Life Insurance Policies
What is the difference between the guaranteed and the current premium shown for a level premium term policy?
Answer and explanation
Answer: A. The guaranteed column sets the ceiling written into the contract, while the current column reflects what the insurer intends to charge on present experience and may raise up to the guarantee. Risk class and policy year are separate distinctions.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, guaranteed and current term rates
More life insurance policies questions
- A married couple buys a survivorship life policy for estate tax planning. The husband dies first. What happens to the policy?
- A married couple expect estate taxes to fall due only after both have died. Which policy matches that liability?
- 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 carrying two hundred thousand dollars of life insurance applies for cover on a six year old child. What ceiling does section 3207(b) set?
- 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 producer illustrates a fixed indexed life policy using the best index period of the last twenty years. What is the objection?
621 New York questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.