Wrong exam Answers

60 days

A distribution from an employer-sponsored retirement plan or from an IRA is eligible for a tax-free roll over if it is reinvested in an IRA within

3

A life insurance policy can be backdated to affect a lower premium for up to a maximum of how many months?

Suitability

Assessing a consumers age, annual income, tax status, and investment objectives in order to select the most appropriate insurance product is known as

Next year's premium

The reduction of premium option uses the dividend to reduce

It satisfies IRS requirements for favorable tax treament

If a retirement plan or annuity is qualified, this means

If there are no authorized insurers for a specific type of coverage in this state

In which of the following s Dbark is would a producer be allowed to obtain insurance through an unauthorized insurer?

Contract interest rate

What type of an interest rate is guaranteed and universal life policies?

Extended term

When a whole life policy is surrender for its nonforfeiture value, what is the automatic option?

Paid-up additions

When the owner of a participating whole life policy uses the dividend to provide more life insurance coverage which of the following dividend options is being used?

Requiring applications more quickly than is reasonable

Which of the following actions does NOT constitute as false advertising?

It is specifically stated in the contract

Which of the following is NOT true of the agents implied authority?

The application contains material misstatements

Which of the following is permissible reason for an insurance company to contest payment of a claim based on statements in the application?

The payments stop after the first death

Which of the following is true regarding a joint life annuity?

Term life

Which of the following policies would NOT offer a policy loan option?

Performance of a recognized index

An Equity Indexed Annuity will grow based upon

Yes proceeds in excess of face amount are taxable as interest

And insured has a life insurance policy in the amount of $250,000 naming his wife as beneficiary pain. Upon his death, his beneficiary decides not to receive the death benefit for sometime. When she finally received the death benefit check, it's in the amount of $250,530. Is any portion of the proceeds at the beneficiary receives taxable?

Retention

If an insured purchases an insurance policy with a large deductible, what risk management technique is the insured exercising?

Fixed amount

Jay is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option to Jay choose?

Continue to increase

A whole life policy is surrender for a reduced-paid up policy. The cash value in the new policy will

Single premium policy

A whole life policy that will generate immediate cash value is a

Single premium immediate annuity

An individual receives a lump sum inheritance. He'd like to use the money to create a lifetime income since he'll be retiring soon. He purchases in annuity and wishes to receive payments beginning at two months. What did he buy?

Variable universal life

An insurers flexible premium is invested into a separate account. What type of insurance product did he purchase?

Misrepresentation

And insurance agent visit a potential client explains various types of policies. The customer displays a lack of interest, so the agent guarantees hire dividends and he knows it would be possible. Which term describes what the agent has done?

The difference between the premiums paid and the cash value

And insured decides to surrender his whole life insurance policy. The cash value at surrender is higher than the premiums paid into the policy, due to interest. What part of the of the surrender value would be income taxable?

Survivor protection

Life insurance can provide which of the following?

5 years

What is the maximum time period between superintendents examinations of books and records of domestic insurers?

An MEC must always pass the 7-pay test

Which of the following statements is INCORRECT concerning MEC's?

They are not taxable and are not guaranteed

Which statement is an accurate description of life insurance policy dividends?

Term

Which type of insurance policies provides pure life insurance protection without a savings element?

The agent

Within 15 days of notifying the superintendent of the termination of an appointment, the insurer must send a copy of that notification to

The premium is based on the age of the insured

All of the following are true of the survivorship life policy EXCEPT

Proof of insurability must be provided at each renewal

All of the following are true of annually renewable term insurance EXCEPT