Life insurance study exam part.3

Pete purchases a 50,000 whole life policy in 2005 what are the questions on the application ask if he engages in scuba diving to which P answers no the policy is an issue with no scuba exclusions in 2010 people takes up scuba diving and dies scuba related accident on 2011.what will the insurer paid two P's beneficiary?

$50,000 minus any outstanding policy loans

The type of annuity that can be purchased with one monetary deposit is called a

Immediate annuity

When an employee is terminated, which statement about a group term life conversion is true?

Policy proceeds will be paid if the employee dies during the conversion period

A life insurance policy owner would like to take out A policy loan against the cash value in his whole life policy.the interest rate applied to this lonely very overtime. this is referred to as a _______ rate loan

Variable

In a qualified retirement plan, the yearly contributions to an employee's account

are restricted to maximum levels set by the IRS

K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable?

level

A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid

mandatory income tax withholding on the amount transferred

Which of these is not an element of life insurance premiums?

morbidity rate

When is the face amount paid under a Joint Life and Survivor policy?

upon death of the last insured

What does a 401(k) plan generally provide its participants?

Salary-deferral contributions

P is a producer who notices 5 questions on a life application were not answered. What actions should P take?

Set up a meeting with the applicant to answer the remaining questions