Types of Individual Life Insurance exam

Which of the following will NOT be appropriate use of a deferred annuity

A) creating an estate

Which is TRUE about the cash surrender nonforfeiture option

A) funds exceeding the premium paid are taxable as ordinary income

An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He was killed in a car accident and it's discovered that his actually age is 45. What will the company do

B) pay a reduced benefit

A deferred annuity is surrendered prior to annuization. Which of the following best describes the nonforfeiture value of the annuity

B) the surrender value should be equal to 100% of the premium paid, minus any prior withdrawals and surrender charges

A 20-year family income policy was purchased, effective date 4/1/2001. The insured died 4 months later 8/1/2001. The beneficiary receives monthly income for

B- 19 years and 8months

An insurance institution or agent that decreases information in violation of the Information Privacy and Disclosure Statues of North Carolina will be liable for

C) damages sustained by the individual to whom the information relates

How long is a free look period for replacement policies

D) 30days

A corporation is the owner and beneficiary of the key policy. If the corporation collects the policy benefit

D) the benefit is received tax free

During partial withdrawal from a university life policy, which portion will be taxed

Interest