums [Show Less]