Texas Life

An individual working part-time has an annual income of $25,000. If this individual has an IRA, what is the maximum deductible IRA contribution allowable?

$6,000

Which of these statements describe a Modified Endowment Contract?

1. Exceeds the maximum amount of premium than can be paid into a policy and still have it recognized as a life insurance contract

Q applied for life insurance and submitted the initial premium on January 1. The Policy was issues Feb 1 but was not delivered by the agent until Feb 7. Q is dissatisfied and returns the policy Feb 13. How will the insurer handle this situation?

1. Policy was returned within the free-look period, premium will be fully refunded

All these statements about the commissioner of Insurance are true EXCEPT

1. the Commissioner must be elected

Which of the following types of Term life policies most likely contains a renewability feature?

10 year convertible term

What is the maximum number of employees (earning at least 5k) that an employer can have in order to start a SIMPLE retirement plan?

100

An insured may assign up to __ of policy ownership under an individual life insurance policy:

100%

In Texas, how long must a policy be in force before an insurance company must pay death benefits for suicide

2 Years

a potential client, age 40, would like to purchase a Whole life policy that will accumulate chase value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct?

20 pay life accumulates cash value faster than straight life

An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction?

20% is withheld for income taxes

The USA patriot act was enacted in

2001

An employee is covered under a company group life plan with a 50k death benefit. What is the MAXIMUM amount a spouse may be insured for under this program?

25,000

In Texas, an individual life insurance policy is REQUIRED to have a grace period of

31 Days

____ of continuing education MUST be completed in the classroom or classroom equivalent

50%

how long does an individual have to "rollover" funds from an IRA or qualified plan?

60 days

All are true statements regarding the underwriting process, EXCEPT:

AIDS and HIV virus exams can be conducted in a discriminatory fashion

Which type of contract liquidates an estate through recurrent payments?

Annuity

What is the initial source of underwriting for an insurance policy?

Application containing statements from the insured

An incomplete life insurance application submitted to an insurer will result in which of these actions?

Application will be returned to the writing agent

A pilot applies for life insurance. The insurer approves the application with a $10 additional monthly premium modification due to the risk involved. The pilot declines the additional premium modification. The insurer will then likely issue the coverage with a(n)

Aviation Exclusion

a life insurance application must be signed by all of these, ECEPT:

Beneficiary

P died five years after purchasing a life policy. While investigating the claim, the insurer discovered material misrepresentations made by P during the application process. Which of these actions will the insurer take?

Beneficiary will be paid the death benefit

what is considered to be a characteristic of an immediate annuity

Benefit Payments start within one payment period of purchase

all of the following are considered to be typical characteristics describing the nature of an insurance contract, EXCEPT

Bilateral

which of these is not considered to be a cost connected with an individual's death?

Business expenses

Company XYZ offers a group Term Life insurance plan to its employees. What does each employee covered under this plan receive?

Certificate of Insurance

As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of?

Coercion

The phrase "transacting business" includes

Collecting Premiums

A key employee policy is taken out by company X on its vice president. Ten years later, this employee leaves company X and begins working for Company Y. If this individual were to die and the policy is still in force and unchanged, where would the death proceed be directed

Company X

Which of the following is NOT included in a life insurance illustration?

Company's mortality table

Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?

Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company

A promotional advertising item is not considered a rebate unless it has a value equal to or less than what amount?

$25

Which of the following features of a group Term Life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability

Conversion Privilege

What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time?

Decreasing Term

Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it?

Decreasing Term

How are Roth IRA distributions normally taxed?

Distributions are received tax-free

P owns a 25k Life policy that pays the face amount to him if he lived to age 70, or to is beneficiary if he dies before age 70. What kind of policy does P own?

Endowment at age 70

What provision in a life insurance policy state that the application is considered part of the contract?

Entire Contract Provision

Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance

Entire cash surrender value is taxable

S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a minimum level or risk. Which product would S be advised to purchase?

Equity Index Insurance

D is the policyowner and insured for a $50,000 life insurance policy. The beneficiary is D's wife. D and his wife divorce and D remarries, transferring ownership of his policy to his new wife. If D dies without making any further changes, to whom will the policy proceeds be paid to?

Ex-Wife

Ina life insurance policy, which feature states that the policy will not cover certain risks?

Exclusion

D owns a Whole Life policy that was purchased 10 years ago. If the premium payments suddenly stop and D takes no additional action, which Nonforfeiture Option will the insurer likely proceed with?

Extended Term

Which federal law allows an insurer to obtain an inspection report on a potential insured

Fair Credit Reporting Act

What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?

