Life Insurance Policies
How does fixed indexed life differ from variable life in where the risk falls?
Answer and explanation
Answer: D. Indexed life is a general account product whose credit is linked to an index but protected by a floor, so it needs no securities registration. Variable life invests in separate account subaccounts, exposing the owner to loss and requiring a securities licence.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, indexed and variable life compared
More life insurance policies questions
- A prospect wants permanent insurance with adjustable policy elements and cash value allocated to insurer-managed separate-account investments. Which product is the best fit?
- A renewable level term policy reaches the end of its term and the insured is now in poor health. What does renewability provide?
- A renewable term policy states that renewal rights end at a specified age. The insured reaches that age and wants another term. Which statement is most accurate?
- A surgeon aged forty expects high earnings for twenty years and then a much lower income. Which whole life form fits?
- A term insured becomes uninsurable but wants permanent cash-value coverage during the policy’s conversion period. Which feature can meet that objective?
- A term policyowner exercises a renewal provision after the original term ends. What premium change should the owner generally expect?
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