Life Insurance 3
An insurance company is domiciled in Montana and transacts insurance in Wyoming.
Which term best describes the insurer's classification in Wyoming? - answer Foreign -a
foreign insurer is domiciled in one state and transacts in another state
What is domestic insurer? - answer Domiciled and sells in domiciled stated
What is an alien insurer? - answer Domiciled in one country and sells in another country
All other factors being equal, the least expensive first-year premium payment is found in
- answer Annually Renewable Term
What is the purest form of term insurance and how does it work? - answer Annually
Renewable Term
-The death benefit remains level. but the premium increases each year with insured's
attained age
How does a decreasing term policy work? - answer The face amount decreases each
term the premium remains constant throughout the term (yearly)
How does an increasing term policy work? - answer The face amount increase each
term and the premium are constant thru the term
(As the policy is renewed it does increase the next year but remains constant thru the
year)
Which of the following types of policies allows he policy owner to skip premium
payments, provided that there is enough cash value in the policy to cover the premium
amount? - answerUniversal life
Which of the following documents must be provided to the policyowner or applicant
during policy replacement? - answerNotice Regarding Replacement
-This notice must be signed by both the producer and the applicant
What is the purpose of the The Medical Information Bureau? - answerProtects
Insurance companies from adverse selection by high risk persons
(assits underwriters in knowing about any adverse medical information the need to
know in the underwriting process)
In a fixed annuity, which of the following is true regarding the guaranteed interest rate
on the investment? - answerThe annuitant will receive higher of either the minimum rate
or current rate
An insurance company is domiciled in Montana and transacts insurance in Wyoming.
Which term best describes the insurer's classification in Wyoming? - answer Foreign -a
foreign insurer is domiciled in one state and transacts in another state
What is domestic insurer? - answer Domiciled and sells in domiciled stated
What is an alien insurer? - answer Domiciled in one country and sells in another country
All other factors being equal, the least expensive first-year premium payment is found in
- answer Annually Renewable Term
What is the purest form of term insurance and how does it work? - answer Annually
Renewable Term
-The death benefit remains level. but the premium increases each year with insured's
attained age
How does a decreasing term policy work? - answer The face amount decreases each
term the premium remains constant throughout the term (yearly)
How does an increasing term policy work? - answer The face amount increase each
term and the premium are constant thru the term
(As the policy is renewed it does increase the next year but remains constant thru the
year)
Which of the following types of policies allows he policy owner to skip premium
payments, provided that there is enough cash value in the policy to cover the premium
amount? - answerUniversal life
Which of the following documents must be provided to the policyowner or applicant
during policy replacement? - answerNotice Regarding Replacement
-This notice must be signed by both the producer and the applicant
What is the purpose of the The Medical Information Bureau? - answerProtects
Insurance companies from adverse selection by high risk persons
(assits underwriters in knowing about any adverse medical information the need to
know in the underwriting process)
In a fixed annuity, which of the following is true regarding the guaranteed interest rate
on the investment? - answerThe annuitant will receive higher of either the minimum rate
or current rate
