Key Concepts in Life Insurance Policies and Risk Management

PE C3 Question According to the entire contract provision, what document must be made part of the insurance policy? Which of the following types of policies would allow a policyowner to choose a premium amount and payment schedule? What insurance concept is associated with the names Weiss and Fitch? In terms of parties to a contract, which of the following does NOT describe a competent party? Which is not true about beneficiary designations? An Adjustable Life policyowner can change which of the following policy features? What is the benefit of choosing extended term as a nonforfeiture option? When a reduced paid-up nonforfeiture option is chosen, what happens to the face amount of the policy? The risk of loss may be classified as... Which of the following is NOT a type of information that needs to be gathered in order to determine the value of someone's life when using the needs approach? Which of the following features of the Indexed Whole Life policy is NOT fixed? Which type of retirement account does not require the owner to start taking distributions at age of 73? Which of the following statements is TRUE concerning the Accidental Death Rider? Justyne, a widow, is retiring from her job and will soon receive Social Security benefits. Which income period is Justyne about to enter? Which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement and inflation? Illustrations used in the sale of life insurance policies must contain all of the following EXCEPT... Units with the same or similar exposure to loss are referred to as... Answer Copy of the original application. Flexible premium. Guides describing company financial integrity. The person must have at least completed secondary education. The beneficiary must have insurable interest in the insured. The coverage period. It has the highest amount of insurance protection. It is reduced to the amount of what the cash value would buy as a single premium. Pure risk and speculative risk. Estimated longevity. Cash value growth. Roth IRA. It will pay double or triple the face amount. Retirement period. Human Life Value Approach. The insured's financial classification. Homogeneous. Its premium steadily decreases over time, in Which statement is NOT true regarding a Straight Life policy? response to its growing cash value. Which of the following is true about the premium on the children's It remains the same no matter how many rider in a life insurance policy? children are added to the policy. An insured receives an annual life insurance dividend check. What Cash option. term best describes this arrangement? It is a liability insurance company owned by Which of the following is true regarding a risk retention group? its members. Which of the following named beneficiaries would NOT receive the death benefit directly from the insurer in the event of the insured's A minor son of the insured. death? Which is the appropriate action by the insurer if a prospective Return the application to the applicant for insured submitted an incomplete application? completion. It requires the policyowner to pay all overdue Which of the following statements about the reinstatement premiums with interest before the policy is provision is true? reinstated. Which of the following entities will most likely regulate an insurer's The marketing department of the insurance advertisement on a local TV station? company.