Variable Universal Life Insurance: Sales Quiz!
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- 1.
Which carriers offer a true guaranteed VUL product?
- A.
Pacific Life and AIG
- B.
Hancock, AIG and Protective
- C.
Hancock, Lincoln and Prudential
- D.
Lincoln and Pacific Life
Correct Answer
C. Hancock, Lincoln and PrudentialExplanation
Hancock's VUL Protector has an underlying guarantee to age 90, even with 0% market return. Lincoln's VULone is guaranteed to age 100, even with a 0% market return. Prudential's VUL Protector typically endows at 100, but can be solved for a no-lapse guarantee for any age 100 and over.Rate this question:
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- 2.
Which carrier's GUL product offers a return of premium at years 20 and 25?
- A.
AIG
- B.
Prudential
- C.
Protective
- D.
Lincoln
Correct Answer
A. AIGExplanation
AIG's Secure Lifetime GUL offers a 50% ROP at year 20, and 100% ROP at year 25. The ROP is capped at 40% of the death benefit.Rate this question:
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- 3.
GUL policies within Edward Jones MUST BE guaranteed at least to what age?
- A.
Age 90
- B.
Age 95
- C.
Age 100
- D.
Age 105
Correct Answer
C. Age 100Explanation
All GUL policies within EDJ must be guaranteed at least to age 100.Rate this question:
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- 4.
Check the boxes for the two carriers that offer a term or term-like product, where the premium stays the same when the term is over?
- A.
Lincoln
- B.
AIG
- C.
Pacific Life
- D.
Protective
Correct Answer(s)
A. Lincoln
D. ProtectiveExplanation
Lincoln and Protective both keep the premium level after the term is up. The death benefit decreases at this time. Lincoln's premium remains level for just a few years after the term; Protective's remains the level until the DB falls to $10k.Rate this question:
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- 5.
Please check the boxes for all of the carriers that offer a 4% or higher chronic illness/LTC rider. (Please check the box even if that carrier has only one product that offers the 4%or higher.)
- A.
Lincoln
- B.
Protective
- C.
Pacific Life
- D.
Prudential
- E.
John Hancock
- F.
AIG
Correct Answer(s)
B. Protective
C. Pacific Life
D. Prudential
E. John Hancock
F. AIGExplanation
Protective, Hancock, and AIG all allow for 4% or higher on GUL and VUL.
Prudential offers 4% on their GUL only.
Pac offers their new LTC rider on their VUL only, which allows for 2 or 4%.
Lincoln offers 2% only on GUL and VUL.Rate this question:
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- 6.
Regarding each carrier's chronic illness/LTC riders, please check the boxes for those that require the condition to be deemed permanent.
- A.
AIG - Accelerated Access Solution
- B.
John Hancock - LTC rider
- C.
Lincoln - LifeEnhance
- D.
Protective - ExtendCare
- E.
Prudential - BenefitAccess rider
- F.
Pacific Life - Premier Living Benefits rider
- G.
Pacific Life - Premier LTC rider
Correct Answer(s)
C. Lincoln - LifeEnhance
D. Protective - ExtendCare
E. Prudential - BenefitAccess rider
F. Pacific Life - Premier Living Benefits riderExplanation
PacLife's new LTC rider, Hancock's rider, and AIG's rider do not require the qualifying condition to be deemed permanent. All other LTC/chronic illness riders do.Rate this question:
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- 7.
Are there any chronic illness benefits available on Survivor policies?
- A.
Yes
- B.
No
Correct Answer
A. YesExplanation
Pacific Life offers a chronic illness benefit (Premieron their survivor policy, but it can only come into play on an individual basis for the surviving person.Rate this question:
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- 8.
In order to shop a case via Protective Distributors, the client must have been given at least which table rating?
- A.
Table 2/B or worse
- B.
Table 3/C or worse
- C.
Table 4/D or worse
- D.
We can only shop cases if they applied at nontobacco and come back at tobacco
Correct Answer
C. Table 4/D or worseExplanation
In order to shop a case, the client must be rated table 4 or worse, declined for the LTC rider, or rated tobacco unexpectedly.Rate this question:
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- 9.
What is the minimum policy size for an informal inquiry?
- A.
At least $1M in coverage, or annual premium of at least $5k
- B.
At least $2M in coverage, or annual premium of at least $10k
- C.
At least $5M in coverage, or annual premium of $10k
- D.
We can do an informal inquiry on any size case.
Correct Answer
C. At least $5M in coverage, or annual premium of $10kExplanation
A true informal inquiry will involve the insurance company requesting APS and medical records for the client. For this reason, the case must be at least $5M in death benefit, or $10k in annual premium.Rate this question:
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- 10.
Each carrier offers a different Intent To Buy system. Which type of application CANNOT be entered via any carrier's ITB?
- A.
Replacement of term coverage
- B.
1035 exchange
- C.
New policy with no replacement/change
Correct Answer
B. 1035 exchangeExplanation
ITB systems will allow you to enter term and UL policies (some will allow VUL) that will not result in a replacement of a permanent policy. Any replacement of permanent coverage, or any 1035 exchange, must be completed via a paper application.Rate this question:
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- 11.
VUL policies/illustrations within Edward Jones must do what at age 100?
- A.
Endow
- B.
Show $0 in cash value
- C.
Be guaranteed to 100 at 0% return
- D.
Offer a return of premium
Correct Answer
A. EndowExplanation
Per EDJ guidelines, VUL policies must endow at age 100.Rate this question:
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- 12.
If my client chews tobacco, which carriers will still be able to rate him a non-smoker on a permanent policy? (check all that apply)
- A.
AIG
- B.
Hancock
- C.
Lincoln
- D.
Prudential
- E.
