Life Insurance Policies
Which is the most common type of group life plan sponsor?
Answer and explanation
Answer: B. The employer-employee group is the principal form, because employment creates a natural group formed for a purpose other than obtaining insurance. Groups assembled around a purchase or a subscription do not meet that requirement.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, employer as plan sponsor
More life insurance policies questions
- An individual purchases a life insurance policy that provides coverage for exactly one year. At the end of the year, the policyowner can renew the coverage without proving insurability, but the premium will increase based on their attained age. What type of policy is this?
- An insured buys convertible term at age 30 and converts it to permanent insurance at age 40. Which age generally determines the new premium?
- An insured’s health deteriorates during a renewable term policy. At the end of the term, which feature is most valuable?
- An insured's health worsens before a renewable term policy expires. The renewal right is still available. Which outcome best reflects that feature?
- An owner aged fifty takes a loan against a single premium whole life policy. What is the tax result?
- An owner converts a term policy and may choose attained age or original age. What is the trade?
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