. Which of the following is TRUE regarding a whole life insurance policy that pays a dividend? When the dividend is paid, it is taxed to the policyholder as an ordinary dividend The dividend is automatically credited against future premiums The dividend is paid directly to the beneficiary on the policy When the dividend is paid, it can be used to purchase additional coverage B. Each employee covered under a group life policy MUST be given: An individual certificate of insurance A certificate of insurance for each family member covered An insurance identification card for each family member covered A copy of the group master contract C. Universal life products are flexible premium policies that are: Interest sensitive Guaranteed issue Non-renewable Term only
A. Which of the following is TRUE regarding a whole life insurance policy that pays a dividend?
When the dividend is paid, it is taxed to the policyholder as an ordinary dividend
The dividend is automatically credited against future premiums
The dividend is paid directly to the beneficiary on the policy
When the dividend is paid, it can be used to purchase additional coverage
B. Each employee covered under a group life policy MUST be given:
An individual certificate of insurance
A certificate of insurance for each family member covered
An insurance identification card for each family member covered
A copy of the group master contract
C. Universal life products are flexible premium policies that are:
Interest sensitive
Guaranteed issue
Non-renewable
Term only
D. Which of the following statements is CORRECT about life insurance proceeds paid to a named beneficiary?
They are exempt from claims by the insurance creditors
They are subject to excise taxes
They are held until the insured’s will is probated
They must be paid in a lump sum
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