You WILL Pass ❤️ - Florida

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

___ of a personal life insurance premium is usually deductible for federal income tax purposes 100 percent 75 percent 0 percent

0 percent

A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct? -Straight life accumulates faster than Limited -pay Life-20-Pay Life accumulates cash value faster than Straight Life -Cash value accumulation of both 20-Pay life and Straight Life depend on the insurer's financial rating -20-Pay Life and Straight Life accumulate cash value at the same rate

20-Pay Life accumulates cash value faster than Straight Life

Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to apply for Social Security disability benefits? 3 4 5 6

5

how long does an individual have to rollover funds from an IRA or qualified plan? 60 days 90 days 120 days no limit

60

post tax dollars contributions are found in 401k investments traditional IRA investments simple investments Roth IRA investments

Roth IRA investments

which of the following are equity indexed annulled typically invested in corporate bonds money market accounts municipal bonds S&P 500

S&P 500

Upon delivery of a rated life insurance policy, the Producer must obtain each of the following, EXCEPT: Signed HIPAA disclosure Signed amendment Signed statement of Good Health The required premium

Signed HIPAA disclosure

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

what is the maximum number of employees (earning at least $5,000) that an employer can. have. in order to start simple retirement plan? 25 50 100 250

100

A 15-year mortgage is best protected by what kind of life policy modified whole life 15 year level term 15 year decreasing term Adjustable life

15 year decreasing term

Which of the following best describes a contingent beneficiary?

a person designated by the insured to receive policy proceeds in the event that the primary beneficiary dies before the insured

which the following is an important underwriting principal. group life insurance? physical examination are required everyone must be covered. in. the group employer must pay for the entire premium The group must be formed for the purpose of getting affordable insurance

everyone must be covered in the group

which of these is not a source. of dunking or social security benefits ?

federal government

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

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

how much like insurance a client. should apply for

a 55 year old recently received a $30,000 distribution. from a previous employer's. 401k plan,

income taxes plan a 10% penalty tax. on $30,000

t is the policy owner for a life insurance policy with an irrevocable beneficiary designation. if T wishes to change the beneficiary, T must obtain permission from the

beneficiary

what is considered to be a characteristic of an immediate annuity

benefit payments start within one payment period of purchase

Variable Whole Life Insurance can be described as A. both an insurance and securities product B. an insurance product only C. a securities product only D. the insurance company assumes the investment risk

both an insurance and securities product

K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed? daughter husbands estate k's estate trust fund

daughter

B owns a whole life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of

dditional whole life coverage at specified times

additional coverage can be added to a whole life policy by adding a(n) payout rider accelerated benefit rifer decreasing term rider automatic premium loan ride

decreasing term

T purchased a $100,000 single premium, straight life annuity 5 years ago

does NOT have any. further payments

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

Under a trustee group life policy, who would be eligible for a certificate of coverage? corporation employee employer labor union

employee

Who is normally considered to be the owner of a 403(b) tax-sheltered annuity? employee employer financial institution

employee

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

entire cash surrender value is taxable

what provision in a life insurance p policy stated the application is considered part of the contract?

entire contract provision

An annuity promises that, if the annuitant dies before receiving payments equal to the correct value, the payments will be continued to a beneficiary until an amount equal to the contract value has been paid. This type of annuity is called installment. refund annuity joint refund annuity straight refund annuity equal. value annuity

An installment Refund annuity

Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following contractual elements? -consideration -competent parties -offer/acceptance -legal purpose (insurable interest)

Legal Purpose (insurable interest)

Jay is issued a life insurance policy with a death benefit of $100,000 she pays $600 per year in premium for the first five years the premium then increases the $900 per year in the 60 year and remains level there after the policies death benefit also remains at $100,000 which type of life insurance policy is this endowment graded premium life straight life modified premium life

Modified premium life

Which of these is NOT considered to be an element of an insurance contract? the offer acceptance consideration consideration

Negotiating

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

What is the consideration given by an insurer in the Consideration clause of a life policy? promise to never cancel coverage promised to pay a health benefit to a named beneficiary promise to not raise premiums

