2nd test 11/25
All of the following are TRUE of the federal tax advantages of a qualified plan EXCEPT
At distribution, all amounts received by the employee are tax free.
A tax-sheltered annuity is a special tax-favored retirement plan available to
Certain groups of employees only.
What is another name for interest-sensitive whole life insurance?
Current assumption life
All of the following are dividend options EXCEPT
Fixed period installments
An applicant for a license in Texas must include a statement with his application that provides information about all the following EXCEPT
Intending to apply for another license.
The premium of a survivorship life policy compared with that of a joint life policy would be
Lower.
During replacement of life insurance, a replacing insurer must do which of the following?
Obtain a list of all life insurance policies that will be replaced
Which of the following individuals must have insurable interest in the insured?
Policyowner
If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a
Settlement option.
An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?
The insured may renew the policy for another 10 years, but at a higher premium rate.
In a survivorship life policy, when does the insurer pay the death benefit?
Upon the last death
Which of the following types of annuities will generally provide the highest monthly income?
3 Straight life
Conversion to an individual whole life policy is permitted without evidence of insurability within how many days of the termination of employment?
31 days
How soon from the termination of debt under a credit life insurance policy must a creditor provide notice to the insurer?
60 days
An agent's license will terminate within how many days from the due date of obligatory fees and continuing education requirements?
90
Which of the following is another term for an authorized insurer?
Admitted
The president of a manufacturing company has offered one of the company's officers a special individual annuity plan that is unavailable to lower-echelon employees. This plan would be funded with before-tax corporate dollars, and it does not meet government approval standards. This annuity plan is
A nonqualified annuity plan.
All of the following statements about the continuing education requirement in this state are true EXCEPT
All licensed agents must comply by January 1 of even-numbered years.
In Texas, how is the Commissioner of Insurance placed in office?
Appointed by the Governor for a term of 2 years
Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income?
Depreciation period
The usage of words or symbols that are similar to what entity is prohibited in life insurance advertisements?
Federal government
Which of the following is an eligibility requirement for all Social Security Disability Income benefits?
Have attained fully insured status
Who makes up the Medical Information Bureau?
Insurers
Which of the following best describes the MIB?
It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance.
An employee is joining a group insurance plan. In order to avoid having to prove insurability, what must the employee do?
Join during the open enrollment period
An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?
The date of medical exam
for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT
The insured's age at death.
All of the following are TRUE statements regarding the accumulation at interest option EXCEPT
The interest is not taxable since it remains inside the insurance policy.
All of the following statements apply to temporary licenses EXCEPT
They allow licensees to sell new policies.
Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?
Those who have been insured under the plan for at least 5 years
After filing a claim, an insured tells the insurer that there is more than one insurance policy in force. That insurer sets aside the claim until it hears what the other company will pay. The insurer's action will be classified as
Unfair.
Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?
Universal Life - Option A
The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called
Waiver of premium.
When would a 20-pay whole life policy endow?
When the insured reaches age 100