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Chaper 11 Insurance and risk management 12) Which of the following statements about re-entry term insurance...

Chaper 11 Insurance and risk management

12) Which of the following statements about re-entry term insurance is true?

A) It permits the coverage to be renewed an unlimited number of times as long as insurability is demonstrated.

B) It permits a refund of premiums paid if the term insurance is renewed a specified number of times.

C) It permits a lower renewal premium if the insured demonstrates insurability.

D) It permits a lapsed whole life policy to be reinstated as term insurance.

18) Which of the following statements regarding convertible term insurance is true?

A) Evidence of insurability must be provided to convert the policy.

B) More term policies are converted using the original-age method than using the attained-age method.

C) The converted coverage has a lower face amount than the term coverage.

D) The annual premium for the cash value coverage is lower if an original-age conversion is used than if an attained-age conversion is used.

44) Which of the following statements about home service life insurance, which evolved over time from a type of life insurance called industrial life insurance, is true?

A) Most policies have a face value exceeding $100,000.

B) Premiums are usually not collected at the insured’s home and are remitted directly to the agent or the insurer.

C) Industrial life insurance is group term insurance coverage marketed to employees at the work site.

D) This popular product accounts for over 40 percent of the life insurance sold today.

56) The difference between the legal reserve of a whole life policy and the face amount of insurance is the

A) cash value.

B) net amount at risk.

C) premium.

D) dividend accumulations.

60) All of the following statements about employer-provided group life insurance are true EXCEPT

A) Individual evidence of insurability, through a medical exam, is usually required.

B) Group life insurance is a common employee benefit.

C) A single contact between the employe

Solutions

Expert Solution

12) Option (c)

It permits a lower renewal premium if the insured demonstrates insurability.

18) Option (c)

The converted coverage has a lower face amount than the term coverage.

44) Option (b)

Premiums are usually not collected at the insured’s home and are remitted directly to the agent or the insurer.

56) Option (b)

Net amount at risk

60) Option (a)

Individual evidence of insurability, through a medical exam, is usually required.

jeff jeffy answered 2 years ago

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