Types of Policies
How is interest credited to cash values in an interest-sensitive whole life policy?
Answer and explanation
Answer: B. Interest-sensitive whole life credits interest based on current market rates, but provides a safety net via a guaranteed minimum interest rate.Source: NAIC Buyer's Guide / Pearson Outline S1 — PDF page 5, Interest-Sensitive Whole Life
More types of policies questions
- A married couple buys a survivorship life policy for estate tax planning. The husband dies first. What happens to the policy?
- A one-year renewable term policy states that renewal rights end at age 70. The insured renews at age 69 and reaches 70 during that term. What should the producer explain?
- A parent needs a large fixed death benefit for the next 20 years and places no value on building cash value. Which product most directly fits?
- A policyowner surrenders a 20-year return-of-premium term policy in year 5 and expects the full end-of-term refund. What is the best response?
- A policyowner’s income varies and the owner wants to adjust premium timing within policy limits while keeping permanent coverage. Which product feature most directly addresses that need?
- 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?
590 Texas questions like this one.
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