T or F
Adjustable is NOT sensitive.
True
T or F
If the agent fails to get the proper signatures, the company could not be held liable for his mistake if the applicant were to die before agent corrects.
False
When you reduce the number of payments made by the insured, their premium will ____.
go down
T or F
Whole life ALWAYS has a lever premium.
True
Provides for the payment of the policy's face amount only if the insured lives to maturity date.
pure endowment
T or F
For a substandard risk, if the applicant were to die before the policy is issued, the policy would not be in effect until acceptance.
True
T or F
For a standard risk given a conditional receipt, it's effective the date of application and if the applicant were to die before the policy were issued, the insurer would pay the death claim.
True
Interest paid on life proceeds or dividends is ____.
taxable
____ refers to a situation where the owner of a life policy is not the insured.
3rd party ownership
Credit life is written to ____.
protect balance of their loans
After a person, with life income only settlement option dies, ____.
no further payments are due from insurer
Face amount on a paid up non-forfeiture option is ____, reduced b/c surrendered early.
less than original policy
Face amount on an extended term non-forfeiture option is ____.
same as original policy
The life income with period certain settlement option would provide ____ income a month than the life income only settlement option.
less
This product was first to take advantage of the equity markets as a hedge against inflation.
variable life
Could be defined as a 1 year renewable term insurance and a cash account realizing current interest rates.
universal life
Based on money purchase concept, allows the insured to adjust the policy face amount, premium and length of protection.
adjustable life
-may discriminate as to who plan covers
-must be written down and explained to its participants
-employer does not receive a tax deduction
non-qualified retirement plans
T or F
Non-qualified retirement plans are not legal if not approved by IRS.
false
Allows for the contingent beneficiary to receive the life insurance proceeds when the primary beneficiary does not live at least 30, 60, 90 days after death from accident.
common disaster provision
____ sets up procedures for consumer reporting agencies to follow in their dealings with business.
fair credit reporting act
People purchase an ____ b/c the cash value increases very rapidly and pays off early.
endowment
Deferred compensation, only given to special people in company, is a good example of ____.
non-qualified retirement benefit