Readiness Exam Missed Q's

Which of the following would NOT trigger the payment of Accelerated Death Benefits?

Being permanently disabled

Partners in a business want to make sure that if one of them were to pass away, their surviving family will receive a fair value for their portion in the business. what life insurance arrangement would be most suited for transitioning the business?

Buy-sell agreement

Under which of the following conditions would life insurance proceeds be taxable by the federal government?

If there is a transfer of value

The provision that sets forth the basic agreement between the insurer and the insured and states the insurers promise to pay the death benefit upon the insured's death is called

Insuring clause

Which dividend option increases the death benefit?

Paid-up additions

A married couple purchase a life insurance policy on their newborn baby. they are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability. which policy rider should their agent recommend?

Payor benefit

The family rider incorporates

Spouse term and children's term

which of the following is true regarding a joint life annuity

The payments stop at the first death

A client's flexible premium is invested into a separate account. What type ofinsurance product did he purchase?

Variable Universal life

Because of an injury, an insured has been unable to work for 7 months. He wasn't able to pay his life insurance policy premium, yet the policy remains in force. The policy includes:

Waiver of premium rider

All of the following statements are true regarding an ordinary straight life policy except

it does not have a guaranteed death benefit

Dividends received on participating life insurance policies are

not taxable because they are a return of unused premiums

An annuity would normally be purchased by an individual who wants to

provide income for retirement

An insured and his spouse recently had a child. What rider would allow the couple to insure the child for a limited period of time at a specific amount?

Children's term rider

Decreasing Term insurance is often used to

Cover a mortgage

When comparing a joint life policy to two individual life policies of the same amount on the same insurance, which condition is true?

Joint life as a lower premium then the total of the two individual policies

Cash Value guarantees in a whole life policy are called

Nonforfeiture values

In whole life insurance, when is the policy cash value scheduled to equal the face amount?

at the insured's age 100

restoring an insured financially after a claim is known as

indemnity

which of the following is a provision found in life insurance policies

reinstatement

A whole life policy that will generate immediate cash value is

single premium policy

The owner of a whole life policy with an accidental death rider intentionally kills himself after having the policy for 18 months. What is the insurance company course of action?

Deny any payment of death benefit

Which of the following employee benefits essentially provides the employee with a wage increase and directs that wage increase to be spent on a life insurance policy?

Executive bonus

J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. What settlement option did J choose?

Fixed amount