test febr
Which of the following interest rates credited to an annuity will provide the larger monthly income benefit payment amount all other factors remaining the same?
. A Third-Party Ownership
Jeanne has a $100,000 whole life insurance policy that has $1,000 of dividend additions, a $6,000 outstanding loan that includes unpaid interest, and a monthly premium of $500. If she dies during the grace period, which of the following insurance settlements would be permitted?
100.000+1000-6500=94500
A new agent must complete ______ hours of continuing education every ______ year(s).
24 horas cada 2 anos
A married couple purchases a $250,000 Joint Life Policy. When the older of the two dies, what is the amount payable to the survivor? A $250,000
250.000 A Joint Life Policy insures two lives.
The Florida Insurance Guaranty Association will assume the contractual obligations of an insolvent insurer up to _________ for any one policy.
300.000
If a group life policy terminates the insurance for a class of insured persons, how long must a person have been insured with the group policy in order to qualify for conversion to an individual policy?
5 anos
Which of the following will receive the smallest monthly income benefit check if an annuity is annuitized?
50 years female
A non-school employer can set up a TSA plan for their employees under which of the following IRC section?
501
The insured is 67 years old and forgot to pay his/her life insurance premium. What is the grace period?
51 dias
Which of the following interest rates credited to an annuity will provide the larger monthly income benefit payment amount all other factors remaining the same?
6%
A small business owner used her life insurance policy as collateral for a bank loan. The face amount of the whole life policy was $100,000 and the original amount of the loan was $20,000. If the outstanding loan balance at the time the small business owner died was $10,000, how much will the policy's named beneficiary receive? A
90.000
All of the following are correct regarding Key Employee Life Insurance, except
A Premiums are deducted from the employee's salary
A life insurance applicant wants a combination of savings and insurance protection with guarantees. If the applicant is willing to pay premiums only until the age of 65, at which time the policy is fully paid-up, which of the following should he/she purchase?
A life policy payable to age 65 is a limited payment policy. If the insured does not die within the limited premium period, premiums cease because the policy is fully paid up (i.e. no more premiums are due). Death always results in the payment of the policy proceeds as long as the policy is in force. Cash values build as in any other Ordinary Whole Life policy. Limited Pay Whole Life-Age to age 65
Policy __________ are the net premiums paid plus interest earned and reflect potential insurance contract obligations.
A reserve is maintained by an insurer in order to meet future potential obligations and is also required by State insurance laws rerserves
A stay at home father wants to open up an IRA. What is required in order for him to do so? A Be married to a spouse that has earned income
A spousal IRA can be set up for a non-working spouse based on the working spouse's earned income
When the death of an insured occurs within a specified period, causing the policy to pay double or triple benefits, this policy must have which of the following riders?
Also known as the Double Indemnity Rider, the policy pays the stated multiple of the face amount should the insured die as the result of an accident. Accidental Death Ride
Which of the following is true about an insurance agency?
An agency must have a licensed and appointed full-time agent in charge
Which of the following concerning Noncontributory Group Life insurance is FALSE?
An employer pays 75% of the premium
Capital liquidation assumes:
Capital liquidation assumes both principal (capital) and interest are liquidated over the relevant time period to provide the required income for the dependents. This will cause the balance to decrease and benefits are paid. he balance of the account will reduce over a period of time once payout beginst
The administration of state insurance law is the responsibility of which of the following?
Chief Financial Officer
Which of the following qualified plans puts the investment risk entirely on the employer sponsoring the plan?
Defined Benefit
Concerning the Paid-Up Additions Dividend Option, all of the following are true, except:
Eventually, no more premiums will be due on the policy
Before the replacement of an annuity contract, the agent must provide information to the consumer. Which of the following is not required?
Explanation that the purchase or exchange does not have tax consequences
What is the primary reason why States have 'outlawed' Stranger Originated Life Insurance (STOLI) transactions?
If a policy is issued without proper insurable interest it becomes a wager contract which is prohibited by State insurance law. At policy inception there is a lack of insurable interest
Ultimately, who will be responsible for proving that a policy was delivered, if not accomplished through reasonable means?
If an insurer does not deliver the policy by reasonable means, the burden of proof will be on the insurer to establish that the policy was delivered. the insurer
With a Current Assumption Whole life policy, what can happen if the cash values increase too quickly?
If the cash values grow too quickly then the policy may have its cash values equal the policy's face amount prior to age 100 or 121 thereby causing the policy to mature (or endow). he policy could mature sooner than expected
Which of the persons or entities listed below would have an insurable interest in an unrelated individual?
Insurable interest exists when there is a reasonable expectation that the beneficiary will benefit from the continued life of the insured, or experience a loss at the death of the insured. An employer on a Key Employee
A personal lines agent may not sell which type of insurance?
Limited credit insurance
What happens to the overall policy premium when most riders on a life insurance policy expire?
Most life insurance policy riders have a premium associated with it. Once the rider expires so too does the obligation to continue paying its premium. it going down
Which of the following is not a qualification to apply for an insurance license in Florida?
Must have a high school diploma or GED
The purpose of the Re-Entry Term option is to: A
Obtain a new term policy at a lower rate
An insured forgets to pay his insurance premium. Instead of the policy lapsing, the premium is paid by the company. This would suggest that a __________ policy was purchased.
Only cash value policies can provide for missed premium payments to be paid with the policy's cash value through an automatic premium loan. whole life
Which of the following best describes 'Capital Liquidation' in an effort to meet an income objective?
Principal and earnings are paid out
When must an insurer provide the life insurance Buyer's Guide and Policy Summary to every applicant?
Prior to accepting the initial premium
How can an annuity payout an income benefit income tax free?
Purchase the annuity within a Roth IRA account
A producer submits a completed application to the insurer along with the premium check after giving the applicant a conditional receipt. If the applicant completes the required medical exam, but dies prior to the insurer declining the application based upon the results of the medical exam, what is the insurer's responsibility?
Since the producer issued a conditional receipt and all of the conditions were not satisfied (issuance of a policy as applied for) then the insurer must refund all premiums paid. Refund any and all premiums paid with the application
Concerning eligibility for a 403(b) retirement plan, which of the following would not qualify?
Student athlete receiving a scholarship and a stipend no estudiantes
_____________ insurance allows for insurance coverage to be obtained when not available from admitted carriers.
Surplus lines insurance can be obtained through surplus lines brokers (producers) from non-admitted insurers. Surplus lines
An insured has paid $1,000 in annual premiums for her permanent life insurance policy for 12 years. Now upon surrendering the policy she is due to receive $15,000 of cash value. How much of this cash value is taxable?
The Cost Recovery Rule states that at surrender, cash values will be recovered tax-free to the extent of the cost basis of the policy. The cost basis is $12,000 (i.e. 12 years x $1,000 annual premium). The $3,000 excess over cost basis ($15,000 of CSV less $12,000 cost basis) is taxed as ordinary income. 3.000
In the event that an insured receives a periodic benefit as the result of exercising the Accelerated Death Benefit Rider, what information must the insurer provide to the insured?
The amount of the accelerated payment, the remaining death benefