Understanding Life Insurance Policies: Key Concepts and Regulations, Exams of Insurance law

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Texas General Lines - Life, accident and

health insurance PRACTICE EXAM

LIFE SECTION 1 - ANS LIFE SECTION 1

1. Sandra Timms, age 27, is advised by her producer to purchase Life insurance to cover a 20-year- amortized $50,000 business-improvement loan. Which of the following plans would adequately protect Ms. Timms at the minimum premium outlay? A- $50,000 Whole Life policy B- $50,000 Level Term policy for 20 years C- $50,000 20 Pay Life policy D- $50,000 Decreasing Term policy for 20 years - ANS D—A $50,000 Decreasing Term policy for 20 years Explanation: The key here is "minimum premium". Term is the most inexpensive type of coverage. Since Sandra's $50,000 loan will be paid off over 20 years and the loan balance will decrease each year, Decreasing Term makes sense. Decreasing Term is not renewable.
2. A 45-year old customer who is seeking to supplement his retirement income at age 65 would not buy a: A- Deferred Annuity B- Equity Indexed Annuity C- Variable Annuity D- Immediate Annuity - ANS B- Equity Indexed Annuity
3. John Livingston owns a 30-Pay Life policy that he purchased at the age of 30. The cash value will equal the face amount of the policy when he reaches the age of:

A- 60

B- 70

C- 100

D- 30 - ANS C- 100

Explanation: Limited Pay Life insurance policies such as Life Paid Up at 65 or 20-Pay Life are simply variations of Whole Life policies. The cash value will equal face amount of the policy (at least) at the maturity of the policy, which is always age 100 on Whole Life policies. These limited-pay policies are designed so that the insured may pay his or her premiums faster and be "paid up" at a certain age. However, just because the premiums are paid up doesn't mean the policy has matured.

4. Which of the following is an example of a Limited-Pay Life policy? A- Universal life B- Whole Life C- Life Paid-Up at Age 65 D- Renewable Term to Age 70 - ANS C- Life Paid-Up at Age 65
5. Which of the following policies provides the greatest amount of protection for an insured's premium dollar as well as some cash accumulation? A- Annuity B- Whole Life C- Term D- Limited-Pay Life - ANS B- Whole Life If we had not mentioned cash accumulation, the answer would have been Term. However, Term has no cash value, so the answer is Whole Life, which is the most inexpensive type of permanent insurance and is required to have a cash value after the third policy year. Although Limited Pay Life is a type of Whole Life, it is incorrect since it is usually quite expensive due to the shortened pay-in period. Annuities have

no cash value except the money the annuitant paid in. Since there is no death benefit, no protection is offered.

6. Which of the following individual policy conversions is usually permitted without any evidence of insurability? - ANS C- Conversion from a Term policy to a Whole Life policy
7. Which of the following is NOT correct regarding Ordinary Whole Life policies? A- The premiums payments are owed annually until you die or reach age 100 B- The cash value grows more quickly in the beginning years of the policy C- Coverage lasts for your own life D- Ordinary Whole Life is a type of permanent insurance - ANS D- Ordinary Whole Life is a type of permanent insurance
8. Which of the following statements is true about the premium payment schedule for a Whole Life policy? A- Premiums are payable for a designated period of time only, after which coverage is no longer provided B- Premiums are payable until the insured's retirement only, after which coverage is continued automatically until the insured's death C- One premium, in the amount of the insured's choice, is payable at the time of application, and the balance of the premiums is deducted from the face amount of the policy at the time of the insured's death D- Premiums are payable throughout the insured's lifetime, and coverage continues until the insured's death - ANS D- Premiums are payable throughout the insured's lifetime, and coverage continues until the insured's death

9. A life insurance policy that covers two parties, but only pays when the last party dies is known as: A- Joint Life B- Contingent Life C- Other insured Life D- Survivorship Life - ANS D- Survivorship Life
10. Which of the following contracts requires that a series of benefit payments be made at specified intervals? A- 20-Pay Life B- Modified Whole Life C- Annuity D- Ordinary Whole Life - ANS C- Annuity
11. If a client wants cash value life insurance with a flexible premium and an adjustable death benefit that will allow the policy owner a choice of various cash value investment options, he should buy: A- Variable Life B- Universal Life C- Adjustable Life D- Variable/Universal Life - ANS D- Variable/Universal Life
12. If a person wants to invest a lump sum in an annuity that may appreciate along with market and economic conditions, they should buy a: A- Flexible premium Annuity B- Fixed Annuity C- Deferred Annuity D- Variable Annuity - ANS D- Variable Annuity

