Life Insurance Concepts FINAL EXAM (NE 6000169224)

The Human Life Value concept recognizes which of the following as a type of loss?

Which of these is NOT a standard provision in a life insurance contract?

“Valued contract” means that _____.

The insurer’s obligation to pay claims is conditional upon certain factors, such as _____.

Mutual assent is _____.

Insurable interest _____.

What is the difference between life insurance and other types of insurance?

Which of the following statements best describes concealment?

What is the length of time a person must be gone to be presumed dead?

A suicide clause typically states that the insurer will not pay if the insured commits suicide within _____ of the application date.

The policy beneficiary is defined as ____.

The _____ settlement option permits the death benefit to be distributed in more than one payment of a fixed amount.

A viatical settlement is a _____.

A ______ rider allows the policy to continue without further premium payments if the insured becomes disabled and cannot work.

The accidental death rider mandates that the death occur within _____ days after the accident.

______ pays a death benefit at whichever of two events occurs first — the end of the designated accumulation period or upon the policy owner’s death.

The _____ method of tying investments to portfolio returns uses returns above the target to purchase a single-premium addition to the policy’s face amount.

What is the principal purpose of juvenile insurance?

Insurance premiums must always be adequate, reasonable, and _____.

Which employees are generally eligible for group coverage?

Variable universal life combines the premium flexibility and policy adjustment features of _____ with the investment options of _____ .

Which IRS provision allows the exchange of a policy for a new one (insuring the same person) without taxing earned investment gains?

Which test determines life insurance from MECs?

Financial objectives are either cash objectives or _____.

A(n) ____ is an unincorporated business owned by a single person.

An individual who possesses a unique ability essential to the continued success of a business is called _____.

What is the purpose of key employee insurance?

The process of underwriting consists of which two functions?

The ____ a person, the ____ mortality risk.

What is the most important factor in underwriting?

The gross premium is _____.

Tobacco use _____.

Part one of the application includes what information?

The MIB is:

_____ reflect the extra mortality expected for individuals with the same ratings.

While most anything rated above a Table 16 is uninsurable, most companies will not retain risks rater higher than _____.

What are the two types of reinsurance?

Which of the following roles does the NAIC perform?

No person can act as an agent or broker without first obtaining _____.

What is a misrepresentation?

A tertiary beneficiary is _____.

The _________ option permits the death benefit to be distributed in more than one payment of a fixed amount as originally specified by the policy owner or the beneficiary.

Participating policies grant policy owners the ability to ____ the increased profits of an insurer.

Which benefits rider provides payment of some or all of the death benefit if the insured dies from a specific medical condition?

A limited payment whole life policy remains in full force for the “whole of life,” but premiums are paid for _____.

Employees usually have a(n) _____ period during which they are not eligible for coverage.

At the onset of a universal life policy, the policy owner chooses from ___ death benefit options.

Under _____ and _____ options, every payment is considered to be comprised of principal and interest.

What is the purpose of coinsurance?

______ refers to the amount of insurance that an insurance company is willing to accept in its own account.