LIFE INSURANCE

Which of these arrangements allows one to bypass insurable interest laws?

Investor-Originated Life Insurance

Is not considered to be a benefit under Social Security?

Unemployment

What is the contestability period for life insurance polices in Kansas?

2 years

A policyowner may generate taxable income from which of these divided options?

Accumulation at Interest

When an insurance application is taken by a producer, which of these statements is true?

Any changes made on the application require the applicant's initials

S has a Whole Life Policy with a premium payment due soon. which provision would keep the policy in force if S doesn't make the required payment and the policy has adequate cash value from which the premium payment can be made?

Automatic Policy Loan

Which rider provides coverage for a child under a parent's life insurance policy?

Child Term Rider

Which of these types of polices may NOT have the automatic Premium Loan Provision attached to it?

Decreasing Term

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

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

Exclusion

Is NOT a required provision in an individual life policy?

Extended Term

What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's death?

Face amount plus the policy's cash value

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

In a Life Insurance Contract, an insurance company's promise to pay stated benefits is called the:

Insuring clause

How are policyowner dividends treated in regards to income tax?

Interest on accumulations is taxed

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 is an element of a single premium annuity?

Lump-Sum payment

The Commissioner of Insurance may issue a(n)_______________ to assure compliance with the law.

Order

TRUE in regards to a Policy Loan?

Past-due Interest on a policy loan is added to the total debt.

TRUE in regards to a policy loan?

Past-due interest on a policy loan is added to the total debt

Which of these do NOT constitute policy delivery?

Policy issued with a rating

a(n) _________ sells, solicits, or negotiates insurance on behalf of insurance companies for compensation.

Producer

Type of permanent life insurance polies offers the highest initial cash value?

Single Premium

T would like to be assured $10,00 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase?

Ten-Year Endowment

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

The insured may extend the coverage period

A Level Premium indicates?

The premium is fixed for the entire duration of the contract.

How does a typical Variable Life Policy investment account grow?

Through mutual funds, stocks, bonds

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

USA Patriot Act

A life insurance policy which insures that the premium will be paid if the insured becomes disabled has what kind of rider attached?

Wavier of Premium

In an individual retirement account (IRA), rollover contributions are:

not limited by dollar amount

An example of rebating would be?

returning a portion of a premium as inducement to purchase

The reason for backdating a policy is

to obtain a premium rate based on an earlier age