Iowa Life Exam
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 does a Medicare Supplement policy cover?
Allowable amounts under Medicare Part B
The Consideration clause in a life insurance contract contains what pertinent information?
Amount of premium payments and when they are due
What does the insuring agreement in a Life insurance contract establish?
An insurer's basic promise
When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n)
Anti-Money Laundering violation
An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction?
20%
A producer must notify the Insurance Division within ___ days of a felony conviction
30
The required free-look period in a Medicare Supplement policy is ____ days
30
Within ____ days after a policy delivery, a Medicare Supplement policy can be returned for a 100% premium refund
30
N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life insurance policy with level premiums, permanent protection, and be paid-up at retirement. Which of these should N purchase?
30 Pay Life
An insurer may normally delay the payment of a cash value loan or surrender value for up to
6 months
How many days must the insured wait to take legal action against a health insurer after submitting written proof of loss if the insurer refuses to pay?
60
The combination of Whole Life and _________ Term insurance is referred to as a Family Income Policy
Decreasing
Which of these types of policies may not have the Automatic Premium Loan provision attached to it?
Decreasing Term
Company Z has a Cross Purchase Buy-Sell Agreement in place among its three founding partners. If the agreement is funded with individual life insurance, what would it require?
Each partner must own a policy on the other partners
P owns a $25,000 Life Policy that pays the face amount to him if he lives to age 70, or to his beneficiary if he dies before age 70. What kind of policy does P own?
Endowment at age 70
Which of these statements is incorrect regarding the federal income tax treatment of life insurance?
Entire cash surrender value is taxable
The payments on Q's annuity are no less than $250 quarterly. Which of the following annuities does Q own?
Flexible Installment Deferred
What is being delivered during a policy delivery?
Insurance contract to the proposed insured
All of these statements about the Waiver of Premium provision are correct, except:
Insured must be eligible for Social Security disability for claim to be accepted
How are policyowner dividends treated in regards to income tax?
Interest on accumulations is taxed
All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death EXCEPT
Interest only
What type of life policy covers 2 lives and pays the face amount after the first one dies?
Joint Life policy
K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable?
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
Which of these are not an example of a nonforfeiture option?
Life Income
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 these is not considered to be a right given to a policyowner?
Modify a provision in the insurance contract
K owns a Whole Life policy. If K wants an increasing Death Benefit to protect against inflation, which Dividend Option should she choose?
Paid-Up Additional Insurance
Which statement is true in regards to a policy loan?
Past-due interest on a policy loan is added to the total debt
A father who dies within 3 years after purchasing a life insurance policy on his infant daughter can have the policy premiums waived under which provision?
Payor provision
A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the:
Policy Loan provision
Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation?
Policy was returned within the free-look period, premium will be fully refunded
Which of these Nonforfeiture Options continue a build-up of cash value?
Reduced Paid-up
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
Which of these terms accurately defines an underwriter's assessment of information on a life insurance application?
Risk classification
The Common Disaster clause provides that if both the insured and the sole named beneficiary were to die in a common accident, which of the following is true?
This clause provides the payment of proceeds to the insured's estate
J is a producer who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of?
Twisting
Life insurance immediately creates an estate upon the death of an insured. Which of the following policies is characterized by a guaranteed minimum death benefit?
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
Which of these is an element of a Variable Life policy?
a fixed, level premium
Which statement is true regarding a Variable Whole Life policy?
a minimum guaranteed Death benefit is provided
A Cost of Living rider gives the insured
additional death benefits
A Term Life rider offers the insured
additional life coverage
How long does the coverage normally remain on a limited-pay life policy?
age 100
Group life insurance policies are generally written as:
annually renewable term
To be eligible for Social Security disability benefits, an employee must be unable to perform
any occupation
An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the
applicant's physician
Under a Graded Premium policy, the premiums
are lower during the policy's early years
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
T is the policyowner for a Life Insurance policy with an Irrevocable beneficiary designation. If T wishes to change the beneficiary, T must obtain permission from the
beneficiary
Which statement about a whole life policy is true?
cash value may be borrowed against
Under an Interest Sensitive Whole Life policy,
cash values are determined by interest rates
A company that owns a life insurance policy on one of its key employees may do all the following except:
change the policy's interest rate
S the producer has deposited premiums collected from clients into his personal bank account. This illegal act is called
commingling
The incontestable clause allows an insurer to:
contest a claim during the Contestable Period
T the producer is trying to dissuade a policyowner from replacing an existing insurance policy. This action taken by T is called
conversation
A __________ __________ is the signed document that starts the free-look period
delivery receipt
What is the purpose of the USA Patriot Act?
detect and deter terrorism
The Life and Health Insurance Guarantee Association is
funded by insurance companies through assessments
What is the required renewability status of all Medicare supplement policies?
