PRIMERICA 4
An insured decides to surrender his $100,000 Whole Life policy. The premiums paid into the policy added up to $15,000. At policy surrender, the cash surrender value was $18,000. What part of the surrender value would be income taxable?
3,000
If $100,000 of life insurance proceeds were used in a settlement option, which paid $13,000 per year for ten years, which of the following would be taxable annually?
3,000
An employee quits her job where she has a balance of $10,000 in her qualified plan. The balance was paid out directly to the employee in order for her to move the funds to a new account. If she decides to rollover her plan to a Traditional IRA, how much will she receive from the plan administrator and how long does she have to complete the tax-free rollover?
8,000 60 days
Which of the following is NOT allowed in credit life insurance
Creditor requiring that a debtor buys insurance from a certain insurer
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
Purchase a single premium policy for a reduced face amount
Equity indexed annuities
Seek higher returns
In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?
The customers friends and neighbors provide the reports data
How are contributions to a tax-sheltered annuity treated with regards to taxation?
They are not included as income for the employee, but are taxable upon distribution.
What is the purpose of a suicide provision within a life insurance policy
To protect the insurer from people with the intention of committing suicide
An independent adjuster may include which of the following
a firm who acts on behalf of the insurer
Employer contributions made to a qualified plan
are subject to vesting requirements
When must agents submit license renewal applications to the Superintendent
at least 60 days before the license expires
Which of the following is INCORRECT regarding a $100,000 20-year level term policy?
at the end of 20 years the cash value will equal 100,000
Which of the following features of the Indexed Whole Life policy is NOT fixed
cash value growth
Which of the following is an approved written document that identifies procedures in place to keep the insurer's Information System safe?
cyber security policy
An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?
false advertising
An applicant wants to buy a life insurance policy in which he can count on receiving the same benefits as stated in the contract. Which type should he buy?
fixed
What required provision protects against unintentional lapse of the policy
grace period
Units with the same or similar exposure to loss are referred to as
homogeneous
Which of the following best describes annually renewable term insurance
it is level term insurance
Using a class designation for beneficiaries means
naming beneficiaries as a group
The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the
one year option
Under a pure life annuity, an income is payable by the company
only for the life of the annuitant
Part 2 of the application for life insurance provides questions regarding all of the following EXCEPT
other insurance coverages
Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value?
predicted needs of the family after the insureds death
Which two terms are associated directly with the way an annuity is funded
single payment or periodic payment
All of the following are true of key person insurance EXCEPT
the plan is funded by permanent insurance only
Under an extended term nonforfeiture option, the policy cash value is converted to
the same face amount as in the whole life policy
What is the purpose of establishing the target premium for a universal life policy?
to keep the policy in force