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COMPLETE TEST BANK FOR TEXAS GENERAL LINES LIFE ACCIDENT AND HEALTH INSURANCE EXAMS (ALL SECTIONS) | ALL QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+ | VERIFIED ANSWERS | LATEST VERSION | STUDY THIS ONE!$30.99
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COMPLETE TEST BANK FOR TEXAS GENERAL LINES LIFE ACCIDENT AND HEALTH INSURANCE EXAMS (ALL SECTIONS) | ALL QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+ | VERIFIED ANSWERS | LATEST VERSION | STUDY THIS ONE!
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TEXAS GENERAL LINES LIFE ACCIDENT AND HEALTH INS
Institution
TEXAS GENERAL LINES LIFE ACCIDENT AND HEALTH INS
COMPLETE TEST BANK FOR TEXAS GENERAL LINES LIFE ACCIDENT AND HEALTH INSURANCE EXAMS (ALL SECTIONS) | ALL QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+ | VERIFIED ANSWERS | LATEST VERSION | STUDY THIS ONE!
COMPLETE TEST BANK FOR TEXAS GENERAL LINES LIFE
ACCIDENT AND HEALTH INSURANCE EXAMS (ALL
SECTIONS) | ALL QUESTIONS AND CORRECT ANSWERS |
ALREADY GRADED A+ | VERIFIED ANSWERS | LATEST
VERSION | STUDY THIS ONE!
LIFE SECTION 1
1) Sandra Timms, age 27, is advised by her producer to purchase Life
insurance to cover a 20-year-amortized $50,000 business-improvement
loan. Which of the following plans would adequately protect Ms. Timms at
the minimum premium outlay?
A- $50,000 Whole Life policy
B- $50,000 Level Term policy for 20 years
C- $50,000 20 Pay Life policy
D- $50,000 Decreasing Term policy for 20 years ------CORRECT
ANSWER---------------D—A $50,000 Decreasing Term policy for 20 years
Explanation: The key here is "minimum premium". Term is the most
inexpensive type of coverage. Since Sandra's $50,000 loan will be paid off
over 20 years and the loan balance will decrease each year, Decreasing
Term makes sense. Decreasing Term is not renewable.
2) A 45-year old customer who is seeking to supplement his retirement
income at age 65 would not buy a:
,3) John Livingston owns a 30-Pay Life policy that he purchased at the age
of 30. The cash value will equal the face amount of the policy when he
reaches the age of:
A- 60
B- 70
C- 100
D- 30 ------CORRECT ANSWER---------------C- 100
Explanation: Limited Pay Life insurance policies such as Life Paid Up at 65
or 20-Pay Life are simply variations of Whole Life policies. The cash value
will equal face amount of the policy (at least) at the maturity of the policy,
which is always age 100 on Whole Life policies. These limited-pay policies
are designed so that the insured may pay his or her premiums faster and
be "paid up" at a certain age. However, just because the premiums are
paid up doesn't mean the policy has matured.
4) Which of the following is an example of a Limited-Pay Life policy?
A- Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70 ------CORRECT ANSWER---------------C- Life
Paid-Up at Age 65
5) Which of the following policies provides the greatest amount of
protection for an insured's premium dollar as well as some cash
accumulation?
A- Annuity
B- Whole Life
C- Term
D- Limited-Pay Life ------CORRECT ANSWER---------------B- Whole Life
If we had not mentioned cash accumulation, the answer would have been
Term. However, Term has no cash value, so the answer is Whole Life,
which is the most inexpensive type of permanent insurance and is required
to have a cash value after the third policy year. Although Limited Pay Life is
a type of Whole Life, it is incorrect since it is usually quite expensive due to
,the shortened pay-in period. Annuities have no cash value except the
money the annuitant paid in. Since there is no death benefit, no protection
is offered.
6) Which of the following individual policy conversions is usually permitted
without any evidence of insurability? ------CORRECT ANSWER---------------
C- Conversion from a Term policy to a Whole Life policy
7) Which of the following is NOT correct regarding Ordinary Whole Life
policies?
A- The premiums payments are owed annually until you die or reach age
100
B- The cash value grows more quickly in the beginning years of the policy
C- Coverage lasts for your own life
D- Ordinary Whole Life is a type of permanent insurance ------CORRECT
ANSWER---------------D- Ordinary Whole Life is a type of permanent
insurance
8) Which of the following statements is true about the premium payment
schedule for a Whole Life policy?
A- Premiums are payable for a designated period of time only, after which
coverage is no longer provided
B- Premiums are payable until the insured's retirement only, after which
coverage is continued automatically until the insured's death
C- One premium, in the amount of the insured's choice, is payable at the
time of application, and the balance of the premiums is deducted from the
face amount of the policy at the time of the insured's death
D- Premiums are payable throughout the insured's lifetime, and coverage
continues until the insured's death ------CORRECT ANSWER---------------D-
Premiums are payable throughout the insured's lifetime, and coverage
continues until the insured's death
, 9) A life insurance policy that covers two parties, but only pays when the
last party dies is known as:
A- Joint Life
B- Contingent Life
C- Other insured Life
D- Survivorship Life ------CORRECT ANSWER---------------D- Survivorship
Life
10) Which of the following contracts requires that a series of benefit
payments be made at specified intervals?
A- 20-Pay Life
B- Modified Whole Life
C- Annuity
D- Ordinary Whole Life ------CORRECT ANSWER---------------C- Annuity
11) If a client wants cash value life insurance with a flexible premium and
an adjustable death benefit that will allow the policy owner a choice of
various cash value investment options, he should buy:
A- Variable Life
B- Universal Life
C- Adjustable Life
D- Variable/Universal Life ------CORRECT ANSWER---------------D-
Variable/Universal Life
12) If a person wants to invest a lump sum in an annuity that may
appreciate along with market and economic conditions, they should buy a:
A- Flexible premium Annuity
B- Fixed Annuity
C- Deferred Annuity
D- Variable Annuity ------CORRECT ANSWER---------------D- Variable
Annuity
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