ULT Part 1, Quiz 1

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| By Colleen724

Colleen724

Community Contributor

Quizzes Created: 2 | Total Attempts: 162

Questions: 6 | Attempts: 88 | Updated: Feb 2, 2023

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Questions and Answers

1.

Which kind of notice is sent out 30 days before the premium is due?
- A.
  
  Reminder notice
- B.
  
  Overdue notice
- C.
  
  Initial billing statement
Correct Answer
C. Initial billing statement

Explanation
An initial billing statement is sent out 30 days before the premium is due to inform the recipient about the upcoming payment. It serves as a reminder to the policyholder that the premium payment is approaching and provides details such as the amount due, due date, and payment options. This notice is typically the first communication regarding the premium payment and acts as an initial reminder rather than an overdue notice or a reminder notice.

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2.

Which kind of notice is sent out 6 days after the premium is due?
- A.
  
  Reminder notice
- B.
  
  Overdue notice
- C.
  
  Initial billing statement
Correct Answer
A. Reminder notice

Explanation
A reminder notice is sent out 6 days after the premium is due to remind the recipient that the payment is overdue. This notice serves as a gentle reminder to the individual or organization to make the payment as soon as possible. It is a common practice for companies to send out reminder notices to ensure that their clients or customers are aware of their outstanding payments and to prompt them to take action.

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3.

Which kind of notice is sent out 30 days after the premium is due?
- A.
  
  Reminder notice
- B.
  
  Overdue notice
- C.
  
  Initial statement
Correct Answer
B. Overdue notice

Explanation
An overdue notice is sent out 30 days after the premium is due to remind the recipient that their payment is late. This notice serves as a gentle reminder to the individual or organization to pay their premium as soon as possible to avoid any further consequences or penalties. It is a common practice for insurance companies or other service providers to send out overdue notices to ensure timely payment and maintain a good relationship with their customers.

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4.

An illustration is a tool that can be used to guarantee how long a universal life policy will last if no future premium payments are made.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
An illustration can not answer the question of how long the policy will last, because we don't know how the economy will do in the future. However, an illustration can show the worst-case scenario, by using the guaranteed interest rate.

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5.

Which plans use the insufficiency calculation AV - Loan Balance - Current Surrender Charge? Hint: There is more than one correct answer -- select all that apply. You can use KIWI to answer this question.
- A.
  
  Sun Universal Protector
- B.
  
  LifeMaster 1
- C.
  
  Sun Universal Protector - LP
- D.
  
  PensionMaster 2
Correct Answer(s)
A. Sun Universal Protector
D. PensionMaster 2

Explanation
The plans that use the insufficiency calculation AV - Loan Balance - Current Surrender Charge are Sun Universal Protector and PensionMaster 2.

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6.

A policy's annual report projects how long the policy's current account value would allow the policy to "coast."
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
The statement is true because an annual report of a policy projects the duration for which the policy's current account value can sustain the policy without additional contributions. This projection helps policyholders understand the financial stability of their policy and make informed decisions regarding its continuation.

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Ult Part 1, Quiz 1

Which kind of notice is sent out 30 days before the premium is due?

Which kind of notice is sent out 6 days after the premium is due?

Which kind of notice is sent out 30 days after the premium is due?

An illustration is a tool that can be used to guarantee how long a universal life policy will last if no future premium payments are made.

Which plans use the insufficiency calculation AV - Loan Balance - Current Surrender Charge? Hint: There is more than one correct answer -- select all that apply. You can use KIWI to answer this question.

A policy's annual report projects how long the policy's current account value would allow the policy to "coast."