Stimulus Exam

All of the following are dividend options except

Fixed period installments

If an agent changes his residence address, within how many days must the agent notify the Commissioner of the change?

30 days

All of the following are requirements for eligibility for Social security disability income benefits except

Being age 65

All of the following are nonforfeiture options except

Interest only

The policy owner 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 policy owner choose?

Interest only option

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 amount

All of the following benefits are available under Social Security benefits EXCEPT

Welfare benefits

Which of the following features of the Indexed Whole Life policy is NOT fixed?

Cash value growth

Which is true about the cash surrender nonforfeiture option?

Funds exceeding the premiums paid are taxable as ordinary income

What is the other term for the cash payment settlement option?

Lump sum

The paid up addition option uses the divider

To purchase a smaller amount of the same type of insurance as the original policy

Insurers must keep files of all advertisements used in Georgia for the minimum of how many years?

4

Which of the following are a feature of variable annuity?

Benefit payment amounts are not guaranteed

Which of the following best describes fixed period settlement option?

Both principal and interest will be liquidated over a specific period of time

All of the following are business uses of life insurance EXCEPT

Funding against company general financial loss

What does "level" refer to in level term insurance?

Face amount

Which policy component decreases in decreasing term insurance?

Face amount

Variable whole life insurance is based on what time of premium?

Level fixed

Which of the following is NOT one of the three types of coverage based on what happens to the face amount during the policy term?

Renewable

All of the following are true about variable products except

The premiums are invested in the insurer's general account

The responsibility of making certain that an application for insurance is filled out completely and correctly, and to the best of his or her knowledge is the responsibility of whom?

The producer

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

Which nonforfeiture option provides coverage for the longest period of time?

Reduced paid up

Who bears all of the investment risk in a fixed annuity? A) The insurance company B) The owner C) The beneficiary D) The annuitant

A) The insurance company

All of the following statements are true EXCEPT:

Dividend amounts are guaranteed in the policy

In insurance transactions, fiduciary responsibility means

Handling insurer funds in a trust capacity

All of the following are true of federal tax advantages of a qualified plan except

At distribution, all amounts received by the employee are tax free

Which of the following best describes fixed-period settlement option?

Both the principal and interest will be liquidated over a selected period of time

What type of premium do both Universal Life and Variable Universal Life policies have?

Flexible

Which of the following is a key distinction between variable whole and variable universal life products?

Variable whole life has a guaranteed death benefit

On a participating insurance policy issued by a mutual insurance company, dividends paid to policy holders are

Not taxable, since the IRS treats them as a return of the a portion of the premium paid

Under an extended term nonforfeiture option, the policy cash value is converted to

The same face amount as in the whole life policy

Which of the following is not true regarding Equity Indexed Annuities?

There earn lower interest rates than fixed annuities