13. You have a client that is a real estate agent. Which of the following types of permanent protection is best for this type of client? A- Variable life B- Universal life C- Survivorship life D- Adjustable life - ANS D- Adjustable life
14. In order to sell variable life insurance you must be registered with which of the following? A- The SEC B- The State C- The NYSE D- The NASD - ANS D- The NASD
15. Which of the following is an example of a Limited-Pay Life policy: A- Traditional Whole Life B- Endowment at 65 C- 10 year Renewable Term Life D- 20-Pay Life - ANS D- 20-Pay Life
16. An insurance producer selling a Variable Annuity whose cash value depends on the performance of an underlying investment account must be registered with: - ANS D- The Financial Industry Regulatory Authority (FINRA, formerly the NASD)
17. A business owner with a fluctuating income who wants a life insurance policy that can be changed to suit economic conditions should buy: A- Variable Life B- Modified Whole Life

C- Adjustable Life D- Interest-sensitive Whole Life - ANS C- Adjustable Life

18. An Annuity is designed to provide which of the following financial features? I. The liquidation of principal and interest II. Favorable tax treatment III. The creation of an estate - ANS B- I and II
19. Which of the following statements about a Renewable Term policy is true? A- It is renewable at the option of the insurance company B- It is renewable at the option of the insured C- It is renewable at the option of the insurance company, with proof of insurability D- It is renewable at the option of the insured, with proof of insurability - ANS B- It is renewable at the option of the insured
20. Most Term Life insurance: A- Is convertible to permanent Whole Life without a physical exam B- Has a guaranteed cash value C- Is renewable with evidence of insurability D- Is renewable to age 100 - ANS A- Is convertible to permanent Whole Life without a physical exam
21. A life insurance policy whose cash value will fluctuate depending upon the performance of a separate account is: A- Limited-pay Life B- Universal Life

C- Ordinary Life D- Variable Life - ANS D- Variable Life

22. A life insurance policy that combines term insurance protection, a flexible premium, and cash value accumulation is: A- Increasing Term Life B- Variable/Universal Life C- Universal Life D- Variable Life - ANS C- Universal Life
23. Which of the following types of insurance policies would provide the greatest amount of protection for a temporary period during which an insured will have limited financial resources? A- Term B- Limited Pay policy C- Whole Life D- Annuity - ANS A- Term
24. At age 30, Tom Morris wishes to purchase a Whole Life policy. His producer explains that he can pay for the policy in several ways. One method is called 20-Pay Life, and another, Straight Life. Tom wishes to know which plan will accumulate cash value at a faster rate in the early years of the policy. Which of the following would be the producer's most appropriate response? A- "20-Pay Life will accumulate cash value faster." B- "The rate of cash-value accumulation depends on the profitability of the insurance company." C- "Straight Life will accumulate cash value faster." D- "Both plans will accumulate cash value at the same rate." - ANS A- "20-Pay Life will accumulate cash value faster." LIFE SECTION 2 - ANS LIFE SECTION 2

1. Which of the following statements about the Reinstatement provision is true? A- It provides for reinstatement of a policy regardless of the insured's health B- It requires the policy owner to pay, with interest, all premiums that are in arrears in order for the policy to be reinstated C- It permits reinstatement within 10 years after a policy has lapsed D- It guarantees the reinstatement of a policy that has been surrendered for cash - ANS B- It requires the policy owner to pay, with interest, all premiums that are in arrears in order for the policy to be reinstated
2. The time period covered by the Free Look provision of a Life insurance contract starts: A- When the insured receives the contract and a "right to look" receipt B- When the contract is received in the agency office and given to the producer C- When the insured receives the contract and makes the first premium payment, if needed D- When the contract is issued and mailed to the agency office from the home office of the insurance company - ANS C- When the insured receives the contract and makes the first premium payment, if needed
3. Dividend projections may be included in a proposal for Life insurance when which of the following is true? A- There is a clear statement that payment of future dividends is not guaranteed B- The applicant has requested that they be included C- The projected amounts do not exceed the dividends previously paid by the same insurance company D- The projected amounts are calculated on the basis of the Commissioners Standard Ordinary Mortality Tables - ANS A- There is a clear statement that payment of future dividends is not guaranteed

