Fund Life & Health Insurance

Decide whether each question is true or false.

1. With the conversion feature, the policy owner can exchange the term policy for a cash value insurance contract, without evidence of insurability.

2. The cash value of the WL policies stems from the prefunding of WL policies.

3. One of the potential advantages of UL is that policy owners will not easily allow their policies to lapse.

4. Most term policies are non-renewable.

5. All whole life policies involve prefunding of future mortality costs.

6. Adverse selection is when people with insurance may take greater risks because they know they are protected: their behavior changed.

7. Most WL insurance sold worldwide is nonpar.

8. Thefree look policy provision gives the policy owners an unconditional right to return a policy to the insurer within 10 days of its receipt.

9. a material misrepresentation would make the policy contestable even if it is an honest misrepresentation.

10. The endowment-at-age-100 policies refer to those WL policies priced on mortality tables that assume all insureds die by age 100.