Life E

Which of the following best describes the aleatory nature of an insurance contract?

Exchange of unequal values

An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. what type of a report is that?

Inspection Report

Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?

Installments for a fixed period

What are the two components of a universal policy?

Insurance and cash account

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT

conditions

A Universal Life Insurance policy is best described as a/an

annually renewable term policy with a cash value account

All of the following are examples of third-party ownership of a life insurance policy EXCEPT

An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan.

Variable Whole life insurance is based on what type of premium?

Level fixed

The Gramm-Leach-Bailey Act was passed to

Protect private customer information filed with a financial institution.

Which of the following information will be stated in the consideration clause of a life insurance policy?

The amount of premium payment

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 is NOT true about beneficiary designations?

The beneficiary must have insurable interest in the insured.

Which of the following best describes the tax advantage of a qualified retirement plan?

The earnings in a qualified plan accumulate tax deferred.

Which of the following is NOT true of life settlements?

The seller must be terminally ill

In forming an insurance contract, when does acceptance usually occur?

When an insurer's underwriter approves coverage

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

fully insured