Missed

#45. An insured committed suicide 6 months after his life insurance policy was issued. The insurer will a) Refund the premiums paid. b) Pav the policv's cash value. C) Pay the full death benefit to the beneficiary. d) Pay nothing.

A

#8. The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the a) Incontestabilitv clause. b) Reinstatement clause. c) Insuring clause. d) Misstatement of Age clause.

A

3: An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of a report is that? A Inspection Report B Medical Information Bureau's report C Agent's Report D Underwriter's Report

A

5: In an individual long-term care insurance plan, the insured is able to deduct the premiums from taxes. What income taxation will be imposed on the benefits received? A No tax B Tax deductible C State income tax D Federal income tax

A

5: The Federal Fair Credit Reporting Act A Regulates consumer reports. B Protects customer privacy. C Regulates telemarketing. D Prevents money laundering.

A

8: A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true? A The amount of the distribution is reduced by the amount of a 20% withholding tax. B No taxes are due since the plan participant is over age 59 1/2. C There is a 10% early withdrawal penalty. D The amount distributed is subject to ordinary income tax.

A

#43. An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT? a) The premium for individual coverage will be based upon the insured's attained age. b) The insured may choose to convert to term or permanent individual coverage. c) The insured would not need to prove insurability for a conversion policy. d) The insured may convert coverage to an individual policy

B

2: Under which condition would an employee's group medical benefits be exempt from income taxes? A When the premiums and other unreimbursed medical expenses exceed 10% of the employee's adjusted gross income B An employee's group medical benefits are generally exempt from taxation as income. C An employee's group medical benefits are never exempt from taxation as income. D When the premiums and other unreimbursed medical expenses exceed 5% of the employee's adjusted gross income

B

9: Premium payments for personally-owned disability income policies are A Tax deductible to the extent that they exceed 10% of the adjusted gross income of those itemizing deductions. B Not tax deductible. C Eligible for tax credits. D Tax deductible.

B

#25. All of the following are personal uses of life insurance EXCEPT a) Estate creation. b) Cash accumulation. c) Buy-sell agreement. d) Survivor protection.

C

#57. The death benefit under the Universal Life Option B a) Increases for the first few years of the policy, and then levels off. b) Remains level. c) Gradually increases each year by the amount that the cash value increases. d) Decreases by the amount that the cash value increases.

C

14: Which of the following is INCORRECT concerning taxation of disability income benefits? A If the insured paid the premiums, any disability income benefits are tax-free. B If the benefits are for a permanent loss, the benefits paid to the employee are not taxable. C If paid by the individual, the premiums are tax deductible. D If the employer paid the premiums, income benefits are taxable to the insured as ordinary income.

C

3: The benefits received by the business in a Disability Buy-Sell policy are A Partially taxable. B Fully taxable. C Income tax free. D Tax deductible.

C

#19. Which of the following is NOT true regarding partial disability? a) The insured can still report to work and receive benefits b) Benefit payments are typically 50% of the total disability benefit. c) An insured would qualify if he couldn't perform some of his normal job duties. d) This is a form of insurance that covers part-time workers.

D

#63. The provision in a health insurance policy that ensures that the insurer cannot refer to any document that is not contained in the contract is the a) Time limit on certain defenses clause. b) Incontestability clause. c) Legal action against us clause. d) Entire contract clause.

D

#72. An insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation? a) They are considered after-tax contributions. b) They are not deductible. c) They are taxed as income. d) They are tax deductible.

D

#86. In the event a policy lapses due to nonpayment of premium, within how many days would the policy be automatically reinstated once the outstanding premium is paid? a) 10 days b) 25 davs c) 30 days d) 45 days

D

4: Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? A Distributions before age 59 1/2 incur a 10% penalty on policy gains. B Policy loans are taxable distributions. C Accumulations are tax deferred. D Withdrawals are not taxable.

D

8: Part 2 of the application for life insurance provides questions regarding all of the following EXCEPT A Family health history. B Alcohol and tobacco consumption. C Recent surgeries. D Other insurance coverages.

D