Stimulus Exam
All of the following are dividend options except
Fixed period installments
If an agent changes his residence address, within how many days must the agent notify the Commissioner of the change?
30 days
All of the following are requirements for eligibility for Social security disability income benefits except
Being age 65
All of the following are nonforfeiture options except
Interest only
The policy owner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policy owner choose?
Interest only option
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
Purchase a single premium policy for a reduced amount
All of the following benefits are available under Social Security benefits EXCEPT
Welfare benefits
Which of the following features of the Indexed Whole Life policy is NOT fixed?
Cash value growth
Which is true about the cash surrender nonforfeiture option?
Funds exceeding the premiums paid are taxable as ordinary income
What is the other term for the cash payment settlement option?
Lump sum
The paid up addition option uses the divider
To purchase a smaller amount of the same type of insurance as the original policy
Insurers must keep files of all advertisements used in Georgia for the minimum of how many years?
4
Which of the following are a feature of variable annuity?
Benefit payment amounts are not guaranteed
Which of the following best describes fixed period settlement option?
Both principal and interest will be liquidated over a specific period of time
All of the following are business uses of life insurance EXCEPT
Funding against company general financial loss
What does "level" refer to in level term insurance?
Face amount
Which policy component decreases in decreasing term insurance?
Face amount
Variable whole life insurance is based on what time of premium?
Level fixed
Which of the following is NOT one of the three types of coverage based on what happens to the face amount during the policy term?
Renewable
All of the following are true about variable products except
The premiums are invested in the insurer's general account
The responsibility of making certain that an application for insurance is filled out completely and correctly, and to the best of his or her knowledge is the responsibility of whom?
The producer
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
Purchase a single premium policy for a reduced face amount
Which nonforfeiture option provides coverage for the longest period of time?
Reduced paid up
Who bears all of the investment risk in a fixed annuity? A) The insurance company B) The owner C) The beneficiary D) The annuitant
A) The insurance company
All of the following statements are true EXCEPT:
Dividend amounts are guaranteed in the policy
In insurance transactions, fiduciary responsibility means
Handling insurer funds in a trust capacity
All of the following are true of federal tax advantages of a qualified plan except
At distribution, all amounts received by the employee are tax free
Which of the following best describes fixed-period settlement option?
Both the principal and interest will be liquidated over a selected period of time
What type of premium do both Universal Life and Variable Universal Life policies have?
Flexible
Which of the following is a key distinction between variable whole and variable universal life products?
Variable whole life has a guaranteed death benefit
On a participating insurance policy issued by a mutual insurance company, dividends paid to policy holders are
Not taxable, since the IRS treats them as a return of the a portion of the premium paid
Under an extended term nonforfeiture option, the policy cash value is converted to
The same face amount as in the whole life policy
Which of the following is not true regarding Equity Indexed Annuities?
There earn lower interest rates than fixed annuities