4. The Life insurance rider that will pay the insured's premium after a period of disability due to accident or sickness is: A- Guaranteed Insurability B- Accidental Death and Dismemberment C- Waiver of Premium D- Automatic Premium Loan - ANS C- Waiver of Premium
5. Which of the following is a Non-forfeiture Option that provides continuing cash value buildup? A- Extended Term B- Deferred Annuity C- Reduced Paid-Up D- Cash Surrender - ANS C- Reduced Paid-Up
6. A rider that keeps a policy from lapsing due to non-payment of premium by borrowing from the cash value is: A- Reduced Paid-Up Option B- Extended Term Option C- Automatic Premium Loan D- Mode of Payment - ANS C- Automatic Premium Loan
7. Which of the following Settlement Options might provide payments that exceed the proceeds of the policy and the interest earned? A- Interest Only B- Fixed Period C- Life Annuity D- Fixed Amount - ANS C- Life Annuity

8. A client buys a $50,000 Whole Life policy on himself and wants to add $25,000 in Term coverage for his spouse. He should add which of the following riders to his policy? - ANS A- Spousal Rider B- Family Rider C- Other Insured Rider D- Additional Insured Rider
9. All of the following are considered to be owner's rights under a Life insurance policy, EXCEPT: - ANS A- Changing an irrevocable beneficiary B- Changing a dividend option C- Taking a policy loan D- Selecting a settlement option prior to death
10. If the insured dies 5 years after he bought a Life insurance policy and the insurer determines that there was material misrepresentation on his application, they will: - ANS A- Pay the claim B- Pay only a portion of the claim C- Deny the claim D- Deny the claim but refund the premium
11. The life insurance policy provision that prevents the insurer from modifying a policy after it has been issued is the: - ANS A- Incontestability Clause B- Entire Contract Clause C- Consideration Clause D- Insuring Clause
12. Which of the following statements is true about exercising a Guaranteed Insurability option:

I. The new insurance is available at the original issue age rate II. Evidence of insurability is not required III. The insured can exercise the option at any time after the age of 21 IV. The maximum purchase is specified in the contract - ANS A- III and IV B- I and II C- II and IV D- I, II, and III

13. In a policy insuring the life of a child, which of the following allows the premiums to be waived in the event of the death or disability of the person responsible for premium payments? - ANS A- Reduced Paid-Up option B- Payor Benefit Rider C- Waiver of Premium provision D- Reduction of Premium option
14. Which of the following is true about the Misstatement of Age provision - ANS A- It allows the insurer to adjust benefits B- It allows the insurer to change the premium C- It allows the insurer to void the contract D- It allows the insurer to contest a claim during the first 2
15. Which of the following statements about a typical Suicide clause in a Life insurance policy is true? - ANS A- Suicide is excluded for a specific period of years and covered thereafter B- Suicide is excluded as long as the policy is in force C- Suicide is covered for a specific period of years and excluded thereafter D- Suicide is covered as long as the policy is in force

16. A $10,000 Life insurance policy with a Triple Indemnity clause has been in force for three years. The insured is injured in a train wreck and dies in a hospital five months later. The death proceeds payable under the policy would be: - ANS A- $20, B- $ -0- C- $30, D- $10,
17. Grandma owns a policy on her grandchild. Which rider would kick in if Grandma should die tomorrow? - ANS A- Guaranteed Insurability Rider B- Waiver of Premium Rider C- Payor Benefit Rider D- Child Term Rider
18. Dividend projections may be included in a proposal for Life insurance: - ANS A- When there is a clear statement that they are not guaranteed B- Only upon the request of the applicant C- When they are required to be applied to future premiums due D- When past results are used as the basis for future projections
19. What Life insurance policy provision applies if a policy lapsed last year and the insured wants it back? - ANS A- Assignment B- Reinstatement C- Non-forfeiture D- Grace Period
20. A customer buys a $25,000 Life insurance policy with a $25,000 Accidental Death Benefit rider attached. If he dies of cancer, how much will his policy pay? - ANS A- Nothing B- $25,

