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Terms in this set (397)
All of the following are eligible to purchase a group life Stan and his neighbors are not eligible to purchase group life insurance
insurance policy EXCEPT: because a group cannot be formed solely to obtain life insurance
the Wonderful Widget Company, which employs more
than 200 people
the State Electrical Workers Union
the Retailers Multiple Employer Trust, formed by two
retailers to purchase insurance for their employees
Stan and his neighbors, who form their own group to
buy group coverage at a lower cost than their individual
coverages
With respect to the difference between variable life Variable life policies require a fixed premium payable for the life of the policy
insurance (VLI) and variable universal life insurance while variable universal life permits premium flexibility
(VUL), which of the following statements is correct?
Variable life policies require a fixed premium payable
for the life of the policy while variable universal life
permits premium flexibility.
Only variable life policies allow the policyowner to put
funds in investment subaccounts.
Only variable universal life policies offer a minimum
death benefit.
Only variable universal life is a securities product.
,Jessica, age 25, buys a $100,00 life insurance policy. The graded premium whole life
initial premium is lower than straight whole life rates and
increases each year for the first ten years of the policy
period. After that, the premium levels off and remains at
that amount for the life of the policy. What type of
policy does Jessica own?
indeterminate premium whole life
single premium life
graded premium whole life
20-pay life
Which statement about modified premium whole life It does not build a cash value
insurance is NOT correct?
It does not build cash value.
It charges lower premiums in the early policy years.
At the end of the initial period, the premium increases
and stays at the new level for the life of the policy.
It is good for people who want the guarantees of
whole life insurance and lower early premiums.
A life insurance policy matures or endows when its well before age 120, usually at age 65
guaranteed cash value equals its face amount. With an
endowment contract, when does the policy endow?
when the insured dies
at age 120
after age 120
well before age 120, usually at age 65
A type of permanent life insurance that lets the universal life insurance
policyowner increase, reduce or even skip premium
payments at will without the policy lapsing best
describes:
variable life insurance
universal life insurance
adjustable life insurance
modified premium whole life insurance
Variable universal life combines features of variable life both are considered securities products as well ass life insurance
and universal life. Variable universal life and universal
life are alike in all the following ways EXCEPT:
The premium payments for both are flexible.
Both types of policies let the policyowner choose a
death benefit from two (or sometimes three) options.
For both policies, the insurer deducts insurance and
expenses monthly from the cash value.
Both are considered securities products as well as life
insurance.
, All the following statements about term life insurance a small cash value gradually accumulates while the policy is in force
are correct EXCEPT:
It offers protection for a specified, limited period.
A small cash value gradually accumulates while the
policy is in force.
Upon issue, it is generally less expensive than
permanent insurance of comparable face amount.
It pays a benefit only if the insured dies during the
specified period.
A type of life insurance that covers two people and survivorship life
pays the death benefit only upon the second insured's
death is called
survivorship life
family life
spousal life
joint life
Under a joint life insurance policy, when does the when the first insured dies
insurer pay the death benefit?
when the first insured dies
only when the surviving insured dies
only when the older insured dies
only when the younger insured dies
Which of the following types of whole life insurance is single-premium life
paid with one premium at the time the policy is bought?
modified premium whole life
limited pay life
graded premium whole life
single-premium life
Which of the following life insurance products is best decreasing term life insurance
suited for insuring a mortgage or other long-term loan
with the least premium possible?
increasing term life insurance
level term life insurance
decreasing term life insurance
whole life insurance
| Verified | Latest Update 2026
Leave the first rating
Save
Students also studied
Flashcard sets Study guides
C16: The Business of Insurance - Cha... NC Life Insurance Exam Prep Massachusetts Property & Casualty ... AI
Teacher 34 terms Teacher 220 terms Teacher 513 terms Te
m8524209 Preview rtttt444 Preview m8524209 Preview
Terms in this set (397)
All of the following are eligible to purchase a group life Stan and his neighbors are not eligible to purchase group life insurance
insurance policy EXCEPT: because a group cannot be formed solely to obtain life insurance
the Wonderful Widget Company, which employs more
than 200 people
the State Electrical Workers Union
the Retailers Multiple Employer Trust, formed by two
retailers to purchase insurance for their employees
Stan and his neighbors, who form their own group to
buy group coverage at a lower cost than their individual
coverages
With respect to the difference between variable life Variable life policies require a fixed premium payable for the life of the policy
insurance (VLI) and variable universal life insurance while variable universal life permits premium flexibility
(VUL), which of the following statements is correct?
Variable life policies require a fixed premium payable
for the life of the policy while variable universal life
permits premium flexibility.
Only variable life policies allow the policyowner to put
funds in investment subaccounts.
Only variable universal life policies offer a minimum
death benefit.
Only variable universal life is a securities product.
,Jessica, age 25, buys a $100,00 life insurance policy. The graded premium whole life
initial premium is lower than straight whole life rates and
increases each year for the first ten years of the policy
period. After that, the premium levels off and remains at
that amount for the life of the policy. What type of
policy does Jessica own?
indeterminate premium whole life
single premium life
graded premium whole life
20-pay life
Which statement about modified premium whole life It does not build a cash value
insurance is NOT correct?
It does not build cash value.
It charges lower premiums in the early policy years.
At the end of the initial period, the premium increases
and stays at the new level for the life of the policy.
It is good for people who want the guarantees of
whole life insurance and lower early premiums.
A life insurance policy matures or endows when its well before age 120, usually at age 65
guaranteed cash value equals its face amount. With an
endowment contract, when does the policy endow?
when the insured dies
at age 120
after age 120
well before age 120, usually at age 65
A type of permanent life insurance that lets the universal life insurance
policyowner increase, reduce or even skip premium
payments at will without the policy lapsing best
describes:
variable life insurance
universal life insurance
adjustable life insurance
modified premium whole life insurance
Variable universal life combines features of variable life both are considered securities products as well ass life insurance
and universal life. Variable universal life and universal
life are alike in all the following ways EXCEPT:
The premium payments for both are flexible.
Both types of policies let the policyowner choose a
death benefit from two (or sometimes three) options.
For both policies, the insurer deducts insurance and
expenses monthly from the cash value.
Both are considered securities products as well as life
insurance.
, All the following statements about term life insurance a small cash value gradually accumulates while the policy is in force
are correct EXCEPT:
It offers protection for a specified, limited period.
A small cash value gradually accumulates while the
policy is in force.
Upon issue, it is generally less expensive than
permanent insurance of comparable face amount.
It pays a benefit only if the insured dies during the
specified period.
A type of life insurance that covers two people and survivorship life
pays the death benefit only upon the second insured's
death is called
survivorship life
family life
spousal life
joint life
Under a joint life insurance policy, when does the when the first insured dies
insurer pay the death benefit?
when the first insured dies
only when the surviving insured dies
only when the older insured dies
only when the younger insured dies
Which of the following types of whole life insurance is single-premium life
paid with one premium at the time the policy is bought?
modified premium whole life
limited pay life
graded premium whole life
single-premium life
Which of the following life insurance products is best decreasing term life insurance
suited for insuring a mortgage or other long-term loan
with the least premium possible?
increasing term life insurance
level term life insurance
decreasing term life insurance
whole life insurance