Promise to pay a death benefit to a named beneficiary

T has a term policy that allows him to continue the coverage after expiration of the initial policy period. What type of term coverage is this? renewable increasing level decreasing

Renewable

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? Interest sensitive whole life ten year endowment variable universal life ten year renewable term

Ten-Year endowment

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

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

if the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, there are the death proceeds to be directed under the uniform simultaneous death act primary beneficiary estate primary beneficiary next of kin insureds estate insureds contiengient beneficiary

insureds contiengient beneficiary

variable annuities may invest premiums in each of the following, except: common stock money making securities insurers cooperate business account junk bonds

insurers cooperate business account

In a Life insurance contract, an insurance company's promise to pay stated benefits is called the -Insuring clause -Consideration clause -Entire Contract -Owner's rights

insuring

Credit Life Insurance

issued in an amount not to exceed the amount of the loan

an architecture firm would stand lose a lotto money in the event of the. death. of its. project. manager. which type. of policy should the firm purchase on its project manager

key person life. policy

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 of these is not an element of life insurance premiums? morbidity rate mortality rate insurers expense interest credit

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 10percent penalty for early withdraw

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? owners rights entire contract nonforfeiture insuring clase

owners rights

The reason for backdating a policy is

to obtain a premium rate based on an earlier age

which the following. types of policies pays a benefit if the Insurance goes blind? universal life AD&D Endowment Adjustable life

AD&D

All are true statements regarding. the. underwriting process, except

AIDS and HIV viruses can be conducted in a discriminatory fashion

Which of these require an offer, acceptance, and consideration? contract estoppel warranty representation

Contract

Which of these terms accurately defines an underwriter's assessment of information on a life insurance application? risk. classification warranty review insurable interest inspection report

Risk Classification

Which provision is NOT a requirement in a group life policy? accidental grace period incontestable period

accidental

a term life rider offers the insured cash value long-term care coverage disability additional life coverage

cash value

What type if employee welfare. plans are not subject to ERISA regulations? church plans major medical plans corporate qualified plans

church plans

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 claim will be paid. in full claim will be partially paid

claim will be denied

which of these actions is taken when a policy owner uses a life insurance policy as collateral v for a bank loan

collateral assignment

which of the following consists of an offer, acceptance, and consideration warranty contract representation Esteoppl

contract

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

contributory

What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability? entire contract owner's rights nonforfeiture options conversion

conversion

When a policy owner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply? extended term conversion provision 1035 exchange incontestable period

conversion provision

a universal life policy is sometimes referred to s an unbundled life policy because the owner cans see the interest earned, expenses charged, and the inflation factor commission rate inflation factor inherent risk

cost of insurance

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

traditional individual annuity distributions must start by

April 1st. of the. year following the year the participant attains 70 1/2

An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the

Fair credit reporting act

Which Federal. law allows an insurer to obtain an I inspection report on a potential insured ? medical information bureau act freedom of information act fair credit reporting act medical information act

Fair credit reporting act

S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits? No benefits are payable under the Master contract Full benefits are payable under the Master contract Full benefits are payable under the converted policy Benefits less required premium are payable under the converted policy

Full benefits are payable under the Master 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 full face amount refund of all premiums paid refund of all p premiums paid, plus interest

Full face amount minus any past due premiums

In regards to representations or warranties, which of these statements is TRUE? If material to the risk, false representations will void a policy representations are statements guaranteed to be true in every respect if material to the risk, false representations will not void a policy

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

Which of these arrangements allows one to bypass insurable interest laws? concealment indemnity contract contract of adhesion investor originated life insurance

Investor originated life insurance

On January 8, an applicant filled out an application fora. life insurance company approved the application on January 14and issued the policy. January 15. The producer delivered the policy on January 26 and collected the first premium. When did the coverage become effective? January 8 January 14 January 15 January 26

January 26

When a policy pays dividends to its policyowners, it is said to be profitable mutual nonparticipating participating

