Primerica Simulated Exam 4

¡Supera tus tareas y exámenes ahora con Quizwiz!

Your client wants both protection and savings from the insurance, and is willing to pay premiums until age 65. What would be the right policy for this policy

Limited pay whole life

Which is true about a spouse term rider

The rider is usually level term insurance

What is the purpose of a disclosure statement in life insurance policies

To explain features and benefits of a proposed policy to the consumer

Which of the following policies would have an IRS corridor or gap between the cash value and the death benefit

Universal Life - Option A

All of the following are the general qualifications for a an agents license EXCEPT

Have a high school diploma

An agent selling variable annuities must be registered with

FINRA

All of the following are true regarding insurance policy loans EXCEPT

Policy loans can be made on policies that do not accumulate cash value

Which of the following is TRUE regarding variable annuities

The annuitant assumes the risks on investment

In which of the following instances would the premium be tax deductible

Premiums paid by an employer on a $30,000 group term life insurance plan for employees

Which of the following factors determines the amount of each installment paid in a Life Income Option arrangement

Recipient's life expectancy and amount of principle

Which of the following is NOT true regarding a Certified of Authority

It is issued to group insurance participants

Which of the following is a feature of a variable annuity

Benefit payment amounts are not guaranteed

Which of the following must an insurer obtain in order to transact insurance within a given state

Certificate of authority

Which of the following describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance

Defamation

The requirement that agents not commingle insurance monies with their own funds is known as

Fiduciary responsibility

Which term describes the benefits of a life insurance policy that the policyowner does not automatically relinquish even if the policy lapses

Nonforfeiture values

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 are TRUE statements regarding the accumulation at interest option EXCEPT

The interest is not taxable since it remains inside the insurance policy

What is the purpose of a fixed-period settlement option

To provide a guaranteed income for a certain amount of time

If a life insurer holds the proceeds of any policy it issues, which of the following is true?

The proceeds may be exempt from any creditor's claim against a beneficiary other than the policy owner

An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history one year later. What will probably happen

The policy will not be affected

If a settlement option is not chosen by the beneficiary or policyowner, which option will be used?

lump sum

An employee quits her job where she has a balance of $10,000 in her qualified plan. The balance was paid out directly to the employee in order for her to move the funds to a new account. If she decides to rollover her plan to a Traditional IRA, how much will she receive from the plan administrator and how long does she have to complete the tax-free rollover?

$8,000, 60 days

An insured pays $1,200 annually for her life insurance premium. The insured applies this year's $300 worth of accumulated dividends to the next year's premium, thus reducing it to $900. What option does this describe

Reduction of Premium

An insured committed suicide 6 months after his life insurance policy was issued. The insurer will

Refund the premiums paid

If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?

The policy will be interpreted as if the insurer waived its right to have an answer on the application

What percentage of a company's employees must take part in a noncontributory group life plan

100%

Who does the secondary notice provision protect?

The insured over the age of 64

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

Which of the following describes the tax advantage of a qualified retirement plan

The earnings in the plan accumulate tax deferred

The proposed makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit if the beneficiary if the policy is approved. This is an example of what kind of contract

Conditional

The inclusion of the Life and Health Guaranty Association in an advertisement by an insurer is

Forbidden

If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant

With the policy

All of the following are requirements for life insurance illustrations EXCEPT

They must be part of the contract

If a claim is made on a policy during the grace period, an insurer is allowed to deduct the overdue premium and to charge interest. What is the maximum allowed interest rate

8%

Which of the following best describes a misrepresentation

issuing sales material with exaggerated statements about policy benefits

Part 2 of the application for life insurance provides questions regarding all of the following EXCEPT

Other insurance coverages


Conjuntos de estudio relacionados

Chapter 6: Exercise for Health and Fitness

View Set

Chapter 22: Nutrition and Digestion

View Set

Chapters 1-7 Medical Ethics Exam Questions

View Set

Module 6: Safety and Infection Control

View Set

Efficient Market Hypothesis and Behavior Finance

View Set

Entrepreneurship Semester 2 Study Guide - Multiple Choice

View Set