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Joint Life

A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy?

Survivor Protection

A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as

Guaranteed surrender value

According to the nonforfeiture law, if the owner decides to surrender a deferred annuity prior to annuitization, the owner is entitled to which of the following?

The payments will stop when the annuitant dies

All fo the following statements are true regarding installments for a fixed amount EXCEPT

The insured may choose to convert to term or permanent individual coverage.

An employee is insured under her employers group life plan. If she terminates her group coverage, which of the following statement's is INCORRECT?

False Advertising

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?

Cash option

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

Increases annually

Annually Renewable Term policies provide a level death benefit for a premium that?...

Credit Life

Decreasing term

Taxable interest will be withdrawn first and the 10% penalty will be imposed if under age 59.5

During the accumulation period in a non qualified annuity, what are the tax consequences of a withdrawal?

Taxable interest will be withdraw first and the 10% penalty will be imposed if under the age 59.5

During the accumulation period in a nonqualified annuity, what are the tax consequences of a withdraw?

3 years

How often must the superintendent examine financial affairs of domestic insurers?

With the policy

If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant...

Name, age. and sex of the insurance producer

In Ohio, all life insurance policy illustrations must include all of the following except

Statement of Policy Cost and Benefit Information

In Ohio, the written statement that describes all relevant elements of the policy must be titled

Cash Values

Increase tax deferred

Return of premium rider

Increasing term

Generally not taxed as income

Life insurance death proceeds are..

"Not taxable" since the IRS treats them as a return of a portion of the premium paid.

On a participating insurance policy issued by a mutual insurance company, dividends paid to the policyholders are

Mutual

Owned by policy holders and pay dividends to policy holders

Distributions

Tax Free

Accelerated Benefits

Tax free

lump sum cash surrenders

Taxable

Express authority

The authority granted to an agent by means of the agent's written contract.

the amount to be repaid under the contract

The initial amount of credit life insurance may NOT exceed

Reduction of Premium

The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?

5 days

To avoid violating the state Insurance Code regarding unfair claims settlement practices, insurers must pay a claim within how many days of the final agreement to the settlement?

Cash surrender

Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner?

Waiver of Cost

Universal Life

The owner will receive the surrender value of the annuity

What happens if a deferred annuity is surrendered before the annuitization period?

The rider is usually level term insurance

Which is true about a spouse term rider?

Universal Life

Which of the following Life Insurance policies would be considered interest sensitive?

Payor Benefit

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Superintendent

Which of the following authorities is responsible for assessing the financial ability of insurers

It is level term insurance

Which of the following best describes annually renewable term insurance?

The period of time during which accumulated money is converted into income payments

Which of the following best describes what the annuity period is?

Depreciation Period

Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income?

The have a guaranteed minimum interest rate

Which of the following is TRUE for both equity indexed annuities and fixed annuities?

dividends are not taxable

Which of the following is true regarding taxation of dividends in participating policies?

It can protect the policy proceeds from creditors of the beneficiary

Which of the following is true regarding the spendthrift clause in life insurance policies?

AM Best

Which of the following produces evaluations of insurers' financial status often used by state departments of insurance?

Withdrawals are not taxable

Which of the following statements regarding the the taxation of Modified Endowment Contracts is FALSE?

Target Premium

Which of the following would help prevent a universal life policy from lapsing?

Replacement Rule

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

Extended term

highest insurance protection

pure life

highest monthly benefit

Straight Life

lowest annual premium of 3 types of whole life

Universal Life

offers surrenders and partial surrenders

Cash Value Gains

taxed at surrender

Without receiving written consent from an insurance regulatory authority

Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce.

Reduced Paid-Up Insurance

Provides the longest protection

Death proceeds

Receive the federal estate tax


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