Answer: Option B is correct
The second statement is true with respect to the ownership of a
life insurance policy.
D) 20-paymen whole me 7) Which of the following statements about the ownership of a life...
14) Which of the following statements about life income settlement options is (are) true?I. Under a joint-and-survivor life income option, payments cease at the death of the second (last) surviving) annuitant,II. Under a life income with guaranteed period, a contingent beneficiary is guaranteed a minimum number of payments regardless of when the primary beneficiary dies.A) I onlyB) II onlyC) both I and II]D) neither I nor II15) Bruce left a question about heart disease blank on his life insurance application...
20) Which of the following statements about life insurance policy loans is (are) true? Interest is not required on a life insurance policy loan, as the policyholder is borrowing his or I. her own money. II. Policy loans must be repaid within 3 years or the policy will lapse. A) I only B) II only C) both I and II D) neither I nor II o annuities?.
Which of the following statements about an insurable interest in life insurance is (are) true? I. It is required of any person named as beneficiary. II. It must exist at the time the life insurance is purchased. OI only Oll only both I and II neither I nor 11 Which of the following statements about an insurable interest in life insurance is (are) true? 1. It is required of any person named as beneficiary. II. It must exist at the...
Which of the following statements about life insurance policy loans is false?A) Loans are only permitted for specific reasons listed in the policy.B) Policy loans may be used to cover premiums using the automatic policy loan provision.C) The policyholder is required to pay interest on a life insurance policy loan.D) Any loan balance remaining at the time of the insured death is deducted from the life insurance proceeds paid to the beneficiary.
14) Which of the following statements about life income settlement options is (are) true? I. Under a joint-and-survivor life income option, payments cease at the death of the first annuitant. II. Under a life income with guaranteed period, a contingent beneficiary is guaranteed a minimum number of payments regardless of when the primary beneficiary dies. A) I only B) II only C) both I and II D) neither I nor II
+) Which of the following statements about wearly renewable tem insurance is are) true. 1. It does not require evidence of insurability for renewal. 11. The rate paid by the insured will increase on each renewal, but the rate schedule is known. A) I only B) II only C) both I and II D) neither I nor II
1. Which of the following statements concerning insurance underwriting is (are) correct? I. Underwriting is the selection and pricing of insurance applications that are offered to an insurer. II. Underwriting attempts to avoid adverse selection by individuals who purchase insurance. A I only B. II only C. Both I and II D. Neither I nor II 2. Which of the following statements concerning modified endowment contracts (MECs) is (are) correct? I. Any policy that is paid up prior to age...
11) Which of the following statements about dividend options is (are) true! ! The interest on dividends left to accumulate with the insurer is not considered to be taxable income. II. Dividends paid on life insurance policies are not taxable for federal income tax purposes A) I only B) II only C) both I and II D) neither I nor II
7) Which of the following statements is true of insurance? A) It has to be paid after the risk has been encountered. B) It can be obtained even if one has no insurable interest in the property being insured. C) It is a means of transferring and distributing the risk of loss. D) It cannot be modified once issued. 8) The ________ is a duty of the insurer to protect the insured against lawsuits or legal proceedings that involve a...
18) Which of the following statements is (are) false concerning settlement options? 1. A straight life annuity provides the highest amount of periodic income of all the life income options. II. The interest only option is the most often used settlement option. A) I only B) II only C) both I and II D) neither I nor II