FLPN 440 Assignment 7-1 Practice Problems #3

25 Points

1. Many individuals term life insurance policies are convertible policies. The convertibility feature does which of the following?

1. Lowers the top premium that may be charged with the policy is renewed.
2. Changes the policy to an annuity at retirement.
3. Permits the policyowner to exchange the individual policy for a group policy.
4. Permits the policyowner to exchange the term insurance for permanent insurance.

2. All the following policy provisions are required by law to be included in a life insurance policy except

1. a grace period provision
2. a suicide provision
3. a reinstatement provision
4. a nonforfeiture provision

3. Which of the following statements concerning universal life insurance is (are) correct?

1. Policyowners must pay a minimum target premium each year
2. At the death of the insured, the death benefit and the cash value can be paid to the named beneficiaries

1. I only
2. II only
3. Both I and II
4. Neither I nor II

4. All the following incidents of ownership in a life insurance policy, provide the rights to, except
   1. Assign the policy as collateral for a loan
   2. Take a policy loan
   3. Receive death proceeds as a named beneficiary
   4. Surrender the policy

5. The rider to a life insurance policy that excuses the policyowner from paying the premium during the insureds disability is referred to as
   1. Accelerated benefits
   2. Disability income
   3. Guaranteed purchase
   4. Waiver of premium

6. If the objective of your life insurance program is to get the greatest death protection for your insurance dollars, you should choose _________________ insurance.
   1. Term
   2. Universal life
   3. Limited Pay Life
   4. Whole Life

7. Variable life insurance policies may be sold without an accompanying prospectus.

True ______________ False________________

8. Charley, a college professor, is a client who often spends the summer in a remote part of the world where mail service is limited. Although he wants to buy a whole life policy with his grandchildren as beneficiaries, he is concerned that the policys protection could lapse if he does not receive a premium notice in time to make payment before the end of the grace period. Which of the following options would address Charleys concerns?
   1. An automatic premium loan option
   2. A late remittance option
   3. A nonforfeiture option
   4. A policy loan option

9. Ordinary life insurance provides protection for a longer period of time than does limited payment whole life insurance.

True ____________ False ___________

10. Most group life coverage is provided without individual evidence of insurability.

True___________ False ___________