THE STUDY GUID
how many years does a insurance producer need to do to be qualified
1 year
free look gives the owner how many days to cancel contract
10 days
free look must be done in how many days
10 days
When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?
Equal to the original policy for as long as the cash values will purchase.
Which of the following riders would NOT cause the Death Benefit to increase?
Payor Benefit Rider
qualified retirement plans
Qualified plans have tax-deferred contributions from the employee, and employers may deduct amounts they contribute to the plan.
Under an extended term nonforfeiture option, the policy cash value is converted to
The same face amount as in the whole life policy.
conditional is
both parties follow certain rules on the contract
policy that been surrendered for cash value
cant be reinstated
An insured receives an annual life insurance dividend check. What term best describes this arrangement?
cash option
life insurance pays
dividends to the policy-owners
if a spouse term puts benefits straight into another IRA rollover
generally not taxed
During replacement of life insurance, a replacing insurer must do which of the following?
give a notice regarding replacement
A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?
if the payor (usually a parent or guardian) becomes disabled for at least 6 months or dies, the insurer will waive the premiums until the minor reaches a certain age, such as 21.
what does the debtor NOT have on the creditor
insurable interest
what happens if no beneficiary named
it goes to the insured estate
cash payment settlement option taxable
it is tax free
what happens for the key person tax benefit
it is taxed free
a grace period is
mandatory provision found in all life and health insurance policies that provides coverage for a period of time after the premium becomes past due.
entire contract is
policy +copy of application + any riders or amendants
for incontestability clause to happen
policy must be in forced for 2 years
Inconstestability Clause
prevents an insurer from denying a claim due to statements in application after policy been in force for 2 years
All of the following are beneficiary designations
primary or contingent, secondary and tertiary.
The Ownership provision entitles the policyowner to do all of the following EXCEPT
set premium rates
upon delivery the producer may be required to obtain all of the following except
signed waiver of premium
a warranty in insurance is
statement that is guaranteed to be true
difference between substandard and standard
substandard pays higher premiums
what is the maximum time limit for reinstatement
usually 3 years
When calculating the amount a policy-owner may borrow from a variable life policy, what must be subtracted from the policy's cash value?
outstanding loan difference
apparent is also known as
perceived authority
The guaranteed insurability option allows the insured to
purchase specific amounts of additional insurance at specific times without proving insurability.
Insureds cannot be
randomly selected.
rescinded mean
revoke, cancel
exclusions are
risks that. the company will not cover
The interest earned on policy dividends is
taxable
what is the base source of the information
the application
what will key person insurance policy cover
the cost of running the business and replacing the employee
risk is
uncertainly or chance of loss
the guarantee assocaton will not pay more than
100,000 for net cash surrender and net cash with-drawls
non qualified retirement plans
Non-qualified plans use after-tax dollars to fund them, and in most cases employers cannot claim their contributions as a tax deduction.
If an insured continually uses the automatic premium loan option to pay the policy premium,
The policy will terminate when the cash value is reduced to nothing.
Buy sell are strictly used for
business uses
the policy owner must have an insurable interest in who
in the insured
what does the inspection report cover
moral and finical information regarding potential insured
what happens when a policy has been personally delivered to owner
must sign a delivery receipt
legal action must be taken within
2 years after the loss
what age can I start taking distributions out fo my IRA
72
To avoid interest on insurance proceeds, the insurer must pay the death benefit within how many days of receipt of proof of loss?
Insurance proceeds must be paid within 30 days after receiving proof of loss. A 6% interest rate will be assessed on the proceeds left on deposit with the insurer after the 30 days.