life insurance pt 3

Jason has a $25,000 Whole Life policy with a cash value of $6,000. Under the Extended Term Nonforfeiture Option, what is the amount of insurance available to him?

$25,000

Sharon Smith, a licensed agent, just got married and she needs to change her name. After she gets her official name change from Social Security, in how many days must she notify the department of her name change to Sharon Hall?

30 Days

What is the time to report any civil or criminal action taken against a producer to the Insurance Department.

30 days

Living benefits from a Life Insurance policy apply to all of the following EXCEPT:

Burial Benefits

Which of the following is generally used in Mortgage Protection?

Decreasing term. insurance that directly correlates with the amount of an outstanding loan

An annuity's amount that is not taxable is calculated by which of the following?

Exclusion Ratio

When a Whole Life policy is surrendered for its Non forfeiture value, what will be automatically selected by an insured's insurance company if the policy owner neglects to select an option?

Extended term option

The Human Life Value concept considers all of the following, except:

Future needs of their heirs

Which factor is not considered in underwriting a large group?

Health

When is a Section 1035 Exchange of a Life policy to a different policy permitted?

If from insurer to insurer and no cash is received by the policy owner

What feature applies to a Deferred Annuity?

Income payments begin sometime after a year

Which of the following applies to the death benefit in a Variable Whole Life policy? A. It always stays the same B. It may not increase C. It may not be below the initial face amount stated in the policy D. It may decrease

It may not be below the initial face amount stated in the policy

Jake's Life insurance policy lapsed. In order for it to be reinstated all of the following must occur EXCEPT:

Jake's new incontestable period will start at the time of his reinstatement

Mr. and Mrs. Jameson are planning for their retirement. They want to make sure their future lifestyles won't change with the perfect selection of an annuity. With their annuity, should one of them pass away, the other one will continue to receive benefits. What does this describe?

Joint and Survivor

Earnings, savings and investment income are most closely associated with which of the following?

Living benefits of life insurance policy

Policyholders receive policy dividends when there is a profit at what type of insurance company?

Mutual Insurance companies

Which statement about federal income tax treatment for Life insurance is false?

The entire cash surrender is taxable

Which of the following can be incorporated into a Life policy to help pay for expenses when one is terminally ill?

Accelerated Death Benefit

Jill misstated her age on her group insurance application. Her insurer will do which of the following?

Adjust her premium

What part of an application process contains an agent's observations concerning a proposed insured and reasons their contract should not be issued?

Agent's report

What does the term vested mean in regard to a SIMPLE PLAN?

An employee has access to their funds immediately upon leaving their company

Jill has a provision that allows her to temporarily give up ownership rights of her policy to secure a loan. This is possible by which provision?

Collateral

Whats a requirement for a Keogh Plan?

Contributions to a Keogh Plan are tax deductible.

Where would the investment gains from a Universal Life policy go?

To the cash value

What receipt states that coverage will begin immediately, even if an applicant is declared uninsurable?

Unconditional

Who negotiates a Viatical Settlement according to a viator's instructions?

Viaticle Broker. has fiduciary responsibility to a visitor

The insured died within 30 days that his premium fell due, his beneficiaries

Will be paid the face value but after the due premium has been deducted