Exam (elaborations)
Life and Health Insurance Exam Colorado 107 Questions with Verified Answers,100% CORRECT
- Course
- Institution
Life and Health Insurance Exam Colorado 107 Questions with Verified Answers
[Show more]
Content preview
Life and Health Insurance Exam Colorado 107 Questionswith Verified Answers
Traditional Whole Life - CORRECT ANSWER -Ordinary (Straight) Life
-Limited-Pay & Single-Premium Whole Life
-Adjustable Whole Life
Ordinary (Straight) Life - CORRECT ANSWER -Until 100 or Death, whichever comes
first
-Permanent Protection
-Rates & benefits based on law of large numbers (Mortality Rate)
-Guaranteed, tax-deferred interest rate
-Premium level, company's risk goes down as cash value goes up
-Insurer keeps the cash value if death to offset risk
-Lowest net cost in long run
-Client has access to cash through cash surrender or policy loan
-Rates are per unit of protection (1,000 is 1 unit)---TEST
-Cash value is guaranteed
-Cash value will equal face amount at policy maturity
Limited-Pay & Single-Premium Whole Life - CORRECT ANSWER -Premium paying
period is shorter
-Cash value still equals face amount at age 100
-20 pay life will be paid up in 20 years PL
-Life Paid up at age 65, will be paid up at 65 LP
-A single premium policy will have an immediate cash value (1-pay life)---TEST
Adjustable Whole Life----TEST - CORRECT ANSWER -Sold to clients with fluctuating
incomes----TEST
-Combination of term and whole life----TEST
-Coverage may not be increased without physical exam---TEST
Interest/Market Sensitive Whole Life Products - CORRECT ANSWER -Universal
Whole life
-Variable Whole life
,-Variable/Universal Whole life
-Equity-Indexed Life
Universal Whole life - CORRECT ANSWER -Guaranteed minimum interest rates
-Extreme flexibility regarding premium PMTs----TEST
-Most flexible product
-Target premium based on projected earnings
-Option A UL has level death benefits
-Option B UL will pay beneficiary both face amount + cash value
Variable Whole life - CORRECT ANSWER -Cash value deposited into a separate
account
-Requires FINRA series 6 or 7 to sell
-Used to be called NASD
-Regulated by SEC
-Regulated by FINRA (Financial Industry Regulatory Authority)
-NYSE license not required
-Minimum death benefit (face amount) is guaranteed---TEST
-Has fixed premium---TEST
Variable/Universal Whole life - CORRECT ANSWER -Requires Finra(series 6 or 7)
licenses to sell
-Allows client to self-direct cash values into sub-account---TEST
-Flexible premium
Equity-Indexed Life - CORRECT ANSWER -cash value, where minimum death
benefit is guaranteed as well as the minimum earning on the cash value in the
general account
-Securities license is not required
-Fixed Premium
Term Life - CORRECT ANSWER -Level Term
-Decreasing Term
-Increasing Term
General Features of Term Insurance - CORRECT ANSWER -Premium goes up every
year
, -May be converted to whole life at current attained age regardless of health
-May be renewable up to certain age without physical
Level Term - CORRECT ANSWER Both premium and face amount are level for
period of time
Decreasing Term - CORRECT ANSWER -Face amount goes down but premium
remains the same
-Usually convertible to whole life regardless of health
-Premium stays the same but cost increases as face amount decreases
Increasing Term - CORRECT ANSWER -Face amount goes up instead of down
-Allows beneficiary to receive the face amount + premiums or cash values
-Also known as Universal Life option B
Special features of Term Insurance - CORRECT ANSWER -Renewable/Convertible
to whole up to certain date or age regardless of health
-Conversion based on current age
-May only convert to more expensive option
-Cannot convert to term
-Cannot convert to more coverage than you have
Return of Premium under Term - CORRECT ANSWER The premium for a return of
premium policy is generally more than that for a term policy, but less than that of
a traditional whole life policy
General Features of Annuities - CORRECT ANSWER -Always have beneficiary
during the pay-in or accumulation period
-May or may not have a beneficiary during the pay-out or annuity period
-During pay-out period all Pmt's are for the life of the annuitant
-Long-term investments subject to 10% early withdrawal penalties on withdrawals
taken prior to 59.5
-Immediate annuities have no pay-in or accumulation period--single premium
-Variable annuities use a separate account (Like Mutual fund)
-Have 30-day grace period
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
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 paulhans. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81989 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now