C- $50,

D- $75,

21. The contingent beneficiary will receive policy proceeds when: - ANS A- No beneficiary has been designated B- The insured pre-deceases all designated beneficiaries C- The primary beneficiary pre-deceases the insured D- The insured pre-deceases the primary beneficiary
22. If the insured understated his age and the error is discovered after the insured's death, the insurance company will: - ANS A- Deny the claim under the Incontestability clause B- Refund all premiums paid plus accumulated interest C- Pay the claim, less a deduction for the amount of the underpaid premium D- Pay the amount that the premium paid would have purchased at the correct age
23. The clause that states the insurer's promise to pay the policy benefits in accordance with the contract's provisions is the: - ANS A- Incontestability Clause B- Insuring Clause C- Beneficiary Clause D- Consideration Clause
24. Which of the following is true about the Insuring Clause? - ANS A- It contains the insurer's enforceable promise to pay covered claims B- It states the policy owner's rights C- It states that the insurer may contest a claim for material misrepresentation D- It requires that the application be attached to the policy

25. A client applied for Life insurance on October 1st. The application was approved and the policy was issued on October 10th. It was delivered to the customer on October 18th. When did the Free Look start? - ANS A- October 31st B- October 18th C- October 10th D- October 1st
26. Which of these is a rider that would ensure you can purchase additional insurance coverage, at specified ages, regardless of health? - ANS A- Payor Benefit Rider B- Guaranteed Insurability Rider C- Waiver of Premium Rider D- Child Term Rider
27. A beneficiary designation that prevents the policy owner from making certain changes in the policy is: - ANS A- Primary B- Irrevocable C- Revocable D- Contingent
28. Margaret May wants to name her husband as the beneficiary of her Life policy; however, she wishes to retain all of the rights of ownership. Mrs. May should name her husband as: - ANS A- Revocable beneficiary B- Irrevocable beneficiary C- Tertiary beneficiary D- Secondary beneficiary
29. On Life insurance, the purpose of the Entire Contract Clause is to: - ANS A- Limit the policy to the contract plus the application, if attached

B- Spell out the rights of the policy owner C- Require that the insurer attach the application to the policy at issue D- Spell out the rights of the beneficiary

30. The Life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the: - ANS A- Misstatement of Age clause B- Insuring clause C- Incontestability clause D- Reinstatement clause
31. The provision in a Life insurance policy that provides protection against unintentional policy lapse is known as the: - ANS A- Automatic Premium Loan provision B- Payor clause C- Waiver of Premium benefit D- Reduction of Premium option
32. The purpose of the Grace Period is to: - ANS A- Give the beneficiary time to prove that insurable interest exists B- Protect the policy owner against unintentional lapse C- Protect the insurer against adverse selection D- Give the insurer time to determine the cause of death
33. Jim gets married and wants to add his new spouse to his existing Life insurance policy. Which rider should he add? - ANS A- Guaranteed Insurability Rider B- Other Insured Rider C- Payor Rider D- Term Rider

34. An insured died during the Grace Period of her Life insurance policy and had not paid the required annual premium. The insurance company is obligated to pay which of the following to the beneficiary? - ANS A- The face amount of the policy less any earned premiums B- The full face amount of the policy C- The cash value of the policy, if any D- A refund of any premiums paid
35. A client buys a Life insurance policy on July 1st and dies by suicide 6 months later. The insurance company will: - ANS A- Deny the claim B- Deny the claim, but refund the premium C- Pay the claim in full D- Pay half of the claim
36. To add coverage for a child to your Whole Life policy you would purchase which of these riders? - ANS A- Payor Benefit Rider B- Guaranteed Insurability Rider C- Waiver of Premium Rider D- Child Term Rider
37. Which of the following statements about the Misstatement of Age provision in a Life insurance policy is true? - ANS A- If the insured's age has been overstated, it provides that a premium refund and the face amount of the policy will be payable B-If the insured's age has been understated, it provides that a death benefit smaller than the face amount of the policy will be payable C- It becomes inoperative after the expiration of the policy's Contestable period

