Life And Health Chapter 14 Questions With Correct
Answers
Under which of the following circumstances is a person most likely to
be eligible for reinstatement? Correct Answer-Stan surrendered his
Whole Life policy one year ago and opted for the Reduced Paid-Up
Insurance Nonforfeiture Option.
which of the following does not involve the systematic liquidation death
benefit proceeds? Correct Answer-Cash Settlement Option
kobo purchased a whole life policy at age 23. at age 45, she is tired of
paying the premium each month. if she discontinues the payments,
which nonforfeiture option will automatically be used Correct Answer-
extended term insurance
which of the following is the automatic dividend option? Correct
Answer-additional paid-up insurance
which of the following dividend options increases the death benefit at
the lowest cost? Correct Answer-Paid Up Additions Option
an insured wants monthly earning from the death benefit to be paid to a
charity for 10 years and then the balance equally divided among his
surviving family members. the appropriate settlement option is: Correct
Answer-interest only
, sharon has a life policy and has selected a settlement option that will pay
an income to her husband for his life. which settlement option did she
choose? Correct Answer-annuity settlement option
Phil purchased a Whole Life policy. The first year he paid $400 in
premium, the second year he paid $320 in premium, the third year he
paid $338 in premium. What is the most likely explanation for his
fluctuating payments? Correct Answer-He selected the Reduced
Premium Dividend Option.
which is the only one of the three nonforfeiture options that will result in
a Cash value account that will continue to grow? Correct Answer-
reduced paid-up
which of the following dividend options purchases fully paid whole life
insurance on a net single premium basis? Correct Answer-Paid Up
Additions Option
which portion of the accumulate at interest dividend payments would be
subject to taxation? Correct Answer-The interest in the year it was
earned
Which of the following dividend options would be of importance to an
Insured's tax accountant? Correct Answer-accumulate at interest
What are the tax consequences of dividends paid by mutual companies?
Correct Answer-The dividends are not taxable.
Answers
Under which of the following circumstances is a person most likely to
be eligible for reinstatement? Correct Answer-Stan surrendered his
Whole Life policy one year ago and opted for the Reduced Paid-Up
Insurance Nonforfeiture Option.
which of the following does not involve the systematic liquidation death
benefit proceeds? Correct Answer-Cash Settlement Option
kobo purchased a whole life policy at age 23. at age 45, she is tired of
paying the premium each month. if she discontinues the payments,
which nonforfeiture option will automatically be used Correct Answer-
extended term insurance
which of the following is the automatic dividend option? Correct
Answer-additional paid-up insurance
which of the following dividend options increases the death benefit at
the lowest cost? Correct Answer-Paid Up Additions Option
an insured wants monthly earning from the death benefit to be paid to a
charity for 10 years and then the balance equally divided among his
surviving family members. the appropriate settlement option is: Correct
Answer-interest only
, sharon has a life policy and has selected a settlement option that will pay
an income to her husband for his life. which settlement option did she
choose? Correct Answer-annuity settlement option
Phil purchased a Whole Life policy. The first year he paid $400 in
premium, the second year he paid $320 in premium, the third year he
paid $338 in premium. What is the most likely explanation for his
fluctuating payments? Correct Answer-He selected the Reduced
Premium Dividend Option.
which is the only one of the three nonforfeiture options that will result in
a Cash value account that will continue to grow? Correct Answer-
reduced paid-up
which of the following dividend options purchases fully paid whole life
insurance on a net single premium basis? Correct Answer-Paid Up
Additions Option
which portion of the accumulate at interest dividend payments would be
subject to taxation? Correct Answer-The interest in the year it was
earned
Which of the following dividend options would be of importance to an
Insured's tax accountant? Correct Answer-accumulate at interest
What are the tax consequences of dividends paid by mutual companies?
Correct Answer-The dividends are not taxable.