Pacific Life
- F.
Protective
Correct Answer(s)
B. Hancock
C. Lincoln
D. Prudential
E. Pacific LifeExplanation
Any tobacco use with AIG or Protective is considered smoker/tobacco rates. With the other carriers, non-cigarette tobacco use can be rated nonsmoker on permanent policies.Rate this question:
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- 13.
Who can help you facilitate an informal inquiry or quick-quote?
- A.
Jim Wagner
- B.
Wendy Arther
- C.
Ben Robertson
- D.
Kelly Hutchinson
Correct Answer
B. Wendy ArtherExplanation
Wendy Arther is our underwriting liaison and will assist with informal inquiries and quick-quotes.Rate this question:
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- 14.
True or false: The John Hancock LTC rider is capped at the IRS per diem limit.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The John Hancock rider falls under a different tax code than the other riders, and is not bound by the IRS per diem limit.Rate this question:
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- 15.
True or false: The AIG return of premium option is capped at 40% of the death benefit.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The AIG ROP option will only return 40% of the death benefit back to the client if they elect the ROP. For example, if a policy is for $100k, the client will only be able to receive $40k in premium, even if they have paid $70k into the policy.Rate this question:
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- 16.
Which carriers offer a 25-year policy?
- A.
AIG
- B.
Protective
- C.
Hancock
- D.
Pacific Life
Correct Answer(s)
A. AIG
B. ProtectiveExplanation
Protective is the only carrier that offers a 25-year policy.Rate this question:
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- 17.
What is the highest age that we can offer a chronic illness/LTC rider?
- A.
70
- B.
75
- C.
80
- D.
85
Correct Answer
D. 85Explanation
Protective's Preserver II will offer the LTC rider up to age 85.Rate this question:
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- 18.
Not including the Protective Preserver II SPVL, what is the lowest face amount we can specify on permanent policies?
- A.
$25,000
- B.
$50,000
- C.
$100,000
- D.
$250,000
Correct Answer
A. $25,000Explanation
The Protective ProClassic is the only product on our platform that can offer $25k. Several other carriers/products will offer as low as $50k.Rate this question:
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- 19.
What is the lowest face amount we can offer on a term policy?
- A.
$25,000
- B.
$50,000
- C.
$100,000
- D.
$250,000
Correct Answer
C. $100,000Explanation
All term policies other than Lincoln have a minimum face amount of $100k. Lincoln's minimum is $250k.Rate this question:
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- 20.
Some carriers offer a TeleApp option. What does this mean?
- A.
TeleApp is another name for Intent-to-Buy. There is no paperwork for a TeleApp.
- B.
TeleApp is a shortened form of the application. If additional forms are needed, the carrier will request them from the client once the TeleApp is received.
- C.
TeleApp is an application done completely over the phone. The carrier will then send the paperwork to the FA to complete with the client.
- D.
TeleApp is another name for a full paper application. All forms are signed and submitted at once.
Correct Answer
B. TeleApp is a shortened form of the application. If additional forms are needed, the carrier will request them from the client once the TeleApp is received.Explanation
TeleApp is a way to begin the process without submitting a full, long-form paper application. If additional forms are needed for underwriting, the carrier will reach out to the FA/client to obtain them. This application method will require a phone interview and exam.Rate this question:
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- 21.
Which carrier offers a Quit Smoking Incentive?
- A.
AIG
- B.
Protective
- C.
Pacific Life
- D.
Hancock
Correct Answer
D. HancockExplanation
John Hancock offers a quit smoking incentive. A client who is a smoker can be issued a nonsmoker policy: At some point during the first 3 policy years, they must prove (via negative urine test) that they are no longer smoking. This will allow them to keep the nonsmoker rating.Rate this question:
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- 22.
What is the highest rate of return we are allowed to illustrate for VUL cases, per Edward Jones guidelines?
- A.
6% as long as all funds are allocated to bonds only, otherwise 5%.
- B.
7% if all funds are allocated to a fixed account, otherwise 10%.
- C.
8% if all funds are allocated to aggressive portfolios, otherwise 7%
- D.
9% if variable UL, 10% if indexed UL
Correct Answer
C. 8% if all funds are allocated to aggressive portfolios, otherwise 7%Explanation
Edward Jones does not allow VUL illustrations to reflect over a 8% market return, but if an 8% return is utilized, the funds must be allocated to aggressive portfolios only. Otherwise, a 7% return is used.Rate this question:
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- 23.
Every carrier has a separate VUL that is used specifically for LIRPs.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Some carriers use only one VUL product for both death benefit solves and LIRPs.Rate this question:
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- 24.
Which of the Hancock portfolios are NOT approved in Edward Jones?
- A.
Lifestyle MVP funds
- B.
Lifestyle PS funds
Correct Answer
A. Lifestyle MVP fundsExplanation
Lifestyle MVP funds are not approved for use within Edward Jones.Rate this question:
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- 25.
Explain Pacific Life's PPT (Planned Performance Tracking) tool do?
- A.
PPT allows for additional insurance to be purchased on inforce policies.
- B.
PPT is the same as Protective's Defined Objectives.
- C.
PPT is another name for their social security tool.
- D.
PPT is a website that allows FAs to track inforce policies, set reminders to generate inforce illustrations, and generally maintain an inforce policy.
Correct Answer
D. PPT is a website that allows FAs to track inforce policies, set reminders to generate inforce illustrations, and generally maintain an inforce policy.Explanation
PPT is a website that allows FAs to track inforce policies, set reminders to generate inforce illustrations, and generally maintain an inforce policy.Rate this question:
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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Apr 21, 2022Quiz Edited by
ProProfs Editorial Team -
Dec 08, 2016Quiz Created by
Dana
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