PRIMERICA 6

In a variable life insurance policy, all of the following assets are held in the insurance company's general account EXCEPT

cash surrender values

Where are the premiums for fixed annuities invested

general account

The guaranteed insurability rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following EXCEPT

purchase of a new home

Which of the following would be likely to establish a SEP

small employers

According to the common disaster clause , if the insured and primary beneficiary are filed in the same accident and it cannot be determined who died first, which of the following will be assumed

the primary beneficiary died before the insured

In a life insurance application, all of the following signatures would be required EXCEPT

the home office underwriters

A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy will

continue to increase

What type of an interest rate is guarantee in universal life policies

contract interest rate

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

Because of the imposed blackout period, the surviving spouse will not receive social security benefits until

he qualifies for retirement benefits

When comparing a joint life policy to two individual life policies of the same amount on the same insureds, which condition is true

joint life has a lower premium than the total of the two individual policies

An illustration used in the sale of a life insurance policy must include a label stating

life insurance illustration

Which of the following is not considered a component of an insurance policy premium

number of beneficiaries

A married couple purchase a life insurance policy on their new born baby. They are concerned about what would happen to the policy if either one of them were unable to continue making premium payments due to death or disability. Which policy rider should their agent recommend

payor benefit

What is the exclusion ratio used to determine

the annuity benefit to be excluded from taxes

What is the cost of coverage used on for group life insurance

the average age and the ratio of men to women

All of the following are true of key person insurance EXCEPT

the death benefit is taxable to the business

If any authorized entity fails to file an annual financial solvency statement, or does not reply to a written inquiry within 30 days, they are subject of a penalty of up to

$250 per day of delay not to exceed 25k

A life producer applying for a life settlement broker license may be exempt from the relicensing education and examination requirement if the producer has held an active life license for at least how many years

1 year

An IRA owner who is 57 years old wants to Make a withdrawal from her traditional IRA, what penalty will be imposed

10%

If an individual willfully violates provisions of the Fair Credit Reporting act, what is the maximum civil penalty

2,500

In credit life insurance, who is responsible for paying the policy premiums

Borrower only

Which of the following is consideration on part of an insurer

Paying a claim

all of the following are true of a non qualified deferred compensation plan EXCEPT

contributions are tax deductible

An individual has a $200,000 convertible term life insurance policy. If he chooses he can

convert to a whole life policy for the same face amount without proof of insurability

Which of the following terms refers to the nontaxable portion of each annuity benefit payment

cost base

If an agent follows the rules and terms of his agent contract, he is exercising his

express authority

A married couple wants to include the entire family in their whole life policy under one rider. Which of the following riders will help them achieve that goal

family term

If an annuity has a guaranteed minimum interest rate, this means

the interest rate will never drop below the guaranteed minimum

Robert wants to insure his 4-year-old son. Robert currently has a policy of his own for $400,000.He is getting ready to lower that amount to $100,000 next year. What is the maximum amount that he can purchase on his son

100,000

Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life. Which settlement option should this policy owner select

Joint and Survivor

The needs approach to calculating the amount of life insurance needed is based on

Predicted needs of the family after the premature death of the insured

All of the following are true of Annually renewable term insurance EXCEPT

Proof of insurability must be provided at each renewal

All of the following are true of credit life EXCEPT

The insured names the beneficiary

An insured is on life support because he has sustained severe , permanent brain damage. His neurologist recommends ending life support.The insured has a life insurance policy through his employer, who would like to issue an accelerated death benefit. Which of the following needs to happen in order for the accelerated death benefit to be paid

The insured would need to issue approval; otherwise it is not possible

According to the life insurance replacement regulations, which of the following would be an example of policy replacement

a policy is reissued with a reduction in cash value

In which of the following scenarios would a producer be allowed to obtain insurance through an unauthorized insurer

if there are no authorized insurers

Who would be allowed catch-up contributions

individuals age 50 or older

What does the application of contract of adhesion mean

insured does not participate so any ambiguities are resolved in favor of the insured

All of the following statements are true regarding an ordinary (straight) life policy EXCEPT

it does not have a guaranteed death benefit

Which of the following is NOT true of an agents implied authority

it is stated in the contract

Which of the following is true regarding pure life annuity settlement option

it provides the highest monthly benefit

which of the following documents used in the underwriting process contains specific medical details about an applicant

attending physicians statement