Premiums and proceeds

which of these factors does not affect life insurance premium rates

producer certification

which of these occurrences could imporve an insureres ability to reduce premiums

rate of earnings of investment increase

Which tax cost is normally associated with death?

Federal estate tax

How long do most states allow an insurance company to delay the payment of a cash surrender under the Delayed Payment provision?

6 months

Switching Life insurance policies without tax consequence is permitted under

section 1035 rules

Which life insurance settlement option pays a stated monthly benefit until both principal and interest are exhausted

Fixed amount installment option

which of these is an accurate statement refunding the fixed period settlement option on a life insurance policy

a portion of payments paid to the beneficiary come from interest calculated on proceeds of the policy

Kevin has an existing life insurance policy and assigns it to another insurer for a new contract. How would this transaction be treated for tax purposes?

a section 1035 exchange

the highest mortality rate belongs to

age 70 males

which would be described as a beneficiary designated by class

children of the insured

Al surrenders his life insurance policy for its cash value. The total of the premiums paid into the policy minus total dividends received in cash or used to offset premiums is referred to as the

cost basis

what affect does interest income have upon insurance premiums

decreases premiums

Death benefits from a life insurance policy are normally considered to be

exempt from federal income tax

a policy owner fell behind on the premium payments of a whole life policy and is now in the grace period

face amount minus the loan balance and past due premium

Which tax is normally associated with an individual's death? Excise tax Consumption tax Federal estate tax Ad valorem tax

federal tax

which settlement option makes minimum guaranteed dollar payments over a stated number of years

fixed-period

Death proceeds from a life insurance policy are typically included in a deceased insured's gross estate

for federal income tax reasons

Where will a life insurance policy's proceeds be directed to if all the beneficiaries die before the insured?

insured estate

When premiums are determined, one factor would be the expenses of the

insurer

which statement is incorrect about the interest only settlement option in a life insurance policy

interest on proceeds must be paid by the beneficiary

When a policy loan is requested by a policyowner and it requires the consent of the beneficiary, what kind of beneficiary designation is this?

irrevocable beneficiary

which life insurance settlement option for two or more people

joint and survivor

a life insurance beneficiary died after only six payments under a life income settlement option. what happens with the remaining balance

kept by the insurance company

How much is normally paid to a policyowner in a life (viatical) settlement?

less than the death benefit

during the early years of a whole life insurance policy the cash value will normally be

less than the normal premium paid

A life policy spendthrift clause would have no effect if the proceeds as a

lump-sum payment

what would a valid reason be for naming a trust as the beneficiary of a life insurance policy as opposed to naming an individual

management of proceeds would be provided

what is considered a valid reason for an insurer refusal to pay policy proceeds

minors are normally not capable of handling money in a responsible manor

life insurance premiums are computed on what three factors

mortality, interest, expenses

Wyatt is shopping for life insurance and is mainly concerned with the policy's death benefit. Which index should he be looking at when making comparisons?

net payment cost index

which statement best describes a single premium whole life policy

paid up policy that offers a lifetime of protection

the beneficiary of a life insurance policy is normally selected by whom

policy owner

What kind of arrangement gives the policyowner the right to change the beneficiary? Contestable designation Incontestable designation Irrevocable designation Revocable designation

revokable designation

which life insurance policy provision prohibits beneficiary from commuting, encumbering, withdrawing or assigning any portion of the proceeds prior to actual receipt from the company

spend thrift clause

which statement regarding the joint and survivor life insurance settlement is no true

the amount of each installment is larger than the single life income option

which of the following statements about the installment for a fixed period settlement option in a life insurance policy is not true

the periodic payment amount is determined by the beneficiaries age

a life insurance policy contingent beneficiary is the

the person who receives the benefits if the primary benefiiary dies before insured

what would be a disadvantage of naming a trust as a beneficiary of a life insurance policy

trust administration fees would reduce policy proceeds

a terminally ill policy owner decides to sell his life insurance policy at a discount to help support his family

vatical settlement

who is the beneficiary in a life insurance policy

The stated person or entity who is designated to receive the death proceeds

when there is a named beneficiary on a life insurance policy, the death benefits

are paid directly to the beneficiary without inference from the insured creditors

a life insurance company just paid 100,000

nothing

T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?

request of the change will be refused

which statement regarding a fixed peroid settlement option is correct

the installment payment option is determined by total number of installments

a policy owner with a terminal illness who sells his life insurance policy to a third party is called a

viator