missed questions CHAPTER 4 LIFE
what is the number of credits required for fully insured status for social security disabilitiy benefits
40
which of the following is the required number of participants in a contributory group plan
75%
group life insurance is a single policy written to provide coverage to member of a group. which of the follow concrning group life is correct
100% participation of members is required in noncontributory plans
who is a third party owner
a policy owner who is not the insured
all of the following are true of the federal tax advantages of a qualified plan except
at distribution, all amounts received by the employee are tax free
an employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on
attained age
which of the following would describe a legal document which would dictate whol can buy a deceased partners share of a business and for what amoutn
buy-sell agreement
A key person insurance policy can pay for which of the following?
costs of training a replacment
if an insured worker has earned 40 quarters of coverage, the workers status under social security disability is
fully insured
which of the following is an eligibility requirement for all social security disability income benefits
have attained fully insured status
what is the main purpose of the seven-pay test
it determines if the insurance policy is a MEC
If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?
it is only taxable if the cash value exceeds the amount paid for premiums
which of the following is an IRS qualified retirement program for the self-employed
keogh plan
what is the official name for the social security program
old age survivors disability insurance
traditional IRA contributions are tax deductible based on which of the following
owners income
which of the following is correct concerning the taxation of premium in a key-person life insurance policy
premiums are not tax deductible as a business expense
An IRA purchased by a small employer to cover employees is known as a
simplified employee pension plan
which of the following would be considered a non qualified retirement plan
split-dollar plan
a producer is helping a married couple determine the financial needs to their children in the event one or both should die prematurely. this is a personal use of life insurance known as
survivor protection
the premiums paid by the employer in a nusiness life insurnace policy are
tax deductible by the employer
the advantage of qualified plans to employers is
tax-deductible contributions
all of the following would be different between qualified and nonqualified retirement plans except
taxation on accumulation
a corporation is the owner and benefificary of the key person life policy. if the corporation collects the policy benefit then
the benefit is received tax free
which of the following is an example of liquidity in a life insurance contract
the cash value
all of the following employees may use 403 (b) plan for their retirement except
the ceo of a private corporation
which of the following best describes the tax advantage of a qualified retirement plan
the earnings in a qualified plan accumulate tax deferred
which of the following is incorrect concerning noncontributory group plan
the employees receive individual policies
Who is the owner and who is the beneficiary on a Key Person Life Insurance Policy?
the employer is the owner and the beneficiary
An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?
the insurer will pay the full death benefit from the group policy to the beneficiary
all of the following are true of key person insurance EXCEPT
the plan is funded by permanent isnruance only
which of the following is true regarding taxation of accelerated benefits under a life insurance policy
they are tax free to terminally ill insured
which of the following employees insured under a group life plan would be allowed to convert to individual insurance coverage once the plan is terminated
those who have been insured under the plan for at least 5 years
which of the following is the best reason to purchase life insurance rather than an annuity
to create an estate
which of the following statements regarding the taxation of Modified endowment contracts is false
withdrawals are not taxable
which of the following is not an example of a business use of life insurance
workers compensation
