what type of whole life insurance policies only requires a payment of premium at its inception, and in addition to providing insurance protection for the life of the insured, endows at the insured's age 100
single premium whole life
during partial withdrawal from a universal life policy, what portion, if any, will be taxed
interest earned on the withdrawn cash value
what are the characteristics of the group that underwriters will consider before issuing a group life policy
group's purpose, size, financial strength and turnover
between adjustable life and universal life policies, which one provides more flexible to the policy owner
universal life
what type of whole life insurance policy generates immediate cash value
single premium whole life
what are the living benefits of whole life insurance
loan values
what universal life option has a gradually increasing cash value and a level death benefit
option A
what is the main responsibility for a company's underwriting unit
risk selection
an insured receives a monthly summary for his life insurance policy. He notices that the cash value of the policy is significant lower this month than it was last month. What type of policy does the insured have
variable
what is included in Part 2 of a life insurance application
prospective insured
what type of life insurance offers an applicant a cash value element
permanent insurance (usually, whole life)
what document must a producer provide to the insured during policy replacement
notice regarding replacement
if an insured changes his placement plan from monthly to annually, what happens to the total premium
it will decrease
what are the three main instances when insurable interest exists in life insurance
insuring your own life, the life of a family member, or the life of a business partners or someone who has a financial obligation to the policy owner
mortality tables are used by insurance companies to predict what
life expectancy and health rates for specific groups of individuals
in calculating the amount of the life insurance needed, what is the needs approach based on
the predicted needs of a family after the premature death of the insured
what term describes the fee a person pays an insurance company to receive coverage
premium
at what point does coverage begin when an agent issues a conditional receipt for a life insurance policy
on the date of the application or the date of the medical exam (whichever occurs last)
how does the premium mode affect the otto premium paid for insurance for the new year
higher frequency of the premium payments will result in higher overall premium
what is a blackout period for social security benefits
a period of time during which the surviving spouse does not receive benefits
who is the beneficiary on a key-person life insurance policy
the employer
what type of insurance creates an immediate estate
life insurance
what type of policy issues certificates of insurance to the insurdeds
group policy
who responsible for the contents of insurance advertisements
the insurance company
what document must a producer provide to the insured during policy replacement
notice regarding replacement
who must have insurable interest in the insured
the policy owner
who is a replacing insurer
the company that issues a new policy during policy replacement
what are the three main instances when insurable interest exists in life insurance
insuring your own life, the life of a family member, or the life of a business partners or someone who has a financial obligation to the policy owner
in calculating the amount of life insurance needed, what is the needs approach based on
the predicted needs of a family after the premature death of the insured
what is the purpose of key person insurance
to minimize the risk of a financial loss caused by the death of a key employee
what are illustrations in a life insurance policy
presentations of non guaranteed elements of the policy
when planning for survivor protection in life insurance, what needs to be considered
the insured's current assets, liabilities and survivor's needs
a business is the owner and beneficiary of a key-person life policy When the business collects the policy benefit, how is it taxed
benefit is received tax free
life insurance may be used to pay state inheritance taxes and federal estate taxes eliminating the need to sell assets from the estate. What is this called
estate conservation
what is the purpose of the agent's report during the APPLICATION process
discusses the agent's personal oberservations about the proposed insured that may help in the underwriting process
what type of policy is typically issued without proof of insurability from the insured
group
what is the main propose of the regulation on life insurance policy illustrations
to help the public make educated decisions about buying life insurance
what type of insurance would perform the function of cash accumulation
life insurance
when must insurable interest exist in a life insurance policy
at the time of the application
what is policy replacement
a new policy issued while an existing policy is terminated or reissued with a reduction in cash value
what document describes the specific information about a policy
policy summary
when must the policy summary for a life insurance policy be delivered to the policy owner
at the time of the policy delivery
what are the three factors that determine the premium for a particular life insurance policy
mortality, interest and expense
what is insurance of underwriting
the process of risk selection and classification
an insured receives a monthly summary of his life insurance policy. He notices that the cash value of the policy is significantly lower this month than last month. What type of insured does he have
variable
if someone wants buy a life insurance policy that will provide lifetime protection against premature death, what type of life insurance policy should it be
permanent
what are the personal uses of life insurance
survivor protection, estate creation and conservation, cash accumulation and liquidity
if an applicant for a life insurance policy and the potential insured are two different people, w hat would be the underwriter's main concern
the existence of insurable interest between the applicant and the insured
what does "liquidity" mean for a life insurance policy
available at cash value
if an insured changed his payment plan from monthly to annually, what happens to the total premium
decrease
all factors being equal, which premium payment mode will required an overall higher premium: monthly or annual
monthly