LIFE INSURANCE PRACTICE EXAM

Annuitant

Which of the following indicates the person upon whose life the annuity income amount is determined?

403(b) Tax-Sheltered Annuity (TSAs)

Which of the following retirement plans is a special tax favored plan for NONPROFIT, charitable, educational or religious groups?

Accumulation at Interest

Which of the following is NOT a nonforfeiture option in whole life policies?

Continuous Premium (straight) life

The most common type of whole life insurance where premiums are payable over the whole life of the insured to age 100 is called.

All annuities (Variable, Deferreed & Equity Indexed)

Which of the following annuity products requires an agent to hold a securities license?

Fixed-Period Installments

A life settlement option that pays out the death benefit is. Incrementally, in a specified amount until all of the proceeds are exhausted, is called

20-pay life

All other factors being equal, which of the following types of policies will accumulate cash value at the fastest rate.

Free look

An agent delivers a policy to an insured, and 9 days later the insured returns the policy and wants a complete refund. What provision covers this circumstance?

Equity Indexed Annuity

An annuity in which investment growth is dependent on the performance of an index such as the Standard and Poor's 500 is called a(n)

Provide the annuitant with an interest rate that is lesser of the guaranteed or current rate

An annuity is considered fixed when it does all of the following EXCEPT

The coverage decrease but the premiums stay the samw

At age 25, an individual purchased a decreasing term policy. What happens to the coverage and the premiums as the insured gets older?

Underwriting process

Determine the company's risk regarding a proposed insured

31 days

How long does an employee have to convert group policy coverage to an individual policy without evidence of insurability?

Adjusts the death benefit based on the premiums that were paid

If a misstatement of age is discovered during the processing of a life insurance claim what will the insurer do?

Either the cash value or the premiums paid, whichever is greater

If an annuitant dies during the accumulation period, what will the beneficiary receive?

The portion that exceeds the premiums paid IS taxable

If the cash value exceeds the premiums paid in a whole life policy, what are the tax consequences if the policy is surrendered?

Agents Report

This is the prtbirbthenapplication that provides information about an applicants dinadial condition and character, as well as the purpose of sale and how long the agent has known the applicant:

Insurable Interest Exists

To prevent people from profiting from a loss, insurers is the certain

Buy-Sell Agreement

Two business partners own life insurance on each other. If one partner dies, which of the following contracts will allow the surviving partner to use the death benefit to purchase the deceased's business interests?

Contestability

What does the payor benefit rider protect?

Dividends are NOT taxable

Which statement is INCORRECT concerning policy dividends

Life income annuity

Which type of annuity settlement stops when the annuitant dies?

Adjustable life

Which type of policy allows the insured to change the amount of the dwah benefit, the amount of premium, or the type of coverage S their needs change?

Single premium immediate annuity

An annuity that is purchased with a lump-sum payment, and that begins income payments within one year is a

Delivered

An insurer mails an insurance policy to a new policyowner. When the insurer relinquishes control of the policy, the policy is considered

Nonadmitted

Any insurer who is NOT approved to do business in this state is considered

Bobs estate

Betty is the only beneficiary named on her husband Bob's policy which has a Common Disaster provision (within 90 days death benefit will go to primary estate) They are in a car wreck, and Bob dies instantly. Betty lives for 29 days. Who will receive the death benefit?

Limited Payment

What type of permanent insurance allows the policy owner to pay for a policy in a specified period of time, and the policy owner does not have to make any more premium payments for the life of the policy?