IRA

What is the fine for using an unapproved assumed mane by a producer?

$250

A producer has completed 40 hours of continuing education this licensing period. How many credit hours may be carried over?

10 Hours.

Employer contributions made to a qualified plan

Are subject to vesting requirements

How are state Insurance Guaranty Associations funded?

By their members - authorized insurers

When must an IRA be completely distributed when a beneficiary is not named?

December 31 of the year that contains the fifth anniversary of the owner's death.

Insurance companies that hold a Certificate Of Authority to transact insurance in Louisiana must be examined how often?

Every 5 years or as the commissioner feels is necessary.

In life insurance policies, cash value increases

Grow tax deferred.

An insured has a Modified Endowment Contract. He wants to withdraw some money in order to pay medical bills. Which of the following is true?

He will have to pay a penalty if he is younger than 59 1/2

Which of the following is NOT true regarding policy loans?

Money borrowed from the cash value is taxable.

Which type of retirement account does not require the owner to start taking distributions at age 72?

Roth IRA

The advantage of qualified to employers is?

Tax-deductibles contributions

Which of the following describes the tax advantage of a qualified retirement plan?

The earnings in the plan accumulate tax deferred.

A producer is charged with committing several crimes in Louisiana. Who is required to report the charges to the Commissioner?

The producer

How are contributions to a tax-sheltered annuity treated with regards to taxation?

They are not included as income for the employee, but are taxable upon distribution.

Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to

10 years

A temporary license in this state is valid for

180 days

The limit on controlled business is

25% (Must. Not exceed 25% of a producers transactions.

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

An unfair trade practice.

What is the main purpose of the Seven-pay Test?

It determines if the insurance policy is an MEC.

Which is true of a qualified plan?

It has a tax benefit for both employer and employee

If a retirement plan or annuity is "qualified", this means

It is approved by the IRS

If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?

It is only taxable if the cash value exceeds the amount paid for premiums.

Which of the following is NOT true regarding a non qualified retirement plan?

It needs IRS approval

A tax-sheltered annuity is a special tax-favored retirement plan available to

certain groups of employees only a tax sheltered annuity is a special tax favored retirement plan available only to certain groups of employees (nonprofit, education, other 501c3 organizations, including all employees in public education.)

A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. This is an example of

coercion

Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as

coercion

All of the following statements are true regarding tax-qualified annuities EXCEPT?

employer contributions are not tax deductible

What is the tax consequence of amounts received from a Traditional IRA after the money was left in the tax-deferred account by the beneficiary?

income tax on distributions and no penalty

Under a SIMPLE plan, which of the following is TRUE regarding taxation on both contributions and earnings?

they are tax deferred until withdrawn

A nonresident producer moves to another state. The producer must notify the Department Of Insurance of the address change within how many days?

30

This state provided for a temporary license for all of the following EXCEPT

A producer retirement