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All of the following are true about variable products EXCEPT
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Which of the following is a feature of a variable annuity?
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Chapter 2

Types of Insurance

QuestionAnswer
All of the following are true about variable products EXCEPT The premiums are invested in the insurer’s general account.
Which of the following is a feature of a variable annuity? Benefit payment amounts are not guaranteed.
When would a 20-pay whole life policy endow? When the insured reaches age 100
Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client? Limited pay whole life
Which of the following is NOT true regarding the annuitant? The annuitant cannot be the same person as the annuity owner.
Which of the following best describes annually renewable term insurance? It is level term insurance.
An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/an DInterest-sensitive Whole Life.
Which of the following is NOT a type of whole life insurance? Level Term
A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy Required a premium increase each renewal.
A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this? Level Term
All of the following statements about equity index annuities are correct EXCEPT The annuitant receives a fixed amount of return.
Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount? Universal life
An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/an Interest-sensitive Whole Life.
Which type of life insurance policy generates immediate cash value? Single Premium
Which is TRUE about the cash surrender nonforfeiture option? Funds exceeding the premium paid are taxable as ordinary income.
A Return of Premium term life policy is written as what type of term coverage? Increasing
Which type of life insurance policy allows the policyowner to pay more or less than the planned premium? Universal life
Which Universal Life option has a gradually increasing cash value and a level death benefit? Option A
A married couple's retirement annuity pays them $250 per month. The husband dies and his wife continues to receive $125.50 per month for as long as she lives. When the wife dies, payments stop. What settlement option did they select? Joint and survivor
Which of the following is a short-term annuity that limits the amounts paid to a specific fixed period or until a specific fixed amount is liquidated? Annuity certain
A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy? Joint life
All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT It is a life contingency option.
Under which installments option does the annuitant select the amount of each payment, and the insurer determines how long they will pay benefits? Fixed amount
What form of the annuity settlement options provides payments to an annuitant for the rest of the annuitant's life and ceases at the annuitant's death? Pure life
Under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive Nothing; the payments will cease.
A domestic insurer issuing variable contracts must establish one or more Separate accounts.
Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit? Universal Life – Option A
Created by: Hayley92
 

 



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