Insurance questions

An annuity contract is issued to a senior consumer over age 65. What is the maximum surrender charge for a withdrawal of money allowed on this annuity?

10%

The minimum age for purchasing life insurance policy in Florida is?

15

In order to maintain an insurance license an agent licensed for less than 6years will need to satisfy floridas continuing education

24 hours every 2 year period

An Internal Revenue Code provision that specifically provides for an individual retirement plan for public school teachers is a(n) ?

403(b) plan (tsa)

An employee will be taxed on the cost of group life insurance paid by the employer of the amount of coverage exceeds ?

50,000

If a company has a simplified employee pension plan, what type of plan is it?

A qualified plan for a small business

In insurance an offer is usually made when?

An applicant submits an application to the insurer

What is a consideration for the insurance policy owner?

Application representation and premium

When must insurable interest exist?

At the time of application

The accelerated benefits provisions will provide for an early payment of the death benefit when the insured..?

Becomes terminally Ill

To legally transact insurance in this state, an insurer must obtain which of the following?

Certificate Authority

Which of the following includes information regarding a persons credit, character, reputation and habits?

Consumer report

In group life insurance policies, a certificate of insurance is given to

Each insured person

When the insureds 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 the cash values will purchase

Circling deceptive sales material to the public is what type of unfair trade practice

False advertising

Which of the following is an eligibility requirement for all social security disability income benefits?

Have attained fully insured status

What type of insurance would be used for a return of premium rider?

Increasing Term

What is a consideration for the insurer?

Insurer payment of claims

Which of the following statements is true of qualified plan?

It has a tax benefit for both employer and employee

Which of the following is true of a qualified plan?

It has a tax benefit for both employer and employee.

What is the benefit of choosing extended term as nonforfeiture option?

It has the highest amount of insurance protection

If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?

It is only taxable if the cash value exceeds the amount paid for premiums.

What insurance pays the death benefits when the first person dies?

Joint life

Which of the following information about the applicant is not included in the general information section of the application for insurance

Medical background

If a life insurance policy develops cash value faster than a seven-pay whole life contract, it becomes an

Modified Endowment Contract

Can a group that is formed for the sole purpose of obtaining group insurance qualify for group coverage?

No, the group must be formed for a purpose other than obtaining group insurance.

A participating insurance policy may do which of the following?

Pay dividends to the policyowner

Which of the following individuals must have insurance interest in the insured?

Policyowner

Who bears the investment risk on variable life?

Policyowner

Which of the following is among the regulations set forth by the Florida replacement rule?

Providing written comparison and summary statement

If an employer decides to change its life insurance policy to a similar one with a different insurer, which of the following describes the extent that replacement regulations will be exercised?

Replacement regulations will not apply in this situation.

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?

Replacement rule

Under the fair credit reporting act, if a consumer challenges the accuracy of the information contained in a consumer or investigative report, the reporting agency must

Respond to the consumers complaint

What are the different Troyes of whole life Insurance?

Single premium, limited pay, & straight life

Which of the following applicants would not qualify for a keogh plan?

Someone who works 400 hours per year

What insurance pays the death benefit when the second person dies?

Survivorship life

A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true?

The amount of the distribution is reduced by the amount of a 20% withholding tax.

Which of the following statements about group life is correct?

The cost of coverage is based on the ratio of men and women in the group.

A person insured under a group life insurance policy can make an assignment of all or any part of the incident of ownership conferred on the insured by the policy or by law, to any of the following accept

The policy holder

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 claims against a beneficiary other than the policy owner.

What is insurance?

Transfer of risk

Under what circumstances can an agents appointment be transferred to another person?

Under no circumstances

When does the free look period begin?

