Insurance Questions
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What provision in a life insurance policy states that the application is considered part of the contract?Application provision policy exclusions provision entire contract provision incontestability provision
Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it?Modified whole life20 pay lifeDecreasing termEndowment
A contract where one party either accepts or rejects the terms of a contract written by another party is called a contract of:Adherence assimilation aleatory adhesion
P owns a $25,000 life policy that pays the face amount to him if he lives to age 70, or to his beneficiary if he dies before age 70. What kind of policy does P on? - straight life - modified life - whole life paid up at age 70 - endowment at age 70
Which of these actions is taken when a policy owner uses a life insurance policy as collateral for a bank loan?Revocable assignment beneficiary change irrevocable assignment collateral assignment
What type of life insurance are credit policies issued as?Whole variable term Universal
The free look provision begins:Upon the date of the sales presentationUpon receipt of the policy by the producerUpon receipt of the policy by the policy ownerUpon the completion of the application
A universal life policy is sometimes referred to as an unbundled life policy because the owner can see the interest earned, expense charges, and the:Inherent riskCommission rateInflation factorCost of insurance
How long does an individual have to roll over funds from an IRA or qualified plan?60 days 90 days 120 days no limit
All of the following are considered to be typical characteristics describing the nature of an insurance contract exceptBilateral unilateral aleatory adhesion
An employee with $25,000 group term life coverage was recently fired. This employees group coverage may be converted to a:$125,000 individual whole life policy $25,000 modified whole life policy $25,000 individual term life policy $25,000 individual whole life policy
Q purchase is a $500,000 life insurance policy and pays $900 in premiums over the first six months. Q dies suddenly and the beneficiary is paid $500,000. This is change of unequal values reflects which of the following insurance contract features?Aleatory adhesion unilateral consideration
Which is true concerning a variable universal life policy?-Policy owner controls where the investments will go and select the amount of the premium payment-Policy owner has no say where the investment won't go back and choose the premium mode-The investment vehicle for this type of policy is held in the insurer's general portfolio-The death benefit can vary but the policy owner has no say in the premium amount paid
A policy loan is made possible by which of these life insurance policy features?Extended term provisionCash value provisionOwners rights provisionConsideration clause
Information obtained from a phone conversation to the proposed insured can be found in which of these reports?Agents reportMIB reportInspection reportAttending physicians report
A cost of living rider gives the insured:Tax incentives monthly income decreasing premiums additional death benefits
Life insurance that covers an insured's whole life with level premiums paid of a limited time is called:Adjustable lifeRenewable termLimited pay lifeJoint life
Which federal law allows an insurer to obtain an inspection report on a potential insured?-medical information bureau act-freedom of information act-fair credit reporting act-medical information act
In an individual retirement account IRA rollover contributions are:Subject to capital gains taxSubject to ordinary income taxPartially limited by dollar amountNot limited by dollar amount
Which of the following life insurance policies combined term insurance with an investment Element? Increasing term lifeDecreasing term lifeUniversal life Graded life