Primerica pt. 4

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In the state of Illinois, a viatical settlement contract must contain an unconditional right to cancel. How long does this right remain in effect?

30 days from the date the contract is executed

How long must an insurer's advertisement be kept on file?

4 years

The termi "illustration" in a life insurance policy refers to

A presentation of non guaranteed elements of a policy

Insurance policies are not drawn up through negotiations, and an insured has little to say about the provisions. what contract characteristics does this describe?

Adhesion

Who can make a fully deductible contribution to a traditional IRA?

An individual not covered by an employer- sponsored plan who has earned income

An insirance contract requires that both the insured and insurer meet certain conditions in order for the contract to be enforceable. What contract does this describe?

Conditional

An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. What contract characteristic does this describe?

Conditional

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT

Conditions

Which is TRUE about the cash surrender nonforfeiture option?

Funds exceeding the premium paid are taxable as ordinary income

When would a misrepresentation on the insurance application be considered fraud?

If it is intentional and material

If a license charges any fee separate from a commission off of the insured's premium, and if the fee exceeds 10% of the premium's value, what must the license obtain?

Insured's signature

When a beneficiary receives payments consisting of both principal and interest portions, which parts are taxable as income?

Interest only

Which of the following is NOT true regarding a Premium Fund Trust Account?

It can be used as a claim payment account

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. What is the company guilty of?

Misrepresentation

Which of the following is NOT true regarding policy loans?

Money borrowed from the cash value is taxable

which of the following is another term for the accumulation period of an annuity?

Pay- In Period

Which of the following is correct concerning the taxation of premiums in a key- person life insurance policy?

Premiums are not tax deductible as a business expense

The Federal Fair Credit Reporting Act

Regulates consumer reports

Which of the following best details the underwriting process for life insurance

Selection, classification and rating of risks

A producer is helping a married couple determine the financial needs of their children in the event one or both die prematurely. This personal use of life insurance is

Survivor protection

All of the following are correct regarding Misrepresentation EXCEPT

The fines for misrepresentation is $50 to $1,000

An applicant recieves a temporary insurance producer license. After 80 days, the owner of the insurance company decides to sell the business. Which of the following is true?

The license will automatically terminate

Which of the following individuals must have insurable interest in the insured?

The policyowner

Under a Simple Plan, which of the following is TRUE regarding taxation on both contributions and earnings?

They are tax deferred until withdrawn

What is the purpose of a fixed- settlement option?

To provide a guaranteed income for a certain amount of time

If an insurance company makes a statement that it's policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

Unfair Trade practice

If only one party to an insurance contract has made legally enforceable promise, what kind of contract is it?

Unilateral

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

as of the application date

Why is an equity indexed annuity considered to be a fixed annuity?

it has a guaranteed minimum interest rate

Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must

respond to the consumers complaint

Within how many days may a person who is being examined by the Director for nonfinancial business practices request a hearing after receiving the examination report?

10 days

An Internal Revenue Code provision that specifically provides for an individual retirement plan for public school teachers is a(n)

403 (b) Plan (TSA)

if a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days

Each year a license viatical settlement provider must file with the Director a

Annual Statement

A Universal Life Insurance Policy is best described as a

Annually renewable term policy with a cash value account

Employer Contributions made to a qualified plan

Are subject to vesting requirements

Which nonforfeiture option has the highest amount of insurance protection?

Extended Term

The life insurance policy that prevents an insurance company from denying payment of a death claim after a specified period of time is known as

Inconstestability Clause

The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time

Incontesability clause

Which of the following best describes annually renewable term insurance

It is level term insurance

Which of the following is NOT true regarding the accumulation period of an annuity

It would not occur in a deferred annuity

Which of the following is correct concerning the taxaxtion of premiums in a key- person life insurance policy?

Premiums are not tax- deductible as a business expense

The policyowner of a Universal Life policy may skip paying the premium and the policy will not lapse as long as

The policy contains sufficient cash value to cover the cost of insurance

In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?

Unilateral

An employer has sponsored a qualified retirement plan for its employees where the employer will contribute money whenever a profit is realized. What is this called?

Profit Sharing Plan

Which if the following is not true regarding the annuitant?

The annuitant cannot be the same as the annuitant owner

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days

Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?

Paid- Up option

which of the following is NOT TRUE regarding the annuitant?

the annuitant cannot be the same person as the annuity owner

all of the following statements about equity index annuity are correct EXEPT

the annuitant receives a fixed amount of return

Life income joint and survivor settlement option guarantees

Income for 2 or more recipients until they die

the advantage of qualified plans to employers is

Tax- deductible contributions


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