Pre-Licensing
The death protection of component of Universal Life Insurance is always
Annually Renewable Term
Which is the following is not true of Section 1035 Policy Exchanges?
Any exchange made under Section 1035 of the Internal Revenue Code must be completed within 30-days.
Which of the following is NOT true of Section 1035 Policy Exchange?
Any exchange made under Section 1035 of the Internal Revenue Code must be completed within 30-days.
An agent just received his MD Life/Health insurance license. His specialty is selling long-term care policies. In order to satisfy his continuing education requirement, he must do which of the following?
Complete 24-hours of continuing education, 2-hours of long-term care, and 3-hours of ethics, every two years.
Which of the following would NOT be considered rebating?
Giving an applicant a $25 pen with the insurer's logo during the insurance application process.
An insured has a Modified Endowment Contract. He wants to withdraw some money in order to pay medical bills. Which of the following is true?
He will have to pay a penalty if he is younger than 59 1/2 .
Willful violations of insurance laws of this state are considered....
Misdemeanors
Which of the following will insurance companies in MD NOT do when creating advertisements for their products?
Only advertise policies that have more than 3 exceptions. MD sets standards for advertising as a way of protecting the public. The goal is to ensure that advertisements do not mislead purchasers of life insurance.
It is an unfair claim settlement practice and a violation of the Insurance Code for an insurer or nonprofit health service plan to do the following EXCEPT...
Pay a lower adjusted claim, due to the accidental misrepresentation of the proposed insured's date of birth by the agent.
All of the following are true regarding rebates EXCEPT...
Rebates are allowed if its in the best interest of the client.
The premiums paid by the employer in a business life insurance policy are
Tax deductible by the employer.
During the accumulation period in a non qualified annuity, what are the tax consequences of a withdrawal?
Taxable interest will be withdrawn first and the 10% penalty will be imposed if under age 59 1/2 .
A 60-year old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60-days. Which of the following is true?
The amount of the distribution is reduced by the amount of a 20% withholding tax.
Which one of the statements regarding the taxation of MEC Contracts is false?
Withdrawals are not taxable.
A policy owner cancels his life policy but instructs the insurance company to transfer the cash value of his policy to an annuity. This nontaxable transaction is called....
1035 Policy Exchange
Which of the following would be considered an unfair claims settlement practice?
A claims adjuster advises the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered.
If an annuitant dies during the accumulation period, what benefit (if any) will be included in the annuitant's estate?
Accumulated cash value.