Question 391 pts

Select the incorrect choice regarding variable life contracts:

Group of answer choices

They always offset inflation

The value of the investment with the policy could conceivably fall to zero.

They often contain mutual funds as their investment

Flag question: Question 40Question 401 pts

When using the guaranteed insurability rider on a contract, an agent can state that the policyowner is allowed to purchase more insurance on their own life, on certain dates and ages, and without insurability requirements:

Group of answer choices

True

False

Flag question: Question 41Question 411 pts

A Life Insurance Policy Owner may reinstate a policy under what conditions:

Group of answer choices

That reinstatement can only be done within a grace period.

Are found in the reinstatement provision of the policy

Say you can reinstate if past due premiums are paid back with interest within 5 years

Are not normally a part of a policy, they must be requested.

Flag question: Question 42Question 421 pts

The "entire contract" clause of life insurance policies states that the use of evidence is limited to the contract and the attached application in determining the policy's validity.

Group of answer choices

True

False

Flag question: Question 43Question 431 pts

The Free Look provision of life insurance issued in California states that certain conditions exist in order for a policy to be delivered to the insured properly. Which of the following is not correct in determining good delivery?

Group of answer choices

The policy was mailed with a signed delivery receipt

The policy was mailed certified

The policy was hand delivered personally, no receipt of delivery needed.

None of the above

Flag question: Question 44Question 441 pts

The insured cannot borrow against the loan value of the policy without the permission and consent of which of the following?

Group of answer choices

Revocable beneficiary

Irrevocable beneficiary

It doesn't matter what kind of beneficiary is designated. As long as there is enough cash value, the insured can borrow funds without permission from anyone.

Flag question: Question 45Question 451 pts

The Uniform Simultaneous Death Act (survivorship or time clause) was created to address situations in which the beneficiary survives the insured. Which of the following is false?

Group of answer choices

It is a time period after the death of the insured as stated in the policy. The time is always very short

It is also known as the common disaster clause

The act assumes a certain order of death occurs in determining who gets paid the face amount.

Flag question: Question 46Question 461 pts

If the insured of a life insurance policy does not select a settlement option on behalf of the beneficiary, the beneficiary:

Group of answer choices

Must take a lump sum payment

Can choose a settlement since it was not chosen by the insured

Now becomes the new owner and will make premium payments to build tax deferred cash value.

None of the above

Flag question: Question 47Question 471 pts

What recommendation would you give to a client who wants to receive the highest monthly income from a whole life policy purchased many years ago? This client needs an income that cannot be outlived and will not fluctuate monthly.

Group of answer choices

Take all the cash value and buy a good variable annuity

Get a life income with period certain option

Get a fixed period option

None of the above, there is nothing that can accomplish the request.

Flag question: Question 48Question 481 pts

Identify how the cash surrender value of a policy can be used:

Group of answer choices

Buy paid-up insurance in a reduced amount

Buy extended term insurance for a full face amount

Receive cash

All the above are true

Flag question: Question 49Question 491 pts

Utilizing the "extended term option" means taking the cash value and using it as a single premium payment to buy a paid up policy with the same face amount for a specified length of time.

Group of answer choices

True

False

Flag question: Question 50Question 501 pts

A participating policy gives the policy owner the right to receive dividends. These dividends are not guaranteed.

Group of answer choices

True

False