Life insurance study exam part.3

Pete purchases a 50,000 whole life policy in 2005 what are the questions on the application ask if he engages in scuba diving to which P answers no the policy is an issue with no scuba exclusions in 2010 people takes up scuba diving and dies scuba related accident on 2011.what will the insurer paid two P's beneficiary?

$50,000 minus any outstanding policy loans

An agent must complete __ biennial continuing education credit hours to maintain his/her license

24

What actions can a policy owner take if an application for a bank loan requires collateral

Assign policy ownership to the bank

Which of these is not considered to be connected with an individual death?

Business expenses

The type of annuity that can be purchased with one monetary deposit is called a

Immediate annuity

All of these statements concerning settlement options are true EXCEPT

Only the beneficiary may select

Which of the following provisions guarantees that premiums will be waived if a juvenile life policy owner becomes disabled?

Payor clause

When an employee is terminated, which statement about a group term life conversion is true?

Policy proceeds will be paid if the employee dies during the conversion period

A life insurance policy owner would like to take out A policy loan against the cash value in his whole life policy.the interest rate applied to this lonely very overtime. this is referred to as a _______ rate loan

Variable

B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of

additional Whole Life coverage at specified times

In a qualified retirement plan, the yearly contributions to an employee's account

are restricted to maximum levels set by the IRS

K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable?

level

A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid

mandatory income tax withholding on the amount transferred

Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The widow qualifies for the

marital deduction

Which of these is not an element of life insurance premiums?

morbidity rate

K sent a renewal premium payment to her insurer that would extend her coverage beyond the policy's maximum age limit. If the insurer accepts this premium payment, it

must continue the coverage to the end of the period of time for which the premium was accepted

Which of the following issues new insurance coverage intended to replace an existing life insurance policy?

replacing insurer

All of these are considered to be a benefit under social security, EXCEPT for

unemployment

When is the face amount paid under a Joint Life and Survivor policy?

upon death of the last insured

ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has

waived one of its legal rights

What does a 401(k) plan generally provide its participants?

Salary-deferral contributions

P is a producer who notices 5 questions on a life application were not answered. What actions should P take?

Set up a meeting with the applicant to answer the remaining questions

The amount of coverage on a group credit life policy is limited to

the insured's total loan value