When the policy is delivered

What are 4 required elements of an insurance contract?

agreement, consideration, competent parties, legal purpose

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

conditional

Which of the following is an agreement between an insured and an insurer, where the insurer agrees to indemnify the insured for specific losses in exchange for a premium

insurance contract

In life settlement contract, whom does the life settlement broker represent?

owner

An employer has sponsored a qualified retirement plan for its employees where the employer will contribute money whenever a profit is realized. What is this called?

profit-sharing plan

Who does the secondary addressee provision protect?

the insured over the age of 64

For a retirement plan to be qualified, it must be designed for whose benefit?

employees

An agent's appointment has been denied. Which of the following is true?

State taxes may be refunded upon a written request.

The premium paid by the employer in a business life insurance policy are

Tax deductible by the employer

The advantage to qualified plans to employers is?

Tax-deductible contributions

Which of the following insurance products will be subject to the regulation on life insurance solicitation

Term life policy

An insured misstated her age at the time the life insurance application is taken. This misstatement may result in

Adjustment in the amount of death benefit

Which one of the following riders added to a insurance life policy can pay part of the death benefit to the insured to cover expenses incurred in a nursing or convalescent home?

Long term care

Types of hazards

Physical, Moral, Morale

Who may contribute to a keogh (HR-10) plan?

Self employed

Childrens riders attached to whole life policies are usually issued as what type of insurance?

Term

Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe?

adhesion

Which of the following best describes fixed period settlement option?

Both the principal and interest will be liquidated over a selected period of time.

If an insured worker has earned 40 quarters of coverage, the worker's status under Social Security disability is?

Fully insured

Failure of a licensee to maintain an appointment with an insurance company within 48 months after the date the license became effective will result in

expiration of the license

Life insurance death proceeds are

Generally not taxed as income

An applicant who receives a preferred risk classification qualifies for

Lower premiums than a person who receives a standard risk.

If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a?

Settlement option

Who bears the investment risk on whole life?

insurer

What is the other term for the cash payment settlement option?

lump sum

What are the different types of term Insurance?

Level, increasing and decreasing

What does LP stand for?

Limited payement

Two attorneys operate their practice as a partnership. They want to start a program through their practice that will provide retirement benefits for themselves and three employees. They would likely choose

HR-10 (Keogh Plan)

An insured has a modified endowment contract. He wants to withdraw some money in order to pay medical bills. Which of the following is true?

He will have to pay a penalty if he is younger than 59 1/2

A rider attached to a life insurance policy that provides coverage on the insureds family members is called the?

Other-insured rider

Traditional IRA contributions are tax deductible based on which of the following?

Owner's income

What two parts make up a life insurance application?

Part 1- General Information Part 2- Medical Information

Examples of Insurable Interest

Policy owners own life, the life of a family member, the life of a business partner, key employee or someone who has a financial obligation to the policy owner.

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

An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with upcoming expenses. What option could the insured utilize?

Viatical settlement

What are the elements of a legal contract?

agreement, consideration, competent parties, legal purpose

When transacting business in this state an insurer formed under the laws of another country is known as a/an

alien insurer

If an employee is accepted into a group insurance plan, which status will the employee have

certificate holder

Which of the following terms is used to name the non taxed return of unused premiums?

dividend

Which of the following best describes an insurance company that has been formed under the laws of this state

domestic

What kind of policy does not typically require proof of insurability

group insurance

All advertisements are the responsibility of the

insurer

A 403(b) plan, commonly referred to as a TSA, is available to be used by

teachers and not-for-profit organizations

Which of the following is the basic source of information used by the company in the risk selection process?

application

How often must domestic insurance companies be examined by the chief financial officer in Florida

at least every 5 years

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered what type of insurer?

authorized

If an agent advises a policyholder to replace an insurance policy but only does so for the purpose of making commissions, the agent has committed an act of

churning

If a settlement option is not chosen by the policy owner or the beneficiary, what option will be used by the insurer?

lump sum

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?

mutual

Which of the following will not be considered unfair discrimination by insurers?

Discriminating in benefits and coverages based on the insured's habits and lifestyle

If taken a lump sum, life insurance proceeds to beneficiaries are passed

Free of federal income taxation

In a direct transfer, how is money transferred from one retirement plan to a traditional IRA?

From trustee to trustee