D- It is an optional provision

38. An insurance company will grant an advance from the cash value of a Life insurance policy when the policy owner requests which of the following? - ANS A- An automatic premium loan B- A low-interest dividend loan C- A policy loan D- A loan from Extended Term Insurance LIFE SECTION 3 - ANS LIFE SECTION 3
39. An insured's premium for Life insurance is based mainly upon their: A- Risk classification B- Gender C- Occupation D- Age - ANS A- Risk classification
40. A prospect's statements made in the application for insurance constitute a part of which of the following? A- Subrogation Clause B- Incontestability Clause C- Co-insurance Clause D- Consideration Clause - ANS D- Consideration Clause
41. In the formation of a Life insurance contract, the special significance of a Conditional Receipt is that it: A- Serves as proof that the producer has determined the applicant to be fully insurable for coverage by the insurance company

B- Is intended to provide coverage on a date earlier than the date of the issuance of the policy C- Is given by the producer only to applicants who fully prepay all scheduled premiums in advance of policy issue D- Guarantees the applicant that a policy will be issued in the amount applied for in the application - ANS B- Is intended to provide coverage on a date earlier than the date of the issuance of the policy

4. Life insurance becomes effective when: A- When the insurer receives the application at their home office B- When the conditions in the conditional receipt are satisfied C- The applicant writes the check and receives a conditional receipt D- When the producer signs the application - ANS B- When the conditions in the conditional receipt are satisfied
5. A producer submits a completed and signed application to the underwriter along with the first premium check. After checking the results of the physical exam, the underwriter issues a 'rated' policy. Which of the following will not be required: A- A statement that the applicant's health has not changed since the physical exam B- Additional premium to be collected at policy delivery C- A new completed and signed application D- An explanation of the rating or premium surcharge to the client - ANS C- A new completed and signed application
6. Insurable interest must exist: A- At the time of loss B- In order to be named as beneficiary

C- At the time of application D- Continuously - ANS C- At the time of application

7. All of the following are a part of a Life insurance policy, EXCEPT the: - ANS A- Conditional Receipt B- Incontestability Clause C- Copy of the application D- Insuring Clause
8. Once completed and signed by the applicant, a producer may change an application: - ANS A- With consent of his manager B- If the applicant initials the change C- With the verbal consent of the applicant D- At anytime
9. An applicant has been denied insurance coverage because of information contained in a consumer report. According to the Fair Credit Reporting Act, all of the following statements are true about this situation, EXCEPT: - ANS A- The applicant has the right to obtain a copy of the consumer report directly from an insurance company that used the report B- The reporting agency cannot issue any report containing adverse information about the applicant that predates the report by more than seven years, except in the case of a bankruptcy, which may be reported for a 14-year period C- The applicant has the right to obtain disclosure of the substance of the information in the consumer report from the reporting agency D- The applicant has the right to obtain the identity of other inquirers who have obtained consumer reports on him within the past six months from the reporting agency

10. On May 8th a prospect filled out an application for a life insurance policy but paid no premium. The insurance company approved the application on May 14th and issued the policy on May 15th. The producer delivered the policy on May 26th and collected the first premium. The coverage became effective on: - ANS A- May 26th B- May 8th C- May 15th D- May 14th
11. An insurable interest must exist when: - ANS A- A Life insurance policy is cancelled B- Death benefits become payable C- Policy ownership is transferred D- At all times
12. A producer takes an application from a proposed insured without receiving payment of the first premium. The insurance company issues the policy and, when the producer visits the proposed insured to deliver it, she realizes that the health of the applicant has deteriorated significantly since the application was taken. The producer should: - ANS A- Rate the policy and obtain any additional premium required B- Refuse to deliver the policy or to accept any premium offered C- Obtain the premium from the prospect and send it to the company immediately D- Deliver the policy as it was issued
13. With proper notice and authorization, insurers may report underwriting information that an applicant lists on their application for Life insurance to the: - ANS A- State insurance department B- Fair Credit Reporting Association C- Anyone who requests it D- Medical Information Bureau (MIB)

14. Statements made by an applicant for a Life insurance policy that are supposed to be true are referred to as: - ANS A- Information B- Representations C- Facts D- Warranties
15. A producer completes an application for Life insurance and sends it to the underwriter who approves it and issues the policy. When is coverage effective: - ANS A- Immediately B- When the producer delivers the policy and picks up the premium C- On the date the client signed the application D- On the date the underwriter approved the application
16. If an applicant for a Life insurance policy is found to be a substandard risk, the insurance company is most likely to: - ANS A- Refuse to issue the policy B- Require a yearly medical exam C- Charge an extra premium D- Lower its insurability standards
17. When giving a client a conditional receipt, which of the following is true? - ANS A- You never collect a premium until you deliver the policy B- The coverage will begin at earliest as of the date of application or when the client passes a physical, whichever is later C- Coverage begins as of date of application D- In order for coverage to begin the applicant must pay all premiums
18. If an existing client of a producer wants to buy another Life insurance policy, the producer should: - ANS A- Submit an unsigned application to the insurer referring to existing underwriting information B- Have the customer come in and complete and sign a new application

