Chapter 4 Xcel test 1

A securities license is required for a life insurance producer to sell

A. modified life insurance
B. Modified Endowment Contracts (MEC)
C. Variable Life Insurance
D. Universal Life Insurance
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Terms in this set (20)
A securities license is required for a life insurance producer to sell

A. modified life insurance
B. Modified Endowment Contracts (MEC)
C. Variable Life Insurance
D. Universal Life Insurance
C. Variable Life Insurance
A life insurance policy written on one contract for two people in which it is payable upon the first death.

A. Spilt
B. Shared
C. Joint
D. Survivorship
C. Joint
The type of policy which pays on the death of the last person is called

A. Joint Life
B. Survivorship Life
C. Dual Life
C. Shared Life
B. Survivorship Life
A business will typically use which type of life insurance to cover their employees

A. Group Policy
B. Adjustable Life Policy
C. Whole life Policy
D. Endowment Policy
A. Group Policy
A Life insurance policy that has premiums fully paid up within a state time period is called.

A. Stated Payment Insurance
B. Limited Universal Insurance
C. Stated Modified Insurance
D. Limited Payment Insurance
D. Limited Payment Insurance
Index whole life insurance contain a securities component that acts as a(n)

A. Hedge against inflation
B. Premium Stabilizer
C. Means to lowering taxes on earning
D. Incentive to purchase more coverage
A. Hedge against inflation
What is the automatic continence of insurance coverage referred to as

A. Renewal
B. Reinstatement
C. Resumption
D. Renovation
A. Renewal
Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because

A. The (MEC) has tax deductible premiums
B. The (MEC) is considered an illegal product
C. The (MEC) tends to be an investment vehicle
D. The (MEC) does not accumulate cash value
C. The (MEC) tends to be an investment vehicle
Which type of life insurance is normally associated with a Payor Benefit rider?

A. Juvenile Insurance
B. Family Income Insurance
C. Spouse Insurance
D. Term Rider
A. Juvenile Insurance
What is a corridor in relation to a Universal Life Insurance Policy?

A. The gap between the total death benefit and the policy's cash value.
B. The gap between when a claim is filed and when the death benefit is received
C. The amount of interest that has accumulated in the policy's cash value.
D. The point in time when the policy's cash value reaches $0
A. The gap between the total death benefit and the policy's cash value.
A life insurance policy which contains cash value that very according to its investment performance of stocks is called. A. Increasing Term Life B. Modified Whole Life C. Variable Whole Life D. Adjustable Whole LifeC. Variable Whole LifeWhich type of multiple protection policy pays on the death of the last person. A. Joint Life Policy B. Survivorship Life Policy C. Dual Life Policy D. Multiple Life PolicyB. Survivorship Life PolicyAll of these statements concerning whole life insurance are FALSE except A. Policyowner can take out a policy loan up to the face amount B. When a whole life policy is surrendered, income taxes may be owed C. coverage is normally temporary D. The death benefit is not affected by outstanding loansB. When a whole life policy is surrendered, income taxes may be owedWhich of these riders will pay a death benefit if the insured's spouse dies? A. Guaranteed Insurability Rider B. Family Term Insurance C. Family whole insurance rider D. Payor Benefit RiderB. Family Term InsuranceWhich type of policy combines the flexibility of a universal life policy with investment choices? A. Adjustable B. Flexible Universal C. Variable Universal Life Policy D. Modified Universal Life PolicyC. Variable Universal Life PolicyShawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. If Mike dies first, the policy proceeds A. Will no longer provide insurance protection B. Will go to Mike's estate C. Will be divided by probate D. Will not be paid until the last brother dies.A. Will no longer provide insurance protectionLevel premium permanent insurance accumulates a reserve that will eventually A. Equal the face amount of the policy B. Pay a dividend tp the policy owner C. require the policyowner to make periodic withdrawals D. Become larger than the face amountA. Equal the face amount of the policyWhen a decreasing term policy is purchased, it contains death benefit and A. increasing premiums B. level premiums C. decreasing premiums D. variable premiumsB. level premiumsKarissa purchases a 10- year level term life insurance policy that has a death benefit of $200,000. Which of these statements is true? A. The Policy Automatically Converts to the whole life after the 10-year period B. The face amount will remain constant and the premium will increase over the 10- year period C. The premium will remain constant an the face amount will increase over the 10- year period D. The face amount and premium will remain constant over the 10 -year periodD. The face amount and premium will remain constant over the 10 -year periodWhat does the word "level" in Level Term describe? A. The period of coverage B. The face amount C. The premium payments D. The cash valueB. The face amount