Participating

K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective? The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured The date the sales appointment was made The date the application was submitted to the insurance company The date of application

The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured

All of these statements about Equity Indexed Life Insurance are Correct EXCEPT: Can values has a minimum rate of accumulation if the gain on the index goes beyond the policy minimum rate of return, the cash value will mirror that of the index the premiums can be lowered or raised, based on investment performance tided to an equity index such as S&P 500

The premiums can be lowered or raised, based on investment performance

What type of reinsurance contract involves two companies automatically sharing their risk exposure? Treaty Facultative excess Arbitrage

Treaty

A statement madly an insured in an insurance application that must be true. to then bestow one's knowledge and which. becomes a part of the contract is known as: an insuring agreement a mutual agreement a warranty a representation

a representation

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 adhesion unilateral consideration

aleatory

A qualified profit-sharing plan is designed to

allow employees to participate in the profits of the company

which typeof contract liquidates an estate through recurrent payments ? annuity universal. like insurance whole like insurance annuity 401(k)

annuity

life and health insurance policies are multi-lateral contracts bilateral contracts unilateral contracts non-lateral contracts

unilateral

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 modifications. the insurer will than likely issue the coverage with a aviation exclusion graded benefit disability rider

aviation exclusion

which of these types of policies may not have the automatic premium loan provision? modified whole life 20-pay life endowment decreasing term

decreasing term

additional coverage can be added to a whole life policy by adding a(n) payout rider accelerated benefit rifer decreasing term rider automatic premium loan ride

decreasing term rider

How are surrender charges deducted in a life policy with a rear-end loaded provision? deducted from the death benefit deducted when the policy is discontinues deducted from the policy's cash value deducted when assigned to another policy owner

deducted when the policy is discontinued

which for the following does social security not provide benefits for survivorship dismemberment disability retirement

dismemberment

when an. individual is planning to. protect his family with. life insurance, one method of doing so is called needs analysis

establishes needs of the individual and his dependents

N is a student pilot with a large life insurance policy. Which of these features would limit the insurer's obligation in the event N was killed while flying as a student pilot? -misrepresentation -exclusion -collateral assignment -concealment

exclusion

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 inherent risk commission rate inflation factor expense charges

expense charges

An underwriter determines that a life insurance applicant's risk should be reclassified due to a health issue. This policy may be issues with a(n) extra premium concealment clause extended contestable period exclusion for the medical condition

extra premium

what is considered a valid. reasoner. small business to insure the lives of its. major shareholders

fund a buy sell. agreement

What type of like insurance incorporates flexible premiums and an adjustable death benefit? endowment policy modified whole life decreasing term universal life

universal life

how does an indexed annuity rifer from a fixed annuity

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

a life insurance policy would be considered a wagering contract without insurable inter4est premium. payment agent solicitation constructive solicitation constructive delivery

insurable interest

All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death EXCEPT Fixed Period Interest Only Fixed Amount Life Income

interest only

A life insurance arrangement which circumvents insurable interest statutes is called? a contract of adhesion an indemnity contract key person insurance investor oriented life insurance

investor oriented life insurance

A policyowner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need? revocable contingent irrevocable primary

irrevocable

What is the purpose of policy summary? it details the commissions earned by the agent it guarantees policy will. be issued it allows the consumer to compare the cost of different policies

it highlights the critical parts of the policy issued

All of these insurance products require an agent to have proper FINRA securities registration in order to sell them EXCEPT for variable life modified whole life universal variable life variable annuity

modified whole life

In an individual retirement account (IRA), rollover contributions are subject to capital gains tax subject to ordinary income tax partially limited dollar amount not limited by dollar amount

not limited by dollar amount

All of the following statements are true regarding a. policy's grace period except: past due premium waived policy loans may still be made full coverage continued grave period terms are stated in the policy

past due premium waived

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

payments are made to an annuitant for life

which of the following provisions guarantees that premiums will e waived if a juvenile policy owner becomes disabled? payor clause assignment division automatic premium loan provision family maintenance clause

payor clause

Insurance policies are considered aleatory contracts because they are "take it or leave it" contacts both parties consent to the contract performance is conditioned upon a future occurrence the contract is voidable

performance is conditioned upon a future occurrence

the underwriting process. involves all of these, except for credit report policy loan risk classification application

policy loan

on a life insurance policy, who is qualified to change the beneficiary designation> payer primary beneficiary policyowner insurer

policy owner

A policyowner is able to choose the frequency of premium payments through what policy feature?