Family Maintenance Policy

Which of these is NOT a source of funding for social security benefits?

Federal Government

What action should a producer take if the initial premium is NOT submitted with the application?

Forward the application to the insurer without the initial premium

How does an indexed annuity differ from a fixed annuity?

Indexed annuity owners may receive credited interest tied to the fluctuations of the linked index

Which of these retirement plans can be started by an employee, even if another plan is in existence?

Individual Retirement Account (IRA)

Which of the following groups may NOT be insured by a group life insurance policy?

Individuals related by blood

K is an annuitant currently receiving payments. If she were to die before receiving payments equal to the correct value, a beneficiary will continue receiving payments until an amount equal to the contract value has been paid. This is called a(n)

Installment Refund annuity

If a contract of adhesion contains complicated language, to whom would the interpretation be in favor of?

Insured

if the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the uniform simultaneous Death Act?

Insured's contingent beneficiary

Variable annuities may invest premiums in each of the following, EXCEPT:

Insurer's corporate business account

The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called a(n)

Insuring Agreement

How are policyowner dividends treated in regards to income tax?

Interest on accumulations is taxed

Credit life insurance is:

Issued in an amount not to exceed the amount of the loan/ Insurance issued to a DEBTOR to cover outstanding loan balances

The entity whose sole purpose is sharing medical data among its member companies is called the

Medical Information Bureau (MIB)

Which unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed?

Misrepresentation

A policyowner is allowed to pay premiums more than once a year under which provision?

Mode of premium

K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this?

Modified Whole Life

Which of these is NOT an element of Life Insurance premiums?

Morbidity Rate

Which of these is NOT considered to be an element of an insurance contract?

Negotiating

An insurance has a fiduciary responsibility to all the following EXECPT

Other Agents

P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability?

P will still receive declared dividends

Which action will a life insurance company most likely take if an insured dies and it is discovered that the insured's age was misstated on the application?

Pay an amount the premiums would have purchased at the insured's actual age

M had an annual life insurance premium payment due Jan 1. She died Jan 10 without making the premium payment. What action will the insurer take?

Pay face amount minus the past due premium

which of these statements concerning an individual straight life annuity is accurate

Payments are made to an annuitant for life

Which life insurance rider typically appears on a Juvenile life insurance policy?

Payor Benefit Rider

Which of the following provisions guarantees that premiums will be waived if a Juvenile Life policyowner becomes disabled?

Payor Clause

Which of the following best describes a contingent beneficiary?

Person designated by the insured to receive policy proceeds in the event that the primary beneficiary dies before the insured.

The underwriting process involves all of these, Except for:

Policy Loan

All of these are considered sources of underwriting information about an applicant EXCEPT

Rating Services

The provision that can be used to put an insurance policy back in force after it has lapsed due to nonpayment is called

Reinstatement

J let her life insurance policy lapse 8 months ago due to nonpayment. She can reestablish coverage under which of the following provisions?

Reinstatement Provision

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 change will be refused

S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy?

Return of Premium Rider

J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used?

Revocable

Post-tax dollar contributions are found in

Roth IRA investments

Which of these is not an example of doing insurance business?

Selling shares of stock

Upon delivery of a rated life insurance policy, the Producer must obtain each of the following EXCEPT

Signed HIPAA disclosure

S Recently received a $500k lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for her life. What type of annuity is best suited for her situation?

Single Premium

Who owns a stock insurance company?

Stockholders

The annuity that represents the largest possible monthly payment to an individual annuitant is a(n)

Straight Life Annuity

which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE?

Taxed as ordinary Income

T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase?

Ten-Year Endownment

Which of these life insurance riders allows the applicant to have excess coverage?

Term Rider

Which statement regarding a key employee life policy is NOT true?

The beneficiary is named by the key employee

C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What factor would affect her decision the most?

The cost

Why would the insurance Commissioner examine the records of an insurance company

To determine the solvency of the company

Life insurance companies are required to establish and maintain an anti-money laundering compliance program according to which federal regulation?

USA Patriot Act

The cash value in a(n) ___ Life Policy may fluctuate to reflect changing assumptions regarding mortality cost, interest, and expense factor

Universal

Which of the following Life insurance policies combine term insurance with an investment element?

Universal Life

A(n) ___ life policy offers the owner investments in product such as money market funds, long-term bonds and equities.

Variable

Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling?

Variable Life

which of the following policies is characterized by a flexible premium and death benefit and allows the policyowner control of the investment aspect of the plan?

