Question: C. Decreasing term

Answer:

Question: C. Renews each year with an increased premium

Answer: 2. An annually renewable term policy:

1. Increases in premium based on the insured’s health

2. B. Maintains a level premium each year

3. C. Renews each year with an increased premium

4. D. Increases in coverage each year

5. Question: 3. Which of the following is an example of a limited-pay life policy?

6. A. Straight life

7. B. Life paid-up at age 65

8. C. Renewable term to age 70

9. D. Endowment maturing at age 65

10. Answer: B. Life paid-up at age 65

11. Question: C. Single premium whole life

12. Answer: 4. An insurance policy that only requires a payment of premium at its inception and provides insurance protection for the life of the insured and endows at the insured’s age 100, is called:

13. A. Enhance whole life

14. B. Graded premium whole life

15. C. Single premium whole life

16. D. Straight whole life

17. Question: D. The death benefit can be increased by providing evidence of insurability

18. Answer:

19. Question: A. Remains constant over time

20. Answer: 6. With a traditional whole life policy, the death benefit:

21. A. Remains constant over time

22. B. Increases over time

23. C. Decreases over time

24. D. Becomes pure death protection after 20 years

25. Question: 7. In a single employer group plan, what is the name of a document that is issued to the employer?

26. A. Master contract

27. B. Certificate of insurance

28. C. Certificate of authority

29. D. Employer-insurer contract

30. Answer: A. Master contract

31. Question: 8. Which of the following is true regarding a joint life policy?

32. A. It pays a death benefit after the last insured’s death

33. B. Premium is based on the average age of the insureds

34. C. It is a form of group life insurance

35. D. It is used to offset the liability of the estate tax upon the insured’s death

36. Answer: B. Premium is based on the average age of the insureds

37. Question: 9. The insured is also the policyowner of a whole life policy. What age must the insured attain in order to receive the policy’s face amount?

38. A. 62

39. B. 70 1/2

40. C. 95

41. D. 100

42. Answer: D. 100

43. Question: D. Require evidence of insurability

44. Answer: 10. If an employee wants to enter the group outside of the open enrollment period, to reduce adverse selection, the insurer may:

45. A. Extend the open enrollment period

46. B. Require a higher premium

47. C. Increase medical requirements on existing members

48. D. Require evidence of insurability