guaranteed renewable
A Nonforfeiture clause gives the policyowner
guaranteed values even if the policy has lapsed
The type of annuity that can be purchased with one monetary deposit is called an
immediate annuity
All of the following statements regarding a Tax Sheltered Annuity are true except
income derived from the TSA is received income tax-free
Quarterly premium payments increase the annual cost of insurance because
interest to the insurer is decreased while the administrative costs are increased
Dividends paid from a life insurance policy are
issued by the insurer
Credit life insurance is:
issued in an amount not to exceed to the amount of the loan
When funds are shifted straight from one IRA to another IRA, what percentage of the tax is withheld?
none
An example of rebating would be
offering a client something of value not stated in the contract in exchange for their business
Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies?
policyowner
A Limited-Pay Life policy has:
premium payments limited to a specified number of years
Which of the following actions is not possible with a Universal Life policy?
premiums may be applied as a credit against income tax
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
_________ is the act of offering an applicant something of value as an inducement to purchase an insurance policy
rebating
What is the Suicide provision designed to do?
safeguard the insurer from an applicant who is contemplating suicide
Upon delivery of a rated life insurance policy, the Producer must obtain each of the following EXCEPT
signed HIPAA disclosure
Obtaining information from the applicant to determine whether an insurance or annuity product is appropriate is called
suitability
Which of the following statements about accumulated interest earned on dividends from an insurance policy is true?
taxed as ordinary income
B the producer has died and leaves behind a spouse. In order for B's clients to continue being serviced, the Commissioner has the ability to issue to the producer's spouse a
temporary insurance license
The advantage of reinstating an original life policy is
the premiums are based on a younger age
All of these statements about Equity Indexed Life Insurance are correct, except:
the premiums can be lowered or raised, based on investment performance
Under a Renewable Term policy,
the renewal premium is calculated on the basis of the insured's attained age
An individual who purchases a Life annuity is given protection against
the risk of living longer than expected
The reason for backdating a policy is
to obtain a premium rate based on an earlier age
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 statements about a Guaranteed Insurability Option rider is not true?
Evidence of insurability is required when the option is exercised
Which of these statements describe a Modified Endowlment Center?
Exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract
An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period?
Full face amount minus any past due premiums
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
Which of these is not a reason for purchasing life insurance on the life of a minor?
If both parents were to die, it would provide death benefits to the child
Which statement regarding third-party ownership of a life insurance policy is true?
It is used extensively in estate-planning as well as business circumstances
Which of the following combination plans is designed to protect an insured from an unpaid mortgage balance upon premature death?
Joint Life
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
An insured's inability to perform two or more activities of daily living may trigger which type of life policy rider?
Long term care
Which of these factors do not play a role in the underwriting of a life insurance policy?
Marital status
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 the following information is not required to be included in a Whole Life policy?
Policy's guaranteed dividend table
One becomes eligible for Social Security disability benefits after having been disabled for
5 months
What is the maximum fine for willfully violating the unfair trade practice laws of Iowa?
5k
A life policy loan in Iowa cannot charge a fixed rate of interest higher than
8%
An individual must submit an application for a producer's license within ___ days after successfully passing the state examination.
90
What kind of life insurance product covers children under their parent's policy?
A Term rider
Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of Term coverage on himself under the same policy. What kind of policy should Q purchase?
A Whole life policy with other insured rider
An Iowa insurance producer has violated an unfair trade practice. The Commissioner may penalize the producer in which of the following manner?
A fine, only after a hearing
A policyowner may generate taxable income from which of the following Dividend Options?
Accumulation at Interest
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
When a policyowner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply?
Conversion provision
What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability?
Convertible Term
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
K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true?
Proceeds will be payable to K's estate if P dies within a specified time
What type of life policy covers two people and pays upon the death of the last insured?
Survivorship
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 Endowment
How often must the Commissioner examine each domestic insurance company?
every 5 years
The Commissioner may
examine insurer solvency
Term insurance has which of the following characteristics?
expires at the end of the policy period
An underwriter determines that an applicant's risk should be recategorized due to a health issue. This policy may be issued with a(n)
extra premium
All of these are characterstics of an Adjustable Life policy, except:
face amount can be adjusted using policy dividends
Which of the following actions require a policyowner to provide proof of insurability in an Adjustable Life policy?
increase face amount
Who issues Medicare Supplement policies?
insurance companies
Which of these needs is satisfied by Adjustable Life insurance?
insured's need for flexible premiums
What type of life insurance incorporates flexible premiums and an adjustable death benefit?
Universal Life
A _____________ Life policy offers the owner investment in products such as money-market funds, long-term bonds and eequities.
Variable
A life policy that contains a monthly mortality charge as well as self-directed investment choices is called a
Variable Universal Life policy
A ___________ ____________ Life policy combines investment choices with a form of Term coverage
Variable Universe
LIfe insurance immediately creates an estate upon the death of an insured. Which of the following policies is characterized by a guaranteed minimum death benefit?