Variable Universal Life

A life policy that contains a monthly mortality charge as well as self-directed investment choice is called a(n)

Variable Universal Life Policy

S owns a life insurance policy with cash values that fluctuate according to the underlying investment performance of common stocks. Which of these policies does S own?

Variable Whole Life

A foreign insurance company conducting insurance business in Texas

Was formed under the laws of another state

When does a life insurance contract become effective if the initial premium is not collected during the application process?

When producer delivers policy and collects initial premium

An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?

When the conditions of the receipt are met

When is the face amount of a Whole Life policy paid?

When the insured dies or at the policy's maturity date, whichever happens first

What does the ownership clause in a life insurance policy state?

Who the policyowner is and what rights the policyowner is entitled to

the consideration clause of an insurance contract includeds

the schedule and amount of premium payments

Which requirement must be met for an association to be eligible for a group life plan?

group was formed for a purpose other than acquiring insurance

A nonforfeiture clause gives the policyowner

guaranteed values even if the policy has lapsed

A License may be denied, suspended or revoked if the licensee?

is found guilty of misrepresentation in obtaining the license

A domestic insurance company in Texas is considered a company that

is incorporated and formed in Texas

ABC Insurance Company is actively engaging in boycott, coercion, and intimidation that results in the unreasonable restraint of trade. ABC is committing a prohibited act under Texas insurance laws covering:

unfair methods of competition

What kind of premium does a whole life policy have?

level

D needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. What kind of policy is needed?

level term

During a sales presentation for a participating life insurance policy, an agent MUST

make a prospect understand that dividends are NOT guaranteed

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

all of these statements concerning settlement options are true, except:

only the beneficiary may select

Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies?

policyowner

which of these is NOT a type of agent authority

principal

What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take the required minimum distributions from their qualified retirement plan?

50%

Three law partners form a Cross-Purchase Buy and Sell agreement. This agreement is funded with individual life insurance. How many total life policies are needed for this agreement?

6

How long can a cash surrender value payment be deffered by the insurance company under the Nonforfeiture Law?

6 Months

A temporary agent's license issued by the Commissioner of Insurance is valid for up to __ days

90 Days

Which statement regarding the Misstatement of Age provision is considered to be true?

Coverage will be adjusted to reflect the insured's true age if a misstatement of age is discovered

M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT

free-look period has expired

a long-term care rider in a life insurance policy pays a daily benefit in the event of which of the following?

inability of the insured to perform more than 2 activities of Daily Living

T, age 70, withdraws cash from profit-sharing plan and purchases a straight life Annuity. What will this transaction provide?

income that cannot be outlived by the owner

An employer that offers a qualified retirement plan to its employees is eligible to

make tax-deductible contributions to the plan

A term life rider offers the insured:

additional life coverage

A contract where one party either accepts or rejects the terms of a contract written by another party is called a contract of

adhesion

A qualified profit-sharing plan is designed to:

allow employees to participate in the profits of the company

If an insured's age was misstated on a life insurance contract, the Misstatement of Age provision requires that any death benefit payable would be

an amount that the premiums paid would have purchased at the current age

With whom may an agent legally share commissions?

another agent with the same line of insurance

An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the

applicant's physician

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

are restricted to maximum levels set by the IRS

A certificate of ___ permits an insurance company to transact buisness in Texas

authority

What action will an insurer take if an interest payment on a policy loan is not made on time?

automatically add the amount of interest due to the loan balance

Which of the following is a requirement for obtaining a Texas insurance agent's license?

be honest, trustworthy, and reliable

N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N Dies September 15. What action will the insurer take?

claim will be denied

Insurance contracts are known as ___ because certain future conditions or acts must occur before any claims can be paid

conditional

How often must an insurance agent license normally be renewed?

every two years

which of the following nonforfeiture options offer the highest death benefit?

extended term

An Insurance Company organized under New York laws and licensed to do business in Texas is considered a(n)

foreign company

Which tax would an IRA participant be subjected to on distributions received prior to age 59 1/2?

ordinary income tax and 10% tax penalty for early withdrawal

An insurance agent has a fiduciary responsibility to all of the following EXCEPT

other agents

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

Under federal tax laws, what is the tax treatment for an employer providing 50k of a contributory group Term Life plan to all its eligible employees?

portion of the premiums paid for by the employer may be a tax deduction

A limited-pay life policy has:

premium payments limited to a specified number of years

A retirement plan that sets aside part of the company's net income for distributions to qualified employees is called a

profit sharing plan

An example of rebating would be:

returning a portion of a premium as inducement to purchase insurance

Which of the following is NOT a required provision in group life policies?

