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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
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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
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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

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

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  • ch 3 life insurance policies part 1 final exam ins

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

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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

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