Variable life
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
A Whole Life insurance policyowner does not have the right to
change the grace period
a producer suggesting that an insurance policy is like a share of stock
misrepresentation
Which of these is not an element of Life insurance premiums?
morbidity rate
Which tax would an IRA participant be subjected to on distributions received prior to age 59 1/2?
ordinary income tax and a 10% tax penalty for early withdrawal
Whole Life insurance policies are contractually guaranteed to provide each of the following, except:
partial withdrawal features beyond a surrender charge period
Under a trustee group life policy, who would be eligible for a certificate of coverage?
employee
What does a 401k plan generally provide its participants?
salary-deferral contributions
The Consideration clause in a life insurance policy indicates that a policyowner's consideration consists of a completed application and
the initial premium
Insured losses are covered immediately after a health policy is reinstated when
the losses result from accidental injuries
All of these are considered to be a benefit under Social Security, except
unemployment
A producer's license may be suspended or revoked if the licensee
writes primarily controlled business
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary?
$20,000 death benefit
An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a
$25,000 individual whole life policy
Life insurance death benefits up to ________ are guaranteed by the Iowa Life and Health Guarantee Association
$300,000
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
A policy loan is made possible by which of these life insurance policy features?
Cash value provision
In a 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 of the following Nonforfeiture options offers the highest death benefit?
Extended term
P purchases a $50,000 whole life insurance policy in 2005. One of the questions on the application asks if P engages in scuba diving, to which P answers "No". The policy is then issued with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related accident in 2011. What will the insurer pay to P's beneficiary?
$50,000 minus any outstanding policy loans
____ of personal life insurance premiums is usually deductible for federal income tax purposes.
0%
G purchased a Family Income policy at age 40. The policy has a 20-year rider period. If G were to die at age 50, how long would G's family receive an income?
10 years
S is a producer. His appointment with his insurer has been terminated. The insurer is required to mail a notice of termination to S within ____ days
15
How many days is a temporary producer's license valid?
180
When an employee is terminated, how long do they have to convert group life coverage to an individual plan?
31 days
How long does an individual have to rollover funds from an IRA or qualified plan?
60 days
Inflation protection is not required in a partnership long-term care policy if the individual is at least how old at issue
76
S has a Whole Life policy with a premium payment due soon. Which provision would keep the policy in force if S does not make the required payment and the policy has adequate cash value from which the premium payment can be made?
Automatic Policy Loan
S is covered by a whole life policy. Which insurance product can cover his children?
Child term rider
Which rider provides coverage for a child under a parent's life insurance policy?
Child term rider
On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently taken place with the doctor. What action should the producer then take?
Collect initial premium along with a signed health statement
F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule. What kind of policy is needed?
Decreasing term policy
How are surrender charges deducted in a life policy with a rear-end loaded provision?
Deducted when the policy is discontinued
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 of risk. Which product would S be advisesd to purchase?
Equity index insurance
What does a Face Amount Plus Cash Value Policy pay upon the insured's death?
Face amount plus the policy's cash value
What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?
Family Maintenance Policy
How would a contingent beneficiary receive the policy proceeds in an AD&D policy?
If the primary beneficiary dies before the insured
A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan, minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over?
Income taxes plus a 20% penalty tax on $30,000
Information obtained from a phone conversation to the proposed insured can be found in which of these reports?
Inspection report
Which is the state's high-risk pool coverage for residents who cannot obtain coverage through the traditional insurance market?
Iowa Comprehensive Health Insurance Association
T has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving payments for 20 years, the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this?
Life Annuity with Period Certain
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?
Life Income
During the course of a Medicare Supplement sale, T the producer determines there is an existing policy being replaced. Which of these actions is T not required to perform?
Notify the replaced insurance company
When a Medicare Supplement policy is delivered, disclosure standards require that an __________ of Coverage be provided to the insured
Outline
In a life insurance policy, which provision states who may select policy options, designate and name a beneficiary, and be the recipient of any financial benefits from the policy?
Owner's Rights
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 is true concerning a Variable Universal Life policy?
Policyowner controls where the investment will go and selects the amount of the premium payment
Under federal tax laws, what is the tax treatment for an employer providing $50,000 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
Which type of plan allows an employer to give money to an employee for buying a life insurance policy and also perits the employee to select the beneficiary?
Split-dollar
K is shopping for a permanent life insurance policy that will offer her the most protection per dollar of annual premium. Which of these policies best fits her needs?
Straight life
What type of life insurance are credit policies issued as?
Term
Which of these situations is not considered to be a replacement?
Term coverage is converted to an individual permanent plan with the same insurer
Which type of life insurance gives the greatest amount of coverage for a limited period of time?
Term life
Which of these life insurance riders allows the applicant to have excess coverage?
