LIFE EXAM FINAL

An IRA contribution can be made from which of the following?

Cash

An adjustable life policy can assume the form of

Either term insurance or permanent insurance

The premium of a survivorship life policy compared with that of a joint life policy would be

Lower

Which Universal Life option has a gradually increasing cash value and a level death benefit?

Option A

All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT

The policy is owned by the company

When is the earliest a policy may go into effect?

When the application is signed and a check is given to the agent

Which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors?

Life expectancy

In a life settlement transaction, how many days does the owner have to terminate the contract after the date it is executed?

15 days

The owner of a life insurance policy has just completed a life settlement transaction. How many days does he have to rescind the contract?

15 days

If a producer's appointment has been terminated, within how many days must the insurance company notify the Commissioner?

30 days

An insurance adviser's license may be issued to a corporation if the majority of the officers of the corporation

Are found by the Commissioner to be in all respects qualified for licenses as advisers

A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy will

Continue to increase

Which of the following will NOT be an appropriate use of deferred annuity

Creating an estate

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

Extended term

Universal Life insurance policy has two types of interest rates that are called

Guaranteed and Current

A man decided to purchase a $100,000 ART Life policy to provide additional protection until his children finished college. He discovered that his policy...

Required a premium increase each renewal

In any action to recover on an insurance policy, a court may award punitive damages that may not exceed

25% of the claim

Which of the following is used to compare the cost of one life insurance policy against another in order to guide prospective purchasers to policies that are competitively priced?

Cost comparison methods

All of the following are true of annually renewable term insurance EXCEPT

Proof of insurability must be provided at each renewal

What is a specific requirement regarding the number of employees in a SIMPLE plan?

No more than 100 employees

An insured purchased a life policy in 2010 and died in 2017. The insurance company discovers that the insured had concealed information during the application process. What can they do?

Pay the death benefit

Key person insurance can provide protection for all of the following economic losses to a business EXCEPT

Pay the death benefit to the estate of the insured

All of the following are true regarding the waiver of cost of insurance rider EXCEPT

The rider expires when the insured reaches age 60

Under which of the following conditions would life insurance proceeds be taxable by the federal government

If there is a transfer for value

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

As of application date

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?

The insured may choose to convert to term or permanent individual coverage

Which is a primary source of information used for insurance underwriting?

Application

All of the following are true of the Survivorship Life policy EXCEPT

The premium is based on the age of each insured

If a producer has administrative action taken against his license, he must report such action

Within 30 days of the final disposition

Which of the following is a correct statement about annuities?

Fixed annuities do not provide protection against inflation

An example of a limited-pay life policy

Life Paid-up at Age 65

Equity indexed annuities

Seek higher returns

If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?

Fixed period

Which of the following is NOT true regarding the annuitant?

The annuitant cannot be the same person as the annuity owner

In an annuity, the accumulated money is converted into a stream of income during which time period?

Annuitization period

For how long must producers maintain complete records of all complaints

2 years

An insured bought an insurance policy that requires him to pay $150 in premiums on the 15th of each month. He then takes an extended vacation and forgets to pay his premium. Ten days later, his policy is still in effect and has not lapsed. Which policy provision allowed for this?

Grace period

If an annuitant dies before the annuity start date, which of the following is true?

Interest is taxable

Which of the following is called "second-to-die" policy?

Survivorship Life

An Adjustable Life policy owner can change which of the following policy features?

The coverage period

If the insurer does not pay the death benefit to the beneficiary within the required time period, what interest will be assessed on the proceeds?

6%