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An employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage

$50,000

Which of the following statements concerning buy-sell agreements is true?

Buy-sell agreements are normally funded with a life insurance policy.

In determining how material a piece of information is to each party of a contract, the value is not determined by the event itself, but solely by which of the following?

Influence this information would have in forming an estimate of the advantages or the disadvantages of the contract.

An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100 is called

Single premium whole life.

When a life insurance policy stipulates that the beneficiary will receive payments in specified installments or for a specified number of years, what provision prevents the beneficiary from changing or borrowing from the planned installments?

Spendthrift provision

The paid-up addition option uses the dividend

To purchase a smaller amount of the same type of insurance as the original policy.

To which of the following products does the Replacement Regulation apply?

Whole life insurance

An applicant for insurance is requesting more information from her agent about a claim that is currently being settled. Within what time period must the agent respond?

15 days

An applicant buys a nonqualified annuity, but dies before the starting date. For which of the following beneficiaries would the interest accumulated in the annuity NOT be taxable?

Spouse

An agent is a legal person who acts on behalf of

The principal.

Which of the following is NOT a legitimate use of annuities by businesses?

Creating a tax shelter

When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called a(n)

Executive bonus.

Which of the following best defines earned surplus?

Insurer's unassigned funds.

When an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy, as well as a refund of all of the premiums paid. Which rider is attached to the policy?

Return of premium