Types of Policies
What does consumer guidance say happens to the premium when a term policy is renewed?
Answer and explanation
Answer: B. The NAIC Life Insurance Buyer's Guide states that most term coverage can be renewed at the end of the term even if health has changed, and that if a term policy is renewed the new premiums are higher. The guide also advises asking what the premiums will be before renewing and whether the right to renew is lost at a stated age.Source: NAIC — Life Insurance Buyer's Guide — Buyer's Guide page 5, Renewable term
More types of policies questions
- Most modern fixed annuity contracts allow what penalty-free withdrawal percentage annually during the surrender charge period?
- To what external benchmark is the interest crediting rate of an equity-indexed life insurance policy tied?
- Two business owners need one life policy to provide funds when the first of them dies. Which policy trigger is required?
- Two business partners purchase a joint life policy to fund a buy-sell agreement. Partner A dies. What happens to the policy after the death benefit is paid?
- Under a fixed indexed annuity’s basic index-crediting structure, what interest is added for an index term with a negative result?
- Under IRC § 7702 corridor rules, what must an insurer do if cash value growth in a universal life policy threatens to breach the statutory life insurance definition ratio?
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