right to loan

To terminate an agent's appointment, an insurance company must

send termination notice to the Texas Department of Insurance

Who is liable when an insured suffers a loss on a policy sold by an agent through an insurer not authorized to conduct business in Texas?

the agent

In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and:

the initial premium

The consideration clause in a life insurance policy indicated that a policyowner's consideration consist of a completed application and

the initial premium

A Policy of adhesion can only be modified by whom?

the insurance company

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

the insured's total loan value

Life and health insurance policies are

unilateral contracts

Low long does an insurance company appointment remain in force

until terminated

The free-look provision begins:

upon receipt of the policy by the policy owner

A(n) ___ annuity pays benefits based on units rather than stated dollar amounts

variable

Which type of life policy contains a monthly mortality charge as well as self-directed investment choices?

variable universal life

What is required for an agent whose license has been revoked?

wait at least 5 years before applying for a new license

T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive?

$0

T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. Five years later, T commits suicide. How much will the insurer pay?

$50,000

All of the following statements about traditional individual retirement accounts are false EXCEPT

10% penalty is applied to withdrawals before age 59 1/2

Which of the following statements about noncontributory employee group life insurance is FALSE?

A minimum number of employees is required to participate

Before a life policy is issued, which of these contract elements is necessary:

A signed application by the prospect

The combination of Whole Life and ___ Term insurance is referred to as a Family Income Policy

Decreasing

P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase?

Deferred

When an individual is planning to protect his family with life insurance, one method of doing so is called the needs analysis. What exactly does needs analysis involve?

Establishes the needs of the individual and his dependents

Which of these provisions is NOT required in the life insurance policies?

Extended Term

What is the monetary penalty for willfully violating a cease-and-desist order?

Fine up to 500

Who makes the legally enforceable promises in an unilateral insurance policy?

Insurance Company

J is issued a Life Insurance policy with a death benefit of $100,000. She pays $600 per year in premium for the first 5 years. The premium then increases to $900 per year in the sixth year, and remains level thereafter. The policy's death benefit also remains at $100,000. Which type of Life Insurance policy is this?

Modified Premium Life

which of the following is TRUE about a qualified retirement that is "top heavy"

More than 60% of plan assets are in key employee accounts

When will a hearing be held after a notice of hearing, alleging participation in unfair or deceptive act, is served to a licensee or insurer by the Commissioner?

No sooner than 6 days.

The consideration clause in a life insurance contract contains what pertinent information?

amount of premium payments and when they are due

Which of these actions should a producer take when submitting an insurance application to an insurer?

inform insurer of relevant information not included on the application

Which of these needs is satisfied by Adjustable Life insurance?

insured's needs for flexible premiums

An example of an unfair claims settlement practice is

Turning down a claim without providing basis of denial

A(n) __ contained in a life insurance policy states that the policy will not cover certain risks

exclusion

When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n)

exclusion

An underwriter determines that a life insurance applicant's risk should be reclassified due to a health issue. This policy may be issued with a(n)

extra premium

In life insurance, the needs approach is used mostly to establish

how much life insurance a client should apply for

The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called a(n):

Accidental Death and Dismemberment (AD&D Rider)

P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount?

Accidental Death and Dismemberment Clause

Which of the following actions does the Commissioner of Insurance NOT have the power to conduct?

Activate insurance companies' financial reserves

Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the following insurance contract features?

Aleatory

Which of the following statements is CORRECT regarding the tax treatment of a lump-sum payment paid to a life insurance policy's primary beneficiary?

All proceeds are income tax free in the year they are received

What is an organization that solicits insurance only to its members?

Fraternal Benefit Society

What is considered a valid reason for small businesses to insure the lives of its major shareholders?

Fund a buy-sell agreement

Tom has a qualified retirement plan with his employer that is currently considered to be 80% "vested". How can this be interpreted?

If Tom's employment is terminated, 20% of the funds would be forfeited

In regards to representations or warranties, which of these statements is TRUE?

If material to the risk, false representations will void a policy

How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy?

If the primary beneficiary dies before the insured

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

Immediate annuity

When must insurable interest exist for a life insurance contract to be valid?

Inception of the contract

what type of life policy covers two lives and pays the face amount after the first one dies

Joint Life Policy

K's whole life insurance policy lapsed two months ago due to nonpayment. She would now like to reinstate the policy. All these statements are correct about the policy's reinstatement EXCEPT:

K will forfeit the right to use the automatic loan provisions upon reinstatement

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

Level

Which of these would be considered a Limited-Pay Life policy?

