Cash surrender value - Study guides, Class notes & Summaries

An insured owns a term policy with a guaranteed renewable option. When the end of the policy draws near, the insured answers medical questions in order to prove insurability and qualifies for a discounted premium rate. Which option best describes this scenario? 1) preferred premium reduction 2) contract review 3) revision of consideration 4) re-entry - ️️4) re-entry What method do insurers use to protect themselves against catastrophic losses? 1) pro rata liability 2) risk manageme...

Laws and Rules Pertinent to Insurance Questions and Answers Already Passed A form of medical health insurance covering the treatment and care of gum disease is called: Medicaid Major Medical Franchise health policy Dental expense insurance Dental expense insurance In South Carolina, what is the MAXIMUM length of time an insurer can defer payment of a cash surrender value of an annuity? 6 months 12 months 18 months 24 months 6 months When can a policy no longer be cancelled...

Life & Health Insurance Exam Colorado Questions and Answers 100% Pass 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...

California property and casualty exam, Pool Questions & Answers. Verified. Rated A The process where by a mutul insurer becomes a stock company is called - Demutalization The process whereby a stock company a mutal insurer is called - Mutalization The provision in a property policy which states that the insured has been paid up to their insurable interest is - Valuation clause The part of the policy that states the amout of coverage the insured property policy period is - Declara...

Kentucky Life and Health Insurance Exam (Latest 2024/ 2025 Update) Questions and Verified Answers| 100 % Correct| Grade A Q: Which type of life policy contains a monthly mortality charge as well as self-directed investment choices? Joint Life Adjustable Life Variable Universal Life Universal Life Answer: Variable Universal Life Q: Two agencies are competing for a new client. Agency A mentions to the prospective client that all of the companies with which it does busin...

Andrew's participating life insurance was issued on April 26, 1998. Since then, he has paid $28,000 in premiums and received $4,000 in cash from policy dividends. The cumulative net cost of pure insurance (NCPI) is $11,000 and the cash surrender value (CSV) is $50,000. Assuming Andrew's marginal tax rate is 45%, how much tax will he pay if he fully surrenders his policy? a) $9,900 b) $14,850 c) $16,650 d) $22,500 correct answers(wrong) $22,500 Rationale: ACB = Total ...

Disability Buy-Out plans feature: - ANSWER Long elimination plans up to two years (A disability buy-out plan funded with disability insurance has a long elimination period of generally two years. The elimination period begins the day of the disability. Then the disability policy will provide a lump sum to buy the disabled partner out. They want to make sure that the partner is not going to recover and come back to work) When MUST the Office of Insurance Regulation conduct a market conduct exa...

Pennsylvania Life Insurance – Provisions Questions and Answers Already Passed Which of these is NOT a typical life insurance nonforfeiture option? Reduced paid-up option Extended term option Cash surrender option Life income settlement option Life Income Settlement Option A life insurance policy's waiver of premium rider has the ability to waive the premium payments in the event the insured becomes financially insolvent waive the premium payments in the event the insured becom...

WA Life Insurance Study Questions with Complete Solutions Which of these is NOT considered to be a common life insurance nonforfeiture option? a) Cash surrender b) Extended term insurance c) Reduced paid-up insurance d) Life income annuity d) Life income annuity All of the following riders can increase the death benefit amount EXCEPT a) Cost of living b) Waiver of Premium c) Accidental Death Rider d) Guaranteed Insurability b) Waiver of Premium Joanne has a $100,000 whole life po...

Which of the following is the minimum denomination of Treasury notes that can be purchased by an investor? A. $50 B. $100 C. $1,000 D. $10,000 correct answers B. Which of the following statements describes a typical whole life insurance policy? (1) The premiums must be paid for the insured's entire lifetime, or for a period of at least ten years. (2) The cash value cannot be used as collateral for a loan. (3) The difference between a policy's face amount and the reserve mu...