C- Complete and sign the application on behalf of the customer D- Advise the customer that no physical exam is required since he is an existing client

19. Which of the following is true when the insurer issues a 'rated' policy: - ANS A- Coverage is effective immediately B- It is considered to be acceptance of the risk C- No additional premiums will be due D- It is considered to be a counteroffer
20. A producer sends a completed and signed application along with the check for the initial premium to the underwriter, who notices that the applicant forgot to sign the check. When would coverage start? - ANS A- The date of the conditional receipt B- On the date the application was signed C- When the producer delivers the policy and picks up a signed check along with a Statement of Continued Good Health D- When the underwriter received the application and unsigned check
21. Which federal law governs consumer investigative reports: - ANS A- Telephone Communication Protection Act B- Privacy Protection Act C- Fair Credit Reporting Act D- Employee Retirement Income Security Act
22. If an application for Life insurance is not complete: - ANS A- The insurer will reject it B- The insurer will issue the policy and request additional information C- The insurer will return it to the producer D- The insurer will consider it to be void

LIFE SECTION 4 - ANS LIFE SECTION 4

1. A plan under which the surviving partners of a partnership agree to buy the interest of a deceased partner is known as a: A- Surviving Shareholder plan B- Buy and Sell Agreement C- Key Employee Life policy D- Deferred Compensation plan - ANS B- Buy and Sell Agreement
2. Carl Burk, whose wife is his business partner, buys a Life insurance policy on his wife's life. Because of this third-party ownership, the beneficiary should be the: A- Policy owner's children B- Policy owner's estate C- Policy owner D- Policy owner's wife - ANS C- Policy owner
3. When a company requires that their employees pay part of the premium for the Group Life insurance coverage, it is known as a ___________ group: A- Contributory B- Nonparticipatory C- Participatory D- Noncontributory - ANS A- Contributory
4. Albert Metz, who has $2,000 of Group Life insurance, has just terminated his employment. Mr. Metz has how many days in which to convert his group coverage to individual coverage? A- 28

B- 21

C- 15

D- 31 - ANS D- 31

5. Which of the following is not considered to be a 'qualified' plan? A- IRA B- 403b Tax Sheltered Annuity C- Split Dollar D- Keogh - ANS C- Split Dollar
6. Traditional IRAs have a premature distribution penalty for distributions taken prior to age: A- 55 B- 70 1/2 C- 59 1/2 D- 65 - ANS C- 59 1/2
7. Tim Watson wants to obtain a Life insurance policy on his employee, Mike Carson, and to name Mike's wife, Deborah Carson, as the beneficiary. Signatures of which of the following would be legally required on the application? I. Tim Watson II. Mike Carson III. Deborah Carson - ANS A- I and II B- II and III C- I, II, and III D- I only

8. An insurable interest must exist when: - ANS A- Cash values are borrowed B- Death proceeds become payable C- A life insurance policy is issued D- A policy is surrendered for cash
9. A client with a participating Life insurance policy receives both interest and dividends. What are the tax implications? - ANS A- Neither are taxable B- The interest is taxable, but the dividends are not C- Both are taxable as ordinary income D- The dividends are taxable, but the interest isn't
10. A Life insurance policy of which the cash value is over-funded according to IRS rules is known as: - ANS A- A Universal Life Contract B- A Variable Life Contract C- A Modified Endowment Contract D- A Variable/Universal Life Contract
11. The owner of a business is insured under a $100,000 Key Employee Life policy that contains a Double Indemnity clause and a Suicide clause. The business has paid the annual premium of $2,000. Six months after the inception date of the policy, the insured commits suicide. The insurance company's liability for payment is: - ANS A- $100,000 B- $200,000 C- $ -0- D- $2,000
12. A parent who wishes to have complete control of their son's life insurance policy until the son reaches age 25 can do so through the use of which of the following? - ANS A- Ownership provision