X CEL missing questions
Which statement is true regarding minor beneficiary?
Normally the guardian is required to be appointed in the beneficiary clause of the contract
If a corporation pays the premium on a group life policy for its employees, the corporation is required to report how much additional taxable income for each employee?
Nothing
P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability?
P will still receive declared dividends
Which statements is true regarding a policy loan?
Past due interests on a policy loan is added to the total debt
M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take?
Pay face amount minus the past minimum due
The underwriting process involves all of these EXCEPT for
Policy loan
Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group Term Life plan to all its eligible employees?
Portion of the premiums paid by the employer may be a tax deduction
K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true?
Proceeds will be payable to K's estate if P dies within specified time
A primary beneficiary has died before the insured in a life insurance policy. A contingent beneficiary is also named in the policy. Which of the following will occur when the insured dies?
Proceeds will go the contingent beneficiary
A whole life insurance policyowner does not wish to continue making premium payments. Which of the following enables the policyowner to sell the policy for more than its cash value
life settlement contract
Whole Life insurance policies are contractually guaranteed to provide each of the following EXCEPT
partial withdrawal features beyond a surrender charge period
Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determine
probability of making timely premium payments
An immediate annuity consists of a
single premium.
In Tennessee, the definition of "individual" may include which of the following?
the individual's legal representative
The advantage of reinstating an original life policy
the premiums are based on a younger age
A term life insurance policy matures
upon the insured's death during the term of the policy
If a 10-Year Term Life policy contains a Renewability provision, the policy will renew
without evidence of the insurability
Which provision is NOT a requirement in a group life policy?
Accidental
What action can a policyowner take if an application for a bank loan requires collateral?
Assign policy ownership to the bank
A policy loan is made by possible which of these life insurance policy features
Cash value provision
Unfair discriminations is BEST described as
Charging a different rate for someone in the same actuarial series
Credit life insurance is typically issued with which of the following types of coverage?
Decreasing term
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
which of these statements is incorrect regarding the federal income tax treatment of life insurance?
Entire cash surrender value is taxable
What action should a producer take if the initial premium is NOT submitted with the application?
Forward the application to the insurer without the initial premium
An interest is past due on his life insurance premium, but is still within the grace period. What will the beneficiary receive if the insured dies during the grace period?
Full face amount minus past due premiums
W is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices EXCEPT a(n)
Immediate annuity
All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death EXCEPT
Interest only
A policyowner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need?
Irrevocable
K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable?
Level
Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The widow qualifies for the
Marital deduction
What advantage does the renewability feature give to a term policy?
The insured may extend the coverage period
An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?
When the conditions of the receipt are met
A Term Life rider offers the insured
additional life coverage
Which of the following statements is correct regarding the tax treatment of lump sum payment paid to life insurance policy's primary beneficiary
all proceeds are income tax free in the year they are received
insurance contracts may be sold, solicited, or negotiated by an insurance producer ONLY upon
becoming an appointed producer of an insurer