Term rider
What is the underlying concept regarding level premiums?
The early years are charged more than what is needed
J chooses a monthly premium payment mode on his Whole Life insurance policy. Which of these statements is correct?
The gross premium is higher on a monthly payment mode as compared to being paid annually
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
When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take?
Void the policy only if it is discovered during the Contestable period and proven to be material
Y purchased $100,000 worth of permanent protection on himself and $50,000 worth of 10-year Term coverage for his wife on the same policy. Which of these policies did Y purchase?
Whole Life policy with an Other Insured Rider
A life insurance policy that provides a policyowner with cash value along with a level face amount is called:
Whole life
A Return of Premium life insurance policy is:
Whole life and Increasing term
L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the Misstatement of Age provision, the insurer will
adjust the death benefit to a reduced amount
A Universal Life policy is sometimes referred to as an unbundled Life Policy because the owner can see the interest earned, expense charges, and the
expense charges
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 an
installment refund annuity
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 an
insuring agreement
In a Life insurance contract, an insurance company's promise to pay stated benefits is called the:
insuring clause
Which of the following statemnets about long-term care insurance is correct?
it must provide coverage for at least 12 consecutive months
What kind of premium does a Whole Life policy have?
level
A term life insurance policy matures:
upon the insured's death during the term of the policy
An unintentional violation of Iowa insurance law could lead a producer to a fine of up to ______ per violation
$1,000
Under the USA Patriot Act, insurers are required to report receipt of cash payments in excess of
$10,000
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
According to Iowa law, a group life insurance policy requires a minimum of how many insureds?
10
The free look period in Iowa for individual health insurance policies is _____ days
10
Which of the following types of Term Life policies most likely contains a Renewability feature?
10 Year Convertible Term
The Commissioner of Insurance is the chief officer of the Iowa Insurance Division and is appointed by the Governor for a ___ year term
4
Credit life insurance is typically issued with which of the following types of coverage?
Decreasing term
What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of that 30 years?
Family Maintenance Policy
P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries to 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. What type of policy should P purchase?
Family Maintenance policy
N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase?
Fixed Deferred
S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?
Full benefits are payable under the master contract
Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant?
Risk classification
Post-tax dollar contributions are found in
Roth IRA investments
________ is the authority given to a producer to transact business on behalf of the insurer
appointment
When an unfair trade practice has been discovered, the Commissioner may issue a
cease and desist order
Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health?
conversion
An employee of 20 years recently retired at age 59 1/2. This employee's group life contract can be
converted to an individual permanent policy at an individual rate
What type of policy has a death benefit that adjusts periodically and is written for a specific period of time?
decreasing term
Additional coverage can be added to a Whole Life policy by adding a(n)
decreasing term rider
Additional coverage can be added to a Whole Life policy by adding a:
decreasing term rider
An employee requested that the balance of her 401(k) account be sent directly to her in one lump sum. Upon receipt of the distribution, she immediately has the funds rolled over into an IRA. What is the tax consequence of the distribution sent to this employee?
distribution is subject to federal income tax withholding
A Universal Life policy is sometimes referred to as an unbundled Life Policy because the owner can see the interest earned, cost of insurance, and the
expense charges
Which of the following actinos require a policyowner to provide proof of insurability in an Adjustable Life policy?
increase face amount
A person covered by a group major medical policy leaves the group and converts the coverage to an individual policy. Which of the following statements is incorrect about the new policy?
it pays the same benefits as the group policy
Under Iowa law, which of the following provisions is not required in a Medicare Supplement policy?
limitation on pre-existing conditions for up to 12 months
A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid
mandatory income tax withholding on the transfer amount
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
M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer will deduct the outstanding loan balance from the:
policy proceeds
A long-term care lapse notice must be delivered to both the applicant and
secondary addressee
Typically a life insurance death benefit is paid by a lump-sum payment. A __________ option is a method of distributing a Life Insurance policy's death benefit other than by a lump sum payment
settlement
The investment gains from a Universal Life Policy usually go toward:
the cash value
The most important factor to consider when determining whether to convert term insurance at the insured's attained age or the insured's original age is:
the cost
A contract owner terminates an annuity before the income payment period begins. The owner will then receive
the current contract surrender value
Who is normally considered to be the owner of a 403(b) tax-sheltered annuity?
the employee
The amount of coverage on a group credit life policy is limited to:
the insured's total loan value
When is the face amount paid under a Joint Life and Survivor policy?
upon death of the last insured
A life insurance policyowner may sell their policy to a ________________ in order to receive a percentage of the policy's face value
viatical settlement provider
ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has
waived one of its legal rights
A policy that becomes a Modified Endowment Contract (MEC):
will lose many of its tax advantages
If a 10-Year Term Life policy contains a Renewability provision, the policy will renew
without evidence of insurability