Life Insurance Policies
How does group credit life differ from individual credit life?
Answer and explanation
Answer: A. Under the group form the lending institution holds one master contract and borrowers receive certificates, whereas individual credit life is a separate policy for each borrower. In both forms the creditor is the beneficiary to the extent of the debt.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, individual and group credit life
More life insurance policies questions
- 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?
- A twenty year level premium term policy reaches its twentieth anniversary and the insured wants to keep the cover. What usually happens to the premium?
- A universal life owner wants to vary the timing and amount of premium payments. Which condition remains essential?
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