Oklahoma Life, Health, & Accident-Flexible Life

Card Set Information

Author:
hicksmix6
ID:
306076
Filename:
Oklahoma Life, Health, & Accident-Flexible Life
Updated:
2015-08-05 11:06:23
Tags:
Oklahoma
Folders:
Insurance
Description:
L-72 to L-73
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  1. The major difference between Whole Life insurance and Universal Life insurance is:
    a. Whole Life premiums are flexible and Universal Life are fixed
    b. Whole Life premiums are fixed and Universal Life are flexible
    c. Whole Life premiums are tax deductible and Universal Life premiums are not tax deductible
    d. Whole Life premiums are not tax deductible and Universal Life premium are tax
    b. Whole Life premiums are fixed and Universal Life are flexible
  2. Which of the following life insurance policies places the risk of investment perfomance upon the insured?
    a. Universal Life
    b. Variable Life
    c. Whole Life
    d. Term Life
    b. Variable Life
  3. Which of the following statements regarding Universal Life is true?
    a. cash value, mortality costs, and insurer expenses are bundled
    b. policy requires level premiums for the life of the policy
    c. policy consists of annually renewable term insurance and cash account
    d. always provides a level death benefit
    c. policy consists of annually renewable term insurance and cash account
  4. The type of life insurance policy where the cash values are invested in securities such as mutual fund products is:
    a. Variable Life
    b. Universal Life
    c. Whole Life
    d. Term Life
    a. Variable Life
  5. All of the following regulate the sale of variable products EXCEPT?
    a. Securiteis and Exchange Commission (SEC)
    b. Internal Revenue Service (IRS)
    c. Oklahoma Insurance Department (OID)
    d. Financial Industry Regulatory Authority (FINRA)
    b. Internal Revenue Service (IRS)
  6. Regarding a Universal Life insurance policy, all are flexible EXCEPT?
    a. death benefit
    b. tax rates
    c. premiums
    d. interest rates
    b. tax rates
  7. What is the interest rate credited to a universal life policy that is guaranteed for a period of time and then may fluctuate?
    a. current interest
    b. guaranteed
    c. assumed interest rate
    d. maximum rate
    a. current interest
  8. In a Straight Life Policy which of the follwoing non-forfeiture options has the highest death benefit?
    a. cash surrender
    b. reduced paid up
    c. dividend option
    d. extended term
    d. extended term
  9. Which of the following is true about Variable Life?
    a. return is not guaranteed
    b. return is guaranteed
    c. producer decides where the value is invested
    d. insurance company decides where the value is invested
    a. return is not guaranteed
  10. All of the following are true regarding the withdrawal of cash value deposits from a Universal Life insurance policy, EXCEPT?
    a. withdrawal of deposits are not taxable
    b. withdrawal of deposits are never required to be repaid
    c. withdrawal of deposits are taxed on a First In-First Out method
    d. withdrawal of deposits are determined by the beneficiary
    d. withdrawal of deposits are determined by the beneficiary
  11. Regarding a Universal Life policy, the rate of cash value increase is:
    a. based on the non-forfeiture values in the policy
    b. based on the performance of the separate account
    c. guaranteed at a minimum rate
    d. guaranteed at a minimum rate but may earn excess interest above the guarantee
    d. guaranteed at a minimum rate but may earn excess interest above the guarantee
  12. The policy owner would know the actual cost of the policy including moratlity, interest, and administration on all of the following policies, EXCEPT?
    a. universal life
    b. variable life
    c. whole life
    d. variable universal life
    c. whole life

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