lifein t8 - TEST #1. Scott has an outstanding policy loan....

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TEST #1. Scott has an outstanding policy loan. What will the insurer most likely do? a)Report Scott to the state authoritiesb)Sue Scottc) Cancel his policy d) Charge interest on the loan Policy loans can be repaid at any time, including surrender and death. An insurer can charge interest on outstanding policy loans. #2. Which benefits are offered by the Disability Income Benefit rider that are NOT offered by the Waiver of Premium rider? a)None. These riders serve the same purpose but are given different names because they are included in different types of life insurance policies.b) Payment of a regular income to the insured during the period of disabilityc) Payment of a percentage of medical costs related to the disability d)Payment of a regular income and payment of a percentage of disability-related medical costs during the period of disability The Disability Income Benefit rider waives the policy premiums, just like the Waiver of Premium rider. Unlike the Waiver of Premium rider, it also allows the insured to receive a weekly or monthly income during the disability period. #3. Life insurance may be used to pay state inheritance taxes and federal estate taxes so that it is not necessary to sell off assets from the estate to pay these costs. This is called a) Estate conservation.b)Estate Creation.c) Survivor protection. d)Death benefit. Life insurance may be used to pay state inheritance taxes and federal estate taxes so that it is not necessary to sell off assets from the estate to pay these costs. This is called estate conservation. #4. Which type of life insurance policy generates immediate cash value? a) Single Premiumb)Level Termc) Decreasing Term d)Convertible Term Like other types of whole life policies, Single Premium Whole Life (SPWL) endows for the face amount of the policy if the insured lives until the age of 100. The distinguishing feature of a SPWL is the fact that it generates immediate cash value, due to the lump-sum payment made to the insurer. #5. If an insurance company wishes to order an inspection report on an applicant to assist in the
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lifein t8 - TEST #1. Scott has an outstanding policy loan....

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