Study Set 2
The combination of Whole Life and _________ Term insurance is referred to as a Family Income Policy
Decreasing
How are surrender charges deducted in a life policy with a rear-end loaded provision?
Deducted when the policy is discontinued
An employee requested that the balance of her 401(k) account be sent directly to her in one lump sum. Upon receipt of the distribution, she immediately has the funds rolled over into an IRA. What is the tax consequence of the distribution sent to this employee?
Distribution is subject to federal income tax withholding
Why would the commissioner examine the records of an insurance company?
To determine the solvency of the insurer
A Variable Annuity has which of the following characteristics?
Underlying equity investments
S, age 40, is looking to buy a Life Insurance policy that will allow for increases or decreases in coverage as his needs change. The policy best suited for S would be...
Universal Life
R becomes disabled and owns an individual Disability Income policy. When is R eligible to receive disability benefits?
Upon satisfying the elimination period requirement
A Disability Income policy that only the policy owner can terminate and which the rates will never go up is considered to be
Noncancellable
Which statement is TRUE in regards to a policy loan?
Past-due interest on a policy loan is added to the total debt
In Georgia, most life insurance policies have a contest ability period of
2 years
Q is severely disabled in an automobile accident and becomes totally disables. How many months must Q be disabled before being able to file for Social Security disability benefits?
5
Which provision is NOT a requirement in a group life policy?
Accidental
Which organization was established to provide funds to protect an insured in the event of an insurer's insolvency?
Georgia Life and Health Insurance Guaranty Association
K's whole life insurance policy lapsed two months ago due to nonpayment. She would now like to reinstate the policy. All of these statements are correct about the policy's reinstatement EXCEPT
K will forfeit the right to use the automatic loan provision upon reinstatement
Which of the following items are regulated by the Rules Governing Advertisement of Life Insurance and Annuities?
Prepared sales presentations used by insurance agents
Which of the following are Equity Indexed annuities typically invested in?
S&P 500
The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is referred to as the the:
Waiting Period
The Life and Health Insurance Guaranty Association is
funded by admitted insurance companies through assessments
With Disability Income insurance, an insurance company may limit the monthly benefit amount a prospective policy holder may obtain because of the insured's:
gross income at the time of purchase
Dividends paid from a life insurance policy are
issued by the insurer
Which type of plan normally includes hospice benefits
managed care plan
Under a Guaranteed Renewable health insurance policy, the insurer...
may cancel the policy for nonpayment only
When funds are shifted straight from one IRA to another IRA, what percentage of the tax is withheld?
none
At the age of 45, an individual withdraws $50,000 from his Qualified Profit-Sharing Plan and then deposits this amount into a person savings account. This action would result in:
penaltyIncome tax and a 10% penalty assessed upon funds withdrawn from the Qualified Plan
Cash surrendering an existing whole life policy and purchasing a new whole life policy is referred to as a(n)
replacement