insurance is hard
Joint Life
A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy?
Survivor Protection
A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as
Guaranteed surrender value
According to the nonforfeiture law, if the owner decides to surrender a deferred annuity prior to annuitization, the owner is entitled to which of the following?
The payments will stop when the annuitant dies
All fo the following statements are true regarding installments for a fixed amount EXCEPT
The insured may choose to convert to term or permanent individual coverage.
An employee is insured under her employers group life plan. If she terminates her group coverage, which of the following statement's is INCORRECT?
False Advertising
An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?
Cash option
An insured receives an annual life insurance dividend check. What term best describes this arrangement?
Increases annually
Annually Renewable Term policies provide a level death benefit for a premium that?...
Credit Life
Decreasing term
Taxable interest will be withdrawn first and the 10% penalty will be imposed if under age 59.5
During the accumulation period in a non qualified annuity, what are the tax consequences of a withdrawal?
Taxable interest will be withdraw first and the 10% penalty will be imposed if under the age 59.5
During the accumulation period in a nonqualified annuity, what are the tax consequences of a withdraw?
3 years
How often must the superintendent examine financial affairs of domestic insurers?
With the policy
If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant...
Name, age. and sex of the insurance producer
In Ohio, all life insurance policy illustrations must include all of the following except
Statement of Policy Cost and Benefit Information
In Ohio, the written statement that describes all relevant elements of the policy must be titled
Cash Values
Increase tax deferred
Return of premium rider
Increasing term
Generally not taxed as income
Life insurance death proceeds are..
"Not taxable" since the IRS treats them as a return of a portion of the premium paid.
On a participating insurance policy issued by a mutual insurance company, dividends paid to the policyholders are
Mutual
Owned by policy holders and pay dividends to policy holders
Distributions
Tax Free
Accelerated Benefits
Tax free
lump sum cash surrenders
Taxable
Express authority
The authority granted to an agent by means of the agent's written contract.
the amount to be repaid under the contract
The initial amount of credit life insurance may NOT exceed
Reduction of Premium
The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?
5 days
To avoid violating the state Insurance Code regarding unfair claims settlement practices, insurers must pay a claim within how many days of the final agreement to the settlement?
Cash surrender
Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner?
Waiver of Cost
Universal Life
The owner will receive the surrender value of the annuity
What happens if a deferred annuity is surrendered before the annuitization period?
The rider is usually level term insurance
Which is true about a spouse term rider?
Universal Life
Which of the following Life Insurance policies would be considered interest sensitive?
Payor Benefit
Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?
Superintendent
Which of the following authorities is responsible for assessing the financial ability of insurers
It is level term insurance
Which of the following best describes annually renewable term insurance?
The period of time during which accumulated money is converted into income payments
Which of the following best describes what the annuity period is?
Depreciation Period
Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income?
The have a guaranteed minimum interest rate
Which of the following is TRUE for both equity indexed annuities and fixed annuities?
dividends are not taxable
Which of the following is true regarding taxation of dividends in participating policies?
It can protect the policy proceeds from creditors of the beneficiary
Which of the following is true regarding the spendthrift clause in life insurance policies?
AM Best
Which of the following produces evaluations of insurers' financial status often used by state departments of insurance?
Withdrawals are not taxable
Which of the following statements regarding the the taxation of Modified Endowment Contracts is FALSE?
Target Premium
Which of the following would help prevent a universal life policy from lapsing?
Replacement Rule
Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?
Extended term
highest insurance protection
pure life
highest monthly benefit
Straight Life
lowest annual premium of 3 types of whole life
Universal Life
offers surrenders and partial surrenders
Cash Value Gains
taxed at surrender
Without receiving written consent from an insurance regulatory authority
Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce.
Reduced Paid-Up Insurance
Provides the longest protection
Death proceeds
Receive the federal estate tax