Life Paid-Up at age 70

A whole life insurance policyowner does not wish to continue making premium payments. Which of the following enables the policyowner to sell the policy for more than its cash value

Life settlement contract

the accelerated death benefit provision in a life insurance policy is also know as

Living Benefit

An insured's inability to preform 2 or more activities of daily living may trigger which type of life policy rider?

Long term care

which of these is an element of a single premium annuity

Lump-Sum Payment

Which of the following information is NOT required to be included in a Whole Life policy

Policy's guaranteed dividend table

The ___ is authorized to assign life insurance policy as collateral for a loan.

Policyowner

Who has the right to change a revocable beneficiary?

Policyowner

Which of these characteristics is consistent with a straight life policy?

Premiums are payable for as long as there is insurance coverage in force

What benefit does the Payor clause on a Juvenile Life policy provide?

Premiums are waived if payor becomes disabled

which of the following actions is NOT possible with a universal life policy?

Premiums may be applied as a credit against income tax

What determines the full amount of Social Security retirement benefits a qualified individual is entitled to receive

Primary Insurance Amount (PIA)

Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determine:

Probability of making timely premium payments

Whole Life insurance is sometimes referred to as "straight life" what does the word "straight" indicate when using this phrase?

The duration of premium payments

D was actively serving in the Marines when he was killed in an automobile accident while on leave. His 100k Whole life policy contains a War Exclusion clause. How much will D's beneficiary receive?

The full face amount

J chooses a monthly premium payment mode on his Whole Life insurance policy. Which of these statements are correct?

The gross premium is higher on a monthly payment mode as compared to being paid annually

Upon policy delivery, a signed good health statement is requested from the applicant. Why would this be necessary?

The initial premium was NOT submitted with the application

what advantage does the renewability feature give to a term policy?

The insured may extend the coverage period

Which statement regarding the change of Beneficiary provision is true?

The policyowner can change the Beneficiary

The incontestable clause allows an insurer to

contest a claim during the contestable period

Insurance policies are offered on a "take it or leave it basis, which makes them:

contracts of adhesion

Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health?

conversion

D the agent met with a prospect and ended up selling an insurance policy. While filling out the insurance application, D makes a mistake. In this situation, D MUST

correct the information and have the prospect initial the change

Additional coverage can be added to a Whole Life policy by adding a(n)

decreasing term rider

How are surrender charges deducted in a life policy with a rear-end loaded provision?

deducted when the policy is discontinued

What is the purpose of the USA Patriot act?

detect and deter terrorism

T purchased a $100,000 single premium, Straight Life annuity 5 years ago. He has received monthly payments since the inception of the annuity. If T dies, the insurance company

does NOT have to make any further payments

B, an insurance agent, tells his clients that their rights may be impaired if they fail to complete a release form within a given period of time. B may be found guilty of:

Coercion

T is given a receipt After completing a life insurance application and paying the initial premium. Under this situation, T's coverage is

Conditional depending on the insurer's underwriting guidelines

which of the following consists of offer, acceptance, and consideration

Contract

If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?

Contributory

An individual who purchases a Life annuity is given protection against

the risk of living longer than expected

Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to file for Social Security disability benefits?

5 Months

In Texas, which of these statements regarding the Suicide clause is TRUE:

An Insurer may not use suicide as a defense against payment after the second year

P is a forty year old woman and would like to purchase an annuity that will provide a lifetime income stream beginning at age sixty. Which of the following did she NOT buy?

An immediate annuity

An example of false advertising would be:

An insurer exaggerating its dividends in a magazine advertisement

if a corporation pays the premium on a group life policy for its employees, the corporation is required to report how much additional taxable income for each employee?

Nothing

Which of these is not a reason for a business to buy key person life insurance?

a pension deficiency if the key employee dies.

An immediate annuity consists of a

Single Premium

K has inherited a large sum of money. K purchases an annuity with this sum on July 1, and starts receiving payments August 1. These payments will continue for as long as she and her spouse lives. Which type of annuity did K purchase?

Single Premium Immediate Joint Survivor Annuity

The advantage of reinstating an original life policy is

The premiums are based on a younger age

Under a Renewable Term Policy,

The renewal premium is calculated on the basis of the insured's attained age

S, age 40, is looking to buy a Life Insurance policy that will allow for increases or decreases in coverage as his needs change. The policy best suited for S would be

Universal life

Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options?

Variable

Which of these type of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options?

Variable Life

Y purchased 100k worth of permanent protection on himself and 50k worth of of 10- year term coverage for is wife on the same policy. Which of these policies did Y purchase?

Whole Life Policy with an other Insured Rider