Premiums and proceeds
which of these factors does not affect life insurance premium rates
producer certification
which of these occurrences could imporve an insureres ability to reduce premiums
rate of earnings of investment increase
Which tax cost is normally associated with death?
Federal estate tax
How long do most states allow an insurance company to delay the payment of a cash surrender under the Delayed Payment provision?
6 months
Switching Life insurance policies without tax consequence is permitted under
section 1035 rules
Which life insurance settlement option pays a stated monthly benefit until both principal and interest are exhausted
Fixed amount installment option
which of these is an accurate statement refunding the fixed period settlement option on a life insurance policy
a portion of payments paid to the beneficiary come from interest calculated on proceeds of the policy
Kevin has an existing life insurance policy and assigns it to another insurer for a new contract. How would this transaction be treated for tax purposes?
a section 1035 exchange
the highest mortality rate belongs to
age 70 males
which would be described as a beneficiary designated by class
children of the insured
Al surrenders his life insurance policy for its cash value. The total of the premiums paid into the policy minus total dividends received in cash or used to offset premiums is referred to as the
cost basis
what affect does interest income have upon insurance premiums
decreases premiums
Death benefits from a life insurance policy are normally considered to be
exempt from federal income tax
a policy owner fell behind on the premium payments of a whole life policy and is now in the grace period
face amount minus the loan balance and past due premium
Which tax is normally associated with an individual's death? Excise tax Consumption tax Federal estate tax Ad valorem tax
federal tax
which settlement option makes minimum guaranteed dollar payments over a stated number of years
fixed-period
Death proceeds from a life insurance policy are typically included in a deceased insured's gross estate
for federal income tax reasons
Where will a life insurance policy's proceeds be directed to if all the beneficiaries die before the insured?
insured estate
When premiums are determined, one factor would be the expenses of the
insurer
which statement is incorrect about the interest only settlement option in a life insurance policy
interest on proceeds must be paid by the beneficiary
When a policy loan is requested by a policyowner and it requires the consent of the beneficiary, what kind of beneficiary designation is this?
irrevocable beneficiary
which life insurance settlement option for two or more people
joint and survivor
a life insurance beneficiary died after only six payments under a life income settlement option. what happens with the remaining balance
kept by the insurance company
How much is normally paid to a policyowner in a life (viatical) settlement?
less than the death benefit
during the early years of a whole life insurance policy the cash value will normally be
less than the normal premium paid
A life policy spendthrift clause would have no effect if the proceeds as a
lump-sum payment
what would a valid reason be for naming a trust as the beneficiary of a life insurance policy as opposed to naming an individual
management of proceeds would be provided
what is considered a valid reason for an insurer refusal to pay policy proceeds
minors are normally not capable of handling money in a responsible manor
life insurance premiums are computed on what three factors
mortality, interest, expenses
Wyatt is shopping for life insurance and is mainly concerned with the policy's death benefit. Which index should he be looking at when making comparisons?
net payment cost index
which statement best describes a single premium whole life policy
paid up policy that offers a lifetime of protection
the beneficiary of a life insurance policy is normally selected by whom
policy owner
What kind of arrangement gives the policyowner the right to change the beneficiary? Contestable designation Incontestable designation Irrevocable designation Revocable designation
revokable designation
which life insurance policy provision prohibits beneficiary from commuting, encumbering, withdrawing or assigning any portion of the proceeds prior to actual receipt from the company
spend thrift clause
which statement regarding the joint and survivor life insurance settlement is no true
the amount of each installment is larger than the single life income option
which of the following statements about the installment for a fixed period settlement option in a life insurance policy is not true
the periodic payment amount is determined by the beneficiaries age
a life insurance policy contingent beneficiary is the
the person who receives the benefits if the primary benefiiary dies before insured
what would be a disadvantage of naming a trust as a beneficiary of a life insurance policy
trust administration fees would reduce policy proceeds
a terminally ill policy owner decides to sell his life insurance policy at a discount to help support his family
vatical settlement
who is the beneficiary in a life insurance policy
The stated person or entity who is designated to receive the death proceeds
when there is a named beneficiary on a life insurance policy, the death benefits
are paid directly to the beneficiary without inference from the insured creditors
a life insurance company just paid 100,000
nothing
T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?
request of the change will be refused
which statement regarding a fixed peroid settlement option is correct
the installment payment option is determined by total number of installments
a policy owner with a terminal illness who sells his life insurance policy to a third party is called a
viator