Readiness missed

What is the minimum age that a person may make contracts of insurance with a life insurance company in this state? a) 15 b) 16 c) 18 d) 21

15

After an insurer appoints a new agent, the Commissioner must be notified within a) 10 days. b) 15 days. c) 20 days. d) 30 days.

15 days

A temporary license can last no longer than a) 90 days. b) 120 days. c) 180 days. d) 365 days.

180 days

What type of an interest rate is guaranteed in universal life policies? a) Contract interest rate b) Nominal interest rate c) Adjustable interest rate d) Current interest rate

Contract interest rate

An adjustable life policy can assume the form of a) Either term insurance or permanent insurance. b) Neither term insurance nor permanent insurance. c) Only term insurance. d) Only permanent insurance.

Either term insurance or permanent insurance.

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option? a) Paid up additions b) Cash surrender value c) Reduced paid up d) Extended term

Extended term

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. Which settlement option did J choose? a) Joint and Survivor b) Fixed Amount c) Fixed Period d) Interest Only

Fixed amount

All insurers, agents and brokers doing insurance business in North Carolina must maintain complete and accurate records of the business conducted. The first offense of failure to comply with the provision of the law may result in a) License suspension for up to 6 months and participation in a continuing education course on insurance regulations. b) License suspension or revocation for up to 6 months. c) License revocation for one year. d) Imprisonment for up to 3 years.

License suspension or revocation for up to 6 months.

Contributions to Roth IRAs are a) Paid with pre-tax dollars. b) Not tax deductible. c) Tax deductible. d) Always subject to a 6% tax penalty.

Not tax deductible

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? a) Automatic premium loan b) Waiver of premium c) Payor benefit d) Guaranteed insurability

Payor benefit

S set up an individual retirement account that her employer is now contributing to. Her employer's contributions are not included in her gross income. What kind of retirement plan does S have? a) SIMPLE b) Simplified Employee Pension (SEP) c) 401(k) d) HR-10 (Keogh)

Simplified Employee Pension (SEP)

FICA tax applies to which of the following? a) Social Security b) Life settlements c) Lump-sum death benefits d) Group insurance

Social security

What happens to the face amount of a whole life policy if the insured reaches the age of 100? a) It is paid to the insured's estate and the policy is terminated. b) It is paid to the beneficiary in full. c) The cash value and the face amount are paid to the insured. d) The face amount is paid to the insured.

The face amount is paid to the insured.