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Cash values in a whole life policy are called
Nonforfeiture values
If an insurer is eligible to invest assets from it separate accounts what percentage of those assets may be invested in a single company
10%
Which of the following is not true reguarding a deferred annuity
Income payments begin within one year from the date of purchase
In mass how often are a license required to complete continuing education requirements ?
Every 36 months
An insurance adviser license may be issued to a corporation if the majority of the officers of the corporation are
Found by the commissioner to be in all respects qualified licensed advisors
Variable insurance and variable annuities are regulated by
Sec, finra, & department of. Insurance
Which of the following indicates the person upon whose life the annuity income amount is determined ?
Annuitant
Which of the following would not trigger the payment of accelerated death benefits
Being permanently disabled
Sally set up an individual retirement account that her employer is now contributing to. Her employers contribution are not included in her gross income. What kind of retirement plan is this ?
Simplified employee pension
An individual receives a lump sum inheritance, he'd like to use the money to create a lifetime income since he'll be retiring soon. He purchases an annuity and wishes to receive payments beginning 2 months. What did he buy ?
Single premium deferred annuity
In a deferred annuity the difference between the accumulation value and surrender value is
Surrender charge
What is the uncertainty of chance or loss occurring ?
Risks
What insurance policy generates immediate cash value
Single premium
An insured decided to surrender his whole life policy the cash value at surrender is higher than the premium paid into the policy due to interest. What part of the surrender value would become income taxable
The difference between the premium paid and the cash value
What policy allows owner to skip payment provided there is enough cash value
Universal life
What are unequal amounts that are exchanged between payments & benefits
Aleatory contract
And insured falls down a flight of stairs and sustain a neck injury that reenders him severely disable the insured owns a whole life policy is it possible to include a waiver of cost insurance rider
No it is not possible for this waiver to be included in a whole life policy
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 got to the contingent beneficiary. Which settlement option is this ?
Fixed amount
All of the following information needs to be included on an application for life insurance excepts
Health insurance policies in force
Which of the following is true regarding premium in a 10 year level premium policy?
The premium will remain level for ten years
A policy owner fails to pay the premium due on his whole life policy after the grace period passes but the policy remains in force. This is because what provision ?
Automatic premium loan
What part of the internal revenue code allows an owner of a life insurance policy or annuity to exchange or replace their current contract with another contract with out creating adverse tax consequences ?
Section 1035 policy exchange
According to life insurance replacement regulations which of the following would be an example of policy replacement
A policy is reissued with a reduction in a cash value
A person was caught misrepresenting the terms of a policy what time does he face ?
Find up to 1,000$ or imprisionment for 6 months
Which of the following could reduce The amount of the death benefit?
Failure to repay a policy loan
All of the following information needs to be included on an application except
Health insurance policies in force
All of the following are true of the annually renewable term insurance except ?
Prof of insurability must be provided at each renewal
Which of the following would be true of both the fixed period and fixed amount settlement options
Both guarantee that the principal and interest will be fully paid out
Which of the following is the distinguishing characteristic of the interest-adjusted net cost method?
Considering the time value of the money in comparing life insurance costs
Which of the following features of the equity indexed whole Life policy is not fixed
Cash value growth
In order for a business partner to be eligible for a Keogh plan he or she must work full-time and own at least how much of the business
10%
Annuities certain limit the amount paid by the annuity to a certain amount
Period or fixed
An insurance adviser maybe issued to a corporation if the majority of the officers of the corporations are ?
Found by the commissioner to be in all respects qualified license advisers
All of the following are required for hiv testing except
If hiv is present the person can be rated but cannot be declined
Which of the following best represents what is meant by life insurance creates an immediate estate
The face value of the policy is payable to the beneficiary upon the death of the insured
All of the following are true of credit life insurance except
The insured names beneficiary
All of the following are true of group life insurance except
The insureds each own their own contract
How much training related to the business of life settlements must life settlement brokers complete
15 hours every 2 years
If an insured purchases an insurance policy with a large deductible what risk management technique is this
Retention
Johns annuity has accumulated the cash value of 70k of which 30k is from premium payments. He dies during the accumulation phase. What does his beneficiary receive?
70k
Each insurer that sells solicits or negotiates any form of limited line credit insurance must provide to each individual whose duties will include selling soliciting or negotiating limited line credit insurance.
A program instruction that may be approved by the commissioner
All of the following are true of the survivorship policy except ?
The premium is based on the age of each insured
Under which of the following conditions would life insurance proceeds be taxable by the federal government ?
If there is a transfer for value
When an annuity is used to provide savings for the education expense a last in first out arrangement is used what is the last money to go into an annuity
Interest
If a life insurance company uses hiv testing as part of the underwriting when must the applicant be notified ?
Prior to performance test
Which of the following is true regarding pure life annuity settlement option
Provides highest monthly benefit
Which component decrease in decreasing term insurance
Face amount
What is the penalty for impersonation ?
Between 10$ & 100$
An insured decides to surrender his whole life policy the cash value at surrender is higher than the premium paid into the policy due to interest what part of the surrender value would become income taxable
Difference between the premiums paid and cash value
In which of the following scenarios would a producer be allowed to obtain insurance through an unauthorized insurer.
If there are no authorized insurers for a specific type of co weave in this state
An annuitant pays the annuity premium on the 14th of each month. Which best describes this arrangement?
Level
What is the continuing education requirement
Minimum of 60 hours
An insured falls down a flight of stairs and sustains a neck injury that renders him severally disabled. The insured owns a whole life policy is it possible for the policy to include a waiver of cost insurance rider ?
No it is not possible for this wavier to be included in a whole life policy
What is the difference between a straight life policy and a 20 pay whole life policy?
Premium payment period
Jones retirement plan meetsall federal requirements in entitles him to a certain tax benefit as the owner of the plan what term best describes this retirement plan ?
Qualified
Which Nonforfeiture option provides coverage for the longest period Of time ?
Reduced paid up
A situation in which a person can only lose or have no change is what kind of risk ?
Pure
What kind of insurance is a level fixed premium investment based-product that can be described as a combination of a decreasing term insurance & an investment fund ?
Variable life