premium mode

a policy owner is able. to choose the frequency of premium payments through what policy feature premium mode payor benefit consideration

premium mode

what benefit does the payor cause on a juvenile life policy provide?

premiums re waived. payor decoded disabled

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 paid to P's estate proceeds will be divided equally between K's and P's estate proceeds will be payable to K's estate if P dies within a specific time the courts will decide who will receive death

proceeds will be payable to K's estate if P dies within a specific time

a primary beneficiary hash died before the insured in a life insure policy. A contingent beneficiary is also named in the policy. Which of the following will occur when the insured dies? proceeds will do to the primary beneficiary estate probate will decide who receives proceeds proceeds will go to the continent beneficiary proceeds will go to the insureds estate

proceeds will fo to the contingent beneficiary

Which of these Nonforfeiture Options continue a build-up of cash value? waiver of premium extended term reduced paid-uup cash surrender

reduced paid up

Which of these provisions require proof of insurability after a policy has lapsed? -Insuring -Conversion -Reinstatement -Consideration

reinstatement

a statement made by an insured. in an insurance application that just be true to the bestow. one's. knowledge and which becomes part of the contract is known as an insuring agreement a mutual assent a warranty a representation

representation

Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called

representations

the stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligation to its policyholders is called credits reserves surplus retention

reserves

A group owned insurance company that is formed to assume and spread the liability risks of its members is known as: treaty insurer risk retention group captive insurer risk assumption group

risk retention group

Typically a life insurance death benefit is paid by lump sum payment. A(n) ____ option is a method. of distribution a life insurance. policy's. death benefit other than by a lump sum payment settlement dividend conversion aleatory

settlement

What is Old Age and Survivors Health Insurance (OASDHI) also known as? medicare social security medicaid FICA

social security

What type of life policy covers two people and pays upon the death of the last insured? joint survivorship adjustable joint

survivorship

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

whole life insurance Is sometimes referred to as straight life. what does the word straight indicate ?

the duration of premium payments

a noncontributory group term life plan is characterized by:

the entire cost of the plan is payed by the employer

A policy of adhesion can only be modified by whom? The agent the applicant the primary beneficiary the insurance company

the insurance company

The common disaster clause provides the insured and the sole named beneficiary were to die in a common accident, which of the. following is true? provides payment of proceeds to the insureds estate provides the payment of the proceeds to the beneficiary estate the estates taxes in the insureds estate maybe reduced this clause provides the payment of proceeds to the insureds estate

this clause provides the payment of proceeds to the insureds estate

a variable annuity has which of the following characteristics?

underlying equity investments

which of the following is considered an element of a variable life policy? underlying equity investments little or no risk to the insured guaranteed dividends insured assumes all the risk

underlying equity investments

all of these are considered to. be a benefit under social security, except for survivorship retirement disability unemployment

unemployment

At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? Before the. appointment is scheduled upon completion of the application at the policy's delivery

upon. completion of. the application

Which of these is considered a statement that is assured to be true in every respect? Estoppel warranty guarantee representation

warranty

at what point does a whole life insurance policy endow? at age 65 when premium paid is equal to death benefit hen cash value equals death benefit

when cash value equals the death benefit

a $20,000 life insurance policy application is complete, however the producer does not. collect the initial premium. At what point does the coverage into effect? when the applicant receives the policy and pays the initial premium when the MIB report is recieved upon policy approval upon a completed medical examination

when the applicant receives the policy and pays the initial premium

what kind of policy either pays the face value upon. death of the insured or when the insured reached age 100 whole life universal life credit life term life

whole life