FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 19: Mortality Risk Management: Individual Life Insurance and Group Life Insurance

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

True/False

Review LaterAdd Note

Review Later

In life insurance policy, if the insured dies during the grace period, the amount of the premiums past due need not be paid and the entire face amount of the policy will be paid to the beneficiary.

A) True
B) False

Correct Answer

verified

Show Answer

Question 22

True/False

Review LaterAdd Note

Review Later

The purpose of the grace period is to prevent unintentional lapses of life insurance policies.

A) True
B) False

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

The _____ strategy used by some insurers ties the rate of return on cash values to a published index, such as rates on 90-day U.S.Treasury bills or Moody's Bond Index, rather than leaving it to the insurer's discretion and its actual investment portfolio returns.

Payment plans have several methods for death proceeds.In _____ method, there is even distribution of the proceeds over the life of the beneficiary, with continued distribution to his or her beneficiary at the same or reduced level.

Which of the following life insurance policies is characterized by its flexibility?

Which of the following plans in group term life insurance allows employees to increase life insurance based on their individual needs and are subject to insurability evidence to avoid adverse selection?

Which of the following beneficiary designations can be changed only with the consent of the beneficiary?

Current assumption whole life policy is sometimes referred to as interest-sensitive whole life policy because of its participatory investment feature.

Term policies are often not renewable beyond age sixty-five or seventy because of _____ that increases with age.

Single premium life policies are mainly sold as business insurance where there is a need to pay fully for a policy by a certain date, such as the time an employee will retire.

Which of the following statements is true of a variable life insurance policy?

In variable life insurance, if actual investment returns exceed the assumed rate of returns, cash values increase more than assumed, and these increases are used partly to purchase additional death benefits.The additional death benefits are usually in the form of:

In which of the following life insurance policies are cash values guaranteed?

Mortgage protection insurance is a decreasing term insurance.

The accumulation value and cash value of current assumption whole life insurance policies are determined in the same manner as for variable life policies.

In a group term life insurance, the _____ part of the supplemental coverage is for loss of limb or eyesight.

In a one-year term life insurance, an insurer promises to pay $100,000 at the death of each insured who dies during the year.If past experience indicates that 0.1 percent of a group of young people will die during the year, one death may be expected for every 1,000 persons in the group.If a group of 300,000 is insured, what is the premium amount that the insurer must collect per policyowner? (Assume that premiums are based only on morality)

Which of the following best describes unbundling?

_____ life insurance contracts were introduced to the market in 1979 to bolster the profits of stock insurance companies.

Beginning in the 1950s, insurers began to refer to the accumulated funds of level premium life insurance policies as _____ that could meet various savings needs.