Chapter 5

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

Pam is the primary beneficiary of a life insurance policy and wants to let the death benefit accumulate and receive only the monthly investment proceeds. Which settlement option should she choose?

Interest Option

A beneficiary has just received a claim payment for a life insurance policy. Which of the following is TRUE regarding the federal income tax liability owed?

No federal income tax is owed on life insurance proceeds

Which of the following is NOT a component of determining policy premiums?

Dividends

Which of these is the automatic mode of settlement for life insurance policy proceeds?

Lump-sum

Which of the following is NOT an insurer policy expense?

Premiums

A spendthrift clause in a life insurance policy

restricts the ability of the beneficiary to assign benefits

Premiums are best described a

the amount an insured pays per unit of coverage

When calculating life insurance premium rates, which component is affected by an insured's age and gender?

Mortality

Which of the following describes the number of deaths in a year compared to the number of people in a select group?

Mortality rate

A creditor would be allowed rights to life insurance policy proceeds if which of the following beneficiaries is chosen?

The insured's estate

Which settlement option involves having the proceeds remain with the insurer and earnings paid on a monthly basis to the beneficiary?

interest only

How are death benefits that are received by a beneficiary normally treated for tax purposes?

Exempt from federal income taxes

Which of the following is NOT a life insurance settlement option?

Extended term option

A beneficiary receives only the death benefit earnings in which settlement option?

Interest option

Sharon is the policyowner of a $50,000 life insurance policy. Her son, Mike, is the beneficiary. If Sharon MUST obtain Mike's signature in order to change the beneficiary, what kind of beneficiary designation is this

Irrevocable


संबंधित स्टडी सेट्स

A&P II: Lecture Exam 3: Notes 6: Pulmonary Ventilation

View Set

Clinical Medicine II Exam 6 - Cardiology Part 2

View Set

Title: The Electronic Health Record for the Physician's Office with SimChart for the Medical Office

View Set

American History Chapter 24 NWCC Weekly Questions

View Set

Academic and Interpersonal Skills: Mastery Test

View Set

Howard School - Plessy v. Ferguson

View Set

Фармакология,Антибиотици

View Set

AP Chemistry Comprehensive Review

View Set

RN Comprehensive Online Practice 2023 B

View Set