In insurance terminology, this refers to the uncertainty of financial loss.
What is risk?
100
Insurable interest must exist at this point in time in regards to life insurance.
What is at the time of application?
100
This policy is often seen being used to protect the insured's family from losing their home in the event the insured dies before the mortgage is paid off.
What is decreasing term?
100
This life insurance policy clause prevents an insurance company from denying to pay a death claim after a specified period of time.
What is the incontestability clause?
100
This type of annuity would be best suited for the following client: An individual who inherited a large sum of money at age 40 and will use it for retirement at age 60.
What is deferred?
200
These companies are owned by policyowners.
What are mutual companies?
200
Life insurance companies use these tools to predict the life expectancy of the proposed insured.
What are mortality tables?
200
Group plans most commonly use this type of insurance policy.
What is annually renewable term?
200
A death claim is submitted, the insurer discovers the insured understated her age on the application. The insurer would take this action.
What is pay a reduced death benefit based on the insured's actual age?
200
An annuity that guarantees a minimum rate of return is known as this.
What is a fixed annuity?
300
In an insurance contract, this refers to the exchange of something of value by both parties.
What is consideration?
300
If no receipt is issued at the time of application, this must be collected at the time of policy delivery.
What is a statement of good health?
300
Life paid-up at age 65 is an example of this type of policy.
What is a limited-pay life policy?
300
This term refers to the permanent transfer of all of the ownership rights of a life insurance policy.
What is absolute assignment?
300
This type of annuity can begin to pay out one month after it is purchased.
What is single premium immediate annuity?
400
An agent's actions show this type of authority.
What is apparent authority?
400
This premium payment mode would result in the highest overall premium for life insurance.
What is monthly premium payment?
400
In a joint life policy, the premiums are based on this.
What is the average age of the insureds?
400
The insured pays $1,200 annually for life insurance. This year, the insured received $175 in dividends. Her next years premium is $1,025. The insured chose this dividend option.
What is reduction of premium?
400
The period of time when an annuitant contributes to an annuity is known as this.
What is the accumulation period? OR What is the pay-in period?
500
This provision states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost.
What is indemnity?
500
This approach to determining life insurance considers factors such as costs associated with death, education for children, and costs of housing.
What is the needs approach?
500
A policy that allows the beneficiary to collect both the death benefit and cash value upon the death of the insured is known as this.
What is Universal Life; Option B?
500
The acronym WASH stands for these exclusions in a policy.
What are war or military service, aviation, suicide and hazardous occupation or hobbies?
500
Variable insurance and annuities are regulated by these three regulatory bodies.
What is the SEC, FINRA, and the Departments of Insurance?