100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
CH 3 LIFE INSURANCE POLICIES PART 1 FINAL EXAM INSURANCE TEXAS LIFE AND HEALTH INSURANCE EXAM TEXAS INSURANCE LAWS FINAL EXAM REVIEW - TEXAS LIFE AND HEALTH FINAL EXAM INSURANCE TYPE OF INSURANCE POLICIES TEXAS LIFE AND HEALTH INSURANCE QUESTIONS WITH COM $22.49   Add to cart
Quickly navigate to
Preview
  2.  
  3. TEXAS LIFE & HEALTH INSURANCE
  4.  
  5. TEXAS LIFE & HEALTH INSURANCE

Exam (elaborations)

CH 3 LIFE INSURANCE POLICIES PART 1 FINAL EXAM INSURANCE TEXAS LIFE AND HEALTH INSURANCE EXAM TEXAS INSURANCE LAWS FINAL EXAM REVIEW - TEXAS LIFE AND HEALTH FINAL EXAM INSURANCE TYPE OF INSURANCE POLICIES TEXAS LIFE AND HEALTH INSURANCE QUESTIONS WITH COM
 6 views  0 purchase
  • Course
  • TEXAS LIFE & HEALTH INSURANCE
  • Institution
  • TEXAS LIFE & HEALTH INSURANCE

CH 3 LIFE INSURANCE POLICIES PART 1 FINAL EXAM INSURANCE TEXAS LIFE AND HEALTH INSURANCE EXAM TEXAS INSURANCE LAWS FINAL EXAM REVIEW - TEXAS LIFE AND HEALTH FINAL EXAM INSURANCE TYPE OF INSURANCE POLICIES TEXAS LIFE AND HEALTH INSURANCE QUESTIONS WITH COMPLETE ANSWERS

Preview 4 out of 155  pages

Document information

  • September 5, 2024
  • 155
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • ch 3 life insurance policies part 1 final exam ins

Written for

  • TEXAS LIFE & HEALTH INSURANCE
  • TEXAS LIFE & HEALTH INSURANCE

Seller

avatar-seller
biggdreamer

Reviews received

Content preview

CH 3 LIFE INSURANCE POLICIES PART
1 FINAL EXAM INSURANCE TEXAS LIFE
AND HEALTH INSURANCE EXAM TEXAS
INSURANCE LAWS FINAL EXAM
REVIEW - TEXAS LIFE AND HEALTH
FINAL EXAM INSURANCE TYPE OF
INSURANCE POLICIES TEXAS LIFE AND
HEALTH INSURANCE QUESTIONS WITH
COMPLETE ANSWERS
Which statement about a whole life policy is correct? - Answer-Cash value may be
borrowed against

All of these are characteristics of an Adjustable Life policy EXCEPT - Answer-face
amount can be adjusted using policy dividends

What type of life insurance incorporates flexible premiums and an adjustable death
benefit? - Answer-universal life

Which of the following actions is NOT possible with a Universal Life policy? - Answer-
Premiums may be applied as a credit against income tax

What type of life policy covers 2 lives and pays the face amount after the first one dies?
- Answer-Joint life policy

A Renewable Term Policy is renewable at the option of the - Answer-insured

J is 35-years old and looking to purchase a whole life insurance policy. Which of the
following types of policies will provide the most rapid growth of cash value? - Answer-20
pay life

A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of these
statements made by the producer would be correct? - Answer-20-Pay Life accumulates
cash value faster than Straight Life

,T would like to be assured $10,000 is available in 10 years to replace a roof on his
house. What kind of $10,000 policy should T purchase? - Answer-Ten-Year Endowment

S is close to retiring and would like to purchase a policy that will yield greater gains than
bonds, but will still protect the principal with a minimum level or risk. Which product
would S be advised to purchase? - Answer-Equity index insurance

Under a Renewable Term policy, - Answer-the renewal premium is calculated on the
basis of the insured's attained age

Which of these types of policies may NOT have the Automatic Premium Loan provision
attached to it? - Answer-Decreasing Term

Which of the following types of policies pays a benefit if the insured goes blind? -
Answer-AD&D

A life insurance policy that provides a policyowner with cash value along with a level
face amount is called - Answer-whole life

Which type of policy is considered to be overfunded, as stated by IRS guidelines? -
Answer-Modified Endowment Contract

N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life
insurance policy with level premiums, permanent protection, and be paid-up at
retirement. Which of these should N purchase? - Answer-30 pay life

What kind of insurance policy supplies an income stream over a set period of time that
starts when the insured dies? - Answer-Family Maintenance Policy

A father who dies within 3 years after purchasing a life insurance policy on his infant
daughter can have the policy premiums waived under which provision? - Answer-payor
provision

What type of life insurance gives the greatest amount of coverage for a limited period of
time? - Answer-term life

A 42-year-old executive wants to purchase life insurance that will allow for increases or
decreases to coverage as his/her needs change. Which of the following policies will
best meet this need? - Answer-universal life

D needs life insurance that provides coverage for only a limited amount of time while
also paying the lowest possible premium. What kind of policy is needed? - Answer-level
term

How does a typical Variable Life Policy investment account grow? - Answer-Through
mutual funds, stocks, bonds

,A policy that becomes a Modified Endowment Contract (MEC) - Answer-will lose many
of its tax advantages

Life insurance that covers an insured's whole life with level premiums paid over a limited
time is called - Answer-limited pay life

Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies? -
Answer-policyowner

Which of the following statements is CORRECT about the period in which a Term Policy
can be converted? - Answer-it varies according to contract

A life policy with a death benefit that can fluctuate according to the performance of its
underlying investment portfolio is referred to as - Answer-variable life

What type of policy would offer a 40-year old the quickest accumulation of cash value?

Paid-up at 65
20-pay life
30-pay life
Straight whole life - Answer-20 pay life

A Limited-Pay Life policy has - Answer-premium payments limited to a specified number
of years

Which of these is an element of a Variable Life policy? - Answer-a fixed, level premium

A Whole Life Insurance Policy endows when the - Answer-Cash value equals the death
benefit

Credit life insurance is typically issued with which of the following types of coverage? -
Answer-decreasing term

A variable insurance policy - Answer-does not guarantee a return on its investment
accounts

Which of the following actions require a policyowner to provide proof of insurability in an
Adjustable Life policy? - Answer-increase face amount

L, aged 50, and L's spouse, 48, have one natural child and one adopted child. They
purchase a Family Policy that covers L's spouse to age 65. A death benefit will NOT be
paid in which of the following circumstances? - Answer-L's spouse dies at age 66.

What kind of life policy either pays the face value upon the death of the insured or when
the insured reaches age 100? - Answer-whole life

, A term life insurance policy matures - Answer-upon the insured's death during the term
of the policy

When a life insurance policy exceeds certain IRS table values, the result would create
which of the following? - Answer-Modified Endowment Contract (MEC)

How long does the coverage normally remain on a limited-pay life policy? - Answer-age
100

K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an
automobile accident. How much will the insurance company pay the beneficiary? -
Answer-$20,000 death benefit

The most important factor to consider when determining whether to convert term
insurance at the insured's attained age or the insured's original age is - Answer-the cost

What kind of life insurance policy pays a specified monthly income to a beneficiary for
30 years and then pays a lump sum benefit at the end of that 30 years? - Answer-family
maintenance policy

If X wants to buy $50,000 worth of permanent protection on his/her spouse and $25,000
worth of 10-year Term coverage on X under the same policy, the applicant should
purchase - Answer-A Whole Life Policy with an Other Insured Rider

Which type of life policy contains a monthly mortality charge as well as self-directed
investment choices? - Answer-Variable Universal Life

What type of life policy covers two people and pays upon the death of the last insured? -
Answer-Survivorship

S is covered by a whole life policy. Which insurance product can cover his children? -
Answer-child term rider

K buys a policy where the premium stays fixed for the first 5 years. The premium then
increases in year 6 and stays level thereafter, all the while the death benefit remains the
same. What kind of policy is this? - Answer-Modified Whole Life

Which of the following combination plans is designed to protect an insured from an
unpaid mortgage balance upon premature death? - Answer-Joint Life

Which is true concerning a Variable Universal Life policy? - Answer-Policyowner
controls where the investment will go and selects the amount of the premium payment

Which of these life products is NOT considered interest-sensitive? - Answer-modified
whole life

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller biggdreamer. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $22.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

79271 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling

Recently viewed by you

Exam (elaborations) ·

(0)

PATHFINDER NOMENCLATURE #1
$22.49
  • (0)
  Add to cart