Life Insurance

2: With variable whole life policies,
the policyowner may allocate the premium into a sub-account that is held by the
insurance company, called the

6:
Which of the following would NOT be true regarding a $100,000 20-year level
term policy?

8: When would a 20-pay whole life
policy endow?

a After 20 payments

b
In 20 years

c When the insured reaches age 100

d At the insured’s age 65

9: Which of the following best
defines target premium in a universal life policy?

a The maximum amount the policyowner
may pay on a policy

b The minimum amount to make sure
the policy is annually renewable

c The corridor of insurance

d The recommended amount to keep the policy in force
throughout its lifetime

10: Who bears all of the investment
risk in a fixed annuity?

a The annuitant

b
The insurance company

c The owner

d The beneficiary

12: All of the following are true
regarding a decreasing term policy EXCEPT

a All other factors being the same,
it has a lower premium outlay than level term.

b The contract pays only in the
event of death during the term and there is no cash value.

c The face amount of the contract
steadily declines throughout the duration of the contract.

d The
payable premium amount steadily declines throughout the duration of the
contract.