Guaranteed 2023 Missed

Records related to life insurance advertisements must be kept on file by the insurer for what minimum period of time?

4 years

To attain fully insured status under Social Security, an individual must have earned how many credits?

40

A distribution from an employer-sponsored retirement plan or from an IRA is eligible for a tax-free rollover if it is reinvested in an IRA within

60 days.

All of the following statements about mutual insurance companies are correct EXCEPT

Policy dividends issued by mutual companies are guaranteed and not taxable.

All of the following statements about indexed whole life insurance are correct EXCEPT

The policy face amount remains level throughout the life of the policy.

All of the following are true of the Survivorship Life policy EXCEPT

The premium is based on the age of each insured.

Keogh (HR-10) plans are qualified plans for

The self-employed.

How long is the grace period for an individual life insurance policy?

1 month

Where are premiums from fixed annuities invested?

A general account

Which of the following would NOT trigger the payment of Accelerated Death Benefits?

Being permanently disabled

Which of the following statements is true regarding SIMPLE plans?

Contributions and earnings are tax-deferred until funds are withdrawn.

Which of the following employee benefits essentially provides the employee with a wage increase and directs that wage increase to be spent on a life insurance policy?

Executive Bonus

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

Extended term

J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose?

Fixed Amount

An insured bought an insurance policy that requires him to pay $150 in premiums on the 15th of each month. He then takes an extended vacation and forgets to pay the premium. Ten days later, his policy is still in effect and has not lapsed. Which policy provision allowed for this?

Grace period

As an insurer's field underwriter, a producer has all of the following responsibilities EXCEPT

Issuing policies on behalf of the insurer.

An insurance company that is owned by the policyholders is called a

Mutual insurer.

A stock insurer is defined as an insurer

Owned by its stockholders.

When the owner of a participating whole life policy uses the dividend to provide more life insurance coverage, which of the following dividend options is being used?

Paid-up additions

In contrasting stock insurers with mutual insurers, which statement is true?

Stock insurers are owned by the shareholders and issue nonparticipating policies.

When term insurance is added to the main policy to enhance the policy or provide added benefit or coverage, it is called a

Term rider.

Variable life insurance is regulated by all of the following entities EXCEPT

The U.S. Department of Treasury.

All of the following are true about Group Life insurance EXCEPT

The employer is the beneficiary.

What happens to the face amount of a whole life policy if the insured reaches the age of 100?

The face amount is paid to the insured.

Which of the following is required in order for a plan to be qualified?

The plan must be formally written and communicated to the employees.

All of the following are general requirements of a qualified plan EXCEPT

The plan must be temporary.

Which of the following would be TRUE of both the fixed-period and fixed-amount settlement options?

Both guarantee that the principal and interest will be fully paid out.

Partners in a business want to make sure that if one of them were to pass away, their surviving family will receive a fair value for their portion in the business. What life insurance arrangement would be most suited for transitioning the business?

Buy-Sell Agreement

Which of the following is true of the taxation of cash values in a business life insurance policy?

Cash values grow tax deferred.

An employee dies having 6 quarters of coverage during the previous 13-quarter period. What status of coverage does the employee have under Social Security?

Currently insured

During policy solicitation, an insurer exaggerates the financial condition of one of its competitors, and makes it sounds worse than it is. This is an example of an unfair trade practice of

Defamation.