Universal Life Insurance Overview FINAL EXAM (GA 49894) Copy

Universal life is a _____ life insurance policy.

The frequency and amount of universal life premiums are controlled by the _____ after the first year.

Which of the following is a feature of a universal life policy?

A universal life policy face amount can be increased:

You may increase the face amount of a universal life policy at any time but only with:

Which universal life death benefit option has a generally decreasing risk amount?

Death benefit Option A provides for:

Which of the following pertains to universal life death benefit Option B?

Death benefit Option B causes the net amount at risk to:

Choosing death benefit Option B will automatically:

Death benefit _____ offers an increasing death benefit that is comprised of the policy’s specified amount plus the aggregate premiums paid for the policy.

Mortality charges in a universal life insurance policy are based upon the age, gender and _____ of the insured as well as the amount at risk.

The mortality charge associated with a universal life policy is deducted from the:

When universal life loan repayments are made by a policy owner:

Expense charges may:

Back-end expense loads are usually deducted from the _____ when a universal life policy is surrendered.

The guaranteed interest crediting rate in a universal life policy:

The lowest interest rate that can be credited to the cash value in a universal life insurance policy is called

What interest crediting rate is specified in the universal life contract?

Which of the interest rates may be adjusted by the agent when requesting a universal life illustration?

The use of the _____ rate of interest in a universal life policy illustration is designed to illustrate policy performance that may be more realistic to the insured.

The universal life assumed interest rate is used for:

Which of the following is NOT an interest crediting rate associated with a declared-rate universal life insurance policy?

The universal life policy cash value will earn interest at the rate set by the company. This statement describes the:

What is the formula to calculate the universal life policy net amount at risk for both death benefit Options A and B?

If a policy owner withdraws funds from his or her universal life policy’s cash value:

A(n) _____ reduces the universal life death benefit.

A partial surrender of a universal life policy is also called a:

A cash value withdrawal is also known as a:

The growth of the cash value in universal life insurance is:

One of two tests must be passed to allow a universal life policy to be taxed as insurance rather than as an investment. They are the Guideline Premium Test and Cash Value Corridor Test or the _____ Test.

A minimum risk corridor must be maintained between the universal life cash value and the _____ in order for the policy to be considered life insurance.

Cash value withdrawals from a universal life insurance policy that is not a MEC receive ____ tax treatment.

In what year was variable life insurance introduced in the U.S. insurance marketplace?

Which of the following is NOT in the control of a VUL policy owner?

Which of the following VUL characteristics is different in a declared-rate universal life insurance policy?

What must the insurer normally establish in order to facilitate the policy owner’s investment of premiums in a VUL policy?

Which of the following does NOT normally differentiate one variable sub-account from another in the VUL separate account?

Which of the following is NOT a type of variable sub-account available to a VUL policy owner in which to invest premiums?

Which of the following bond portfolios would usually NOT be offered as a variable sub-account in which policy owners may invest VUL premiums?

When does a VUL policy owner normally choose an initial premium allocation?

How are gains in variable sub-accounts treated for tax purposes when a VUL policy owner transfers existing cash value from one variable sub-account to another?

In a VUL policy the ______ bears the investment risk insofar as premiums are allocated to the separate account, and the _____ bears the insurance risk.

The risk that the group of lives that an insurer has insured under a VUL policy will not survive as long as expected is covered through the:

The risk that the cost of issuing and administering the VUL policies will exceed estimates is covered by the insurer through its imposition of:

M&E risk charges are deducted by the insurer:

Which of the following special rights is NOT enjoyed by a VUL policy owner?

What special VUL policy owner right is the result of VUL policies’ differing from traditional life insurance policies with respect to guarantees?

For how long does the VUL policy owner’s conversion right extend?

By using _____ an investor may experience an average share cost that is lower than the average share price in a fluctuating market.