SIE Exam Question 739: Answer and Explanation

Question: 739

Which of the following are basic provisions of a universal life insurance policy?

(1) Flexible death benefit

(2) Flexible premium

(3) Minimum guaranteed cash value

(4) Unbundled structure

• A. (1) and (2) only
• B. (2) and (3) only
• C. (1), (2), and (4) only
• D. (1), (3), and (4) only

Correct Answer: C

Explanation:

Universal life insurance policies have a flexible premium and death benefit, and are said to have an "unbundled structure." They do not have a minimum guaranteed cash value.