Life Insurance ESSENTIALS
All of the following are TRUE of the federal tax advantages of a qualified plan EXCEPT
At distribution, all amounts received by the employee are free of taxes.
Upon the submission of a death claim under a life insurance policy, when must the insurer pay the policy benefit?
Within 2 months
The primary beneficiary of her husband's life policy found that no settlement option was stated in the policy on the date of her husband's death. Who will select the settlement option in this case?
beneficiary
Who bears all of the investment risk in a fixed annuity?
insurance company
The policyowner 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 policyowner choose?
Interest only option
An insurer must acknowledge receipt of a Notice of Claim within how many days?
15
In insurance, an offer is usually made when
An applicant submits an application to the insurer.
All of the following are requirements of eligibility for Social Security disability income benefits EXCEPT
Being age 65
All of the following employees may use a 403(b) plan for their retirement EXCEPT
CEO of private corporation.
Which of the following is NOT true regarding a Certificate of Authority?
It is issued to group insurance participants.
Which of the following information about the applicant is NOT included in the General Information section of the application for insurance?
Medical background
Which of the following statements concerning a Simplified Employee Pension plan (SEP) is INCORRECT?
SEPs are suitable for large companies
Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?
Universal Life - Option A
In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?
unilateral