AD Banker Comprehensive Practice Exam

Which of the following can be listed on an illustration?

1. The insurer's name, producers name, address, and the policy generic name

2. The proposed insured's name, age, gender, and the initial death benefit

3. All of the answers listed

4. The dividend option selected or any nonguaranteed elements

The correct answer is: All of the answers listed

An illustration in the context of insurance policy documentation serves as a visual representation of the policy's features, benefits, and values over time. It is crucial for helping prospective policyholders understand the future performance and provisions of the policy. The correct answer encompasses all listings that can typically be included in an illustration. Including the insurer's name and address, along with the producer's name and the policy's generic name, helps establish the parties involved and ensures that the information is clearly attributed. Additionally, listing the proposed insured's details, such as age and gender, is necessary for accurately illustrating the policy as the values are often influenced by these factors. Furthermore, including the initial death benefit is essential since it highlights the primary purpose of life insurance – providing a financial benefit upon death. Incorporating information about selected dividend options or any nonguaranteed elements further enhances the illustration's utility by disclosing how these choices impact the policy's performance, thus allowing potential policyholders to make informed decisions. Demonstrating transparency and clarity in all these aspects makes the illustration a complete and useful tool. Consequently, since all options provided together convey relevant information, the inclusion of each item demonstrates that the comprehensive answer accurately reflects what can be listed on an illustration.