Questions that were wrong
The term 'fixed' in a fixed annuity refers to all of the following except a) Death benefit b) Guaranteed rate of interest c) Equal annuity payments d) Amount and length of payments
Answer: A
An individual buys a flexible premium deferred life annuity with 20 year period certain. What would his beneficiary receive if he died 5 years after beginning the annuity phase? a) Payments for 15 years b) Payments for 20 years c) Payment for life d) Nothing
Answer: A
An insured wants to transfer his personal insurance policy to a friend. Under what conditions would this be possible? a) The insured can transfer the policy to his friend and then notify the insurer of the change b) The insured will need a written consent of the insurer c) It is impossible to transfer a policy d) The insured would have to surrender his policy to the insurer, and his friend could then ask to buy it
Answer: B
Another name for a substandard risk classification is: a) Elevated b) Rated c) Controlled d) Declined
Answer: B
Attempting to determine how much insurance an individual would require based upon their financial objectives is know as: a) Viatical Approach b) Needs approach c) Human life approach d) Estate planning
Answer: B
Joe did not remember to renew his insurance license before the due date. What must he do now to reinstate the license without having to take a written exam? a) Pay 3 times the renewal fee within 24 days of the due date b) Pay double the amount of the unpaid renewal fee within 24 months of the due date c) Pay the usual renewal fee within 24 months of the due date d) Joe cannot reinstate his license now without passing a written exam
Answer: B
Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost? a) Reasonable coverage expectations b) Indemnity c) Stop-loss d) Limited benfits
Answer: B
Which of the following is NOT the purpose of HIPAA? a) To limit exclusions for preexisting conditions b) To provide immediate coverage to new employees who had been previously covered for 18 months c) To guarantee the right to buy individual policies to eligible individuals d) To prohibit discrimination against employees based on their health status
Answer: B
Which of the following is NOT true regarding the Life with Guaranteed Minimum annuity settlement option? a) Payments can be made in installments and as a single cash refund b) It provides a higher monthly payment than a pure life annuity c) It is a life contingency option d) The beneficiary receives the remainder of the principal amount upon the annuitant's death
Answer: B
The 2 types of assignments are a) Complete and partial b) Complete and proportionate c) Absolute and collateral d) Absolute and partial
Answer: C
What is a primary difference between an IRA and an SEP? a) Only $40,000 maximum per year can be contributed to an IRA b) Much more money can be contributed to an IRA c) Much more money can be contributed to an SEP d) Only $3000 maximum per year can be contributed to a SEP
Answer: C
Which of the following is true regarding health insurance? a) It provides death benefit coverage b) It only covers expenses related to health care c) It could provide payments for loss of income d) Disability coverage is excluded
Answer: C
The following are legitimate uses of insurance in a business setting EXCEPT a) compensating executive b) funding against financial loss caused by the death of a key employee c) funding business continuation agreements d) funding against general company financial loss
Answer: D
Which of the following riders would NOT cause the Death Benefit to increase? a) Accidental Death Rider b) Payor Benefit Rider c) Guaranteed Insurability Rider d) Cost of Living Rider
Answer: B
Which of the following would NOT be true regarding a $100,000 20-year level term policy? a) the policy will expire at the end of the 20 year period b) at the end of 20 years the policy's cash value will equal $100,000 c) the policy premiums will remain level for 20 years d) if the insured dies before the policy expired the beneficiary will receive $100,000
Answer: B
At times it is possible for a life insurance agent to affect a savings of premium rates by back-dating an application for life insurance. What is the maximum amount of time that an application may be back dated? a) 1 year b) Not allowed c) Varies from insurer to insurer d) 6 months
Answer: D
