Montana Life Review 2
Which of the following riders would NOT cause the Death Benefit to increase? – answer
Payor Benefit Rider
An insured and his wife are both involved in a head-on collision. The husband dies
instantly, and the wife dies 15 days later. The company pays the death benefit to the
estate of the insured. This indicates that the life insurance policy had what provision? -
answer Common Disaster
A producer is helping a married couple determine the financial needs of their children in
the event one or both should die prematurely. This is a personal use of life insurance
known as - answer Survivor Protection
Which of the following is correct concerning the taxation of premiums in a key-person
life insurance policy? - answer Premiums are not tax deductible as a business expense.
Life income joint and survivor settlement option guarantees - answer Income of 2 or
more recipients until they die
Which policy component decreases in decreasing term insurance? - answerFace
amount
Which of the following, when attached to a permanent life insurance policy, allows the
policyowner to customize the policy to provide an additional amount of temporary
insurance on the insured, or allows amounts of temporary insurance to cover other
family members? - answerTerm Rider
Which of the following statements about the reinstatement provision is true? - answerIt
requires the policyowner to pay all overdue premiums with interest before the policy is
reinstated.
Fair Credit Reporting Act - answerregulates consumer reports
An insured purchased a variable life insurance policy with a face amount of $50,000.
Over the life of the policy, stock performance declined and the cash value fell to
$10,000. If the insured dies, how much will be paid out? - answer$50,000
An insured receives an annual life insurance dividend check. What term best describes
this arrangement? - answercash option
Who bears all of the investment risk in a fixed annuity? - answerthe insurance company
, Which of the following is TRUE regarding the annuity period? - answerit may last the
lifetime of the annuitant
An employee quits his job on May 15 and doesn't convert his Group Life policy to an
individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the
following statements best describes what will happen? - answerThe insurer will pay the
full death benefit to the beneficiary.
Which of the following is NOT true of life settlements? - answerthe seller must be
terminally ill
All of the following are true regarding a decreasing term policy EXCEPT - answerThe
payable premium amount steadily declines throughout the duration of the contract.
All of the following statements concerning dividends are true EXCEPT - answerDividend
amounts are guaranteed in the policy.
Which of the following information will be stated in the consideration clause of a life
insurance policy? - answeramount of premium payment
Which of the following determines the length of time that benefits will be received under
the Fixed-Amount settlement option? - answersize of each installment
The death protection component of Universal Life Insurance is always - answerAnnually
Renewable Term
When the insured selects the extended term nonforfeiture option, the cash value will be
used to purchase term insurance with what face amount? - answerEqual to the original
policy for as long as the cash values will purchase.
All of the following are eligible groups under group life insurance EXCEPT -
answerreligious groups
Which of the following is true regarding a nonresident insurance producer license? -
answerThe applicant's home state must license Montana residents.
When issuing group life insurance, an insurer must provide each covered individual with
a(n) - answercertificate of coverage
Which of the following is an example of a producer's fiduciary duty? - answerThe trust
that a client places in the producer in regard to handling premiums.
The paid-up addition option uses the dividend - answerTo purchase a smaller amount of
the same type of insurance as the original policy.
Which of the following riders would NOT cause the Death Benefit to increase? – answer
Payor Benefit Rider
An insured and his wife are both involved in a head-on collision. The husband dies
instantly, and the wife dies 15 days later. The company pays the death benefit to the
estate of the insured. This indicates that the life insurance policy had what provision? -
answer Common Disaster
A producer is helping a married couple determine the financial needs of their children in
the event one or both should die prematurely. This is a personal use of life insurance
known as - answer Survivor Protection
Which of the following is correct concerning the taxation of premiums in a key-person
life insurance policy? - answer Premiums are not tax deductible as a business expense.
Life income joint and survivor settlement option guarantees - answer Income of 2 or
more recipients until they die
Which policy component decreases in decreasing term insurance? - answerFace
amount
Which of the following, when attached to a permanent life insurance policy, allows the
policyowner to customize the policy to provide an additional amount of temporary
insurance on the insured, or allows amounts of temporary insurance to cover other
family members? - answerTerm Rider
Which of the following statements about the reinstatement provision is true? - answerIt
requires the policyowner to pay all overdue premiums with interest before the policy is
reinstated.
Fair Credit Reporting Act - answerregulates consumer reports
An insured purchased a variable life insurance policy with a face amount of $50,000.
Over the life of the policy, stock performance declined and the cash value fell to
$10,000. If the insured dies, how much will be paid out? - answer$50,000
An insured receives an annual life insurance dividend check. What term best describes
this arrangement? - answercash option
Who bears all of the investment risk in a fixed annuity? - answerthe insurance company
, Which of the following is TRUE regarding the annuity period? - answerit may last the
lifetime of the annuitant
An employee quits his job on May 15 and doesn't convert his Group Life policy to an
individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the
following statements best describes what will happen? - answerThe insurer will pay the
full death benefit to the beneficiary.
Which of the following is NOT true of life settlements? - answerthe seller must be
terminally ill
All of the following are true regarding a decreasing term policy EXCEPT - answerThe
payable premium amount steadily declines throughout the duration of the contract.
All of the following statements concerning dividends are true EXCEPT - answerDividend
amounts are guaranteed in the policy.
Which of the following information will be stated in the consideration clause of a life
insurance policy? - answeramount of premium payment
Which of the following determines the length of time that benefits will be received under
the Fixed-Amount settlement option? - answersize of each installment
The death protection component of Universal Life Insurance is always - answerAnnually
Renewable Term
When the insured selects the extended term nonforfeiture option, the cash value will be
used to purchase term insurance with what face amount? - answerEqual to the original
policy for as long as the cash values will purchase.
All of the following are eligible groups under group life insurance EXCEPT -
answerreligious groups
Which of the following is true regarding a nonresident insurance producer license? -
answerThe applicant's home state must license Montana residents.
When issuing group life insurance, an insurer must provide each covered individual with
a(n) - answercertificate of coverage
Which of the following is an example of a producer's fiduciary duty? - answerThe trust
that a client places in the producer in regard to handling premiums.
The paid-up addition option uses the dividend - answerTo purchase a smaller amount of
the same type of insurance as the original policy.
