Fail day 3
The USA patriot act was enacted in
2001
D needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. What kind of policy is needed?
Level term
C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What factor would affect her decision the most?
to cost
A 15-year mortgage is best protected by what kind of life policy?
15-year decreasing term
How long does an individual have to rollover funds from an ira or qualify plan
60 days
Which statement is true regarding a variable whole life policy
A minimum guaranteed Death benefit is provided
A cost of living rider gives the insured
Additional death benefits
To be eligible for social security disability benefits an employee must be unable to
Any occupation
What is considered to be characteristic of an immediate annuity
Benefit payments start within one payment period of purchase
If it's employee shares in the cost of insurance what type of group life insurance would a corporation have
Contributory
A universal life policy is sometimes referred to as an unbundled life policy because the owner can see the interest earned expenses charges and the
Cost of the insurance
Which statement regarding the misstatement of age provision is considered to be true
Coverage will be adjusted to reflect the insured's true age if a misstatement of age is discovered
The combination of whole life and ______ term insurance is referred a family income policy
Decreasing
What type of life insurance has a death benefit that adjust periodically and is written for a specific period of time
Decreasing term
F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule. What kind of policy is needed?
Decreasing term policy
How are surrender charges deducted in a life policy with a rear-end loaded provision?
Deducted when the policy is discontinued
T purchases a $100,000 single premium straight life annuity 5 years ago he has received monthly payments since the inception of the annuity if t dies the insurance company
Does not have to make any further payments
In a life insurance policy which feature states that the policy will not cover certain risk
Exclusion
D owns a whole life policy that was purchased 10 years ago if the premium payment suddenly stops and d takes no additional action witch non forfeited option will the insurer likely proceed with
Extended term
What action should a producer take if the initial premium is not submitted with the application
Forward the application to the insurer without the initial premium
When must insurable interest exist for a life insurance contract to be valid?
Inception of the contract
Who may assign benefits for a group life policy ?
Insured
How are policyowner dividends treated in regards to income tax?
Interest on accumulations is taxed
A policyowner rights are limited under which beneficiary designations
Irrevocable
In an individual retirement account rollover contributions are
Not limited by dollar amount
All these statements concerning settlement options are true except
Only the beneficiary may select
P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to
P only
Which of the following information is not required to be included in a whole life policy
Policy guaranteed dividends tables
The underwriting process involves all of these EXCEPT for
Policy loan
Who has the right to change a revocable beneficiary
Policy owner
Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation?
Policy was returned within the free-look period, premium will be fully refunded
The policy owner is able to choose the frequency of premium payment through what policy features
Premium mode
K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true?
Proceeds will be paid to K's estate if P dies within a specified time
What is the consideration give by an insurer in the consideration clause of a life policy
Promise to pay a death benefit to a named beneficiary
The provision that can be used to put an insurance policy back in force after it has lapse due to nonpayment is called
Reinstatement
What would the Medical Information Bureau (MIB) identify?
Testing positive for marijuana use from a previous screening
Which of the following is true of the owner of an ira names their spouse as beneficiary but then dies before any distributes are made
The account can be rolled into surviving spouse ira
Which statement regarding key employee life insurance is not true
The beneficiary is named by the key employee
The common disaster clause provides that if both the insured and the sole name beneficiary were to die in a common accident witch of the following. Is truw
The clause provides the payment of proceeds to the insured estate
A variable annuity has which of the following characteristics
Underlying equality investment
Which of the following life insurance policies combined term insurance with investment element
Universal life
In order to sell a(n) ______ life policy a producer is required to register with the financial indrusty regulatory authority
Variable
Life insurance immediately create an estate upon the death of an insured witch of the following policy is characterized by a guaranteed minimum premium death benefit
Variable life
Which of the following policies is characterized as a flexible premium and death benefit and allow the policy owner control of the investment aspect of the plan
Variable universal life
A term life policy that have that have the ability to be converted to permanent coverage may due so during a specific time period this conversion period.
Varies according to the contract
What type of insurance offer permanent life coverage with premium that's are payable by life
Whole life
K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective?
The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured
A level premium indicates
the premium is fixed for the entire duration of the contract
Additional coverage can be added to a Whole Life policy by adding a(n)
decreasing term rider
All of these are characteristics of an Adjustable Life policy EXCEPT
face amount can be adjusted using policy dividends
When funds are shifted straight from one IRA to another IRA, what percentage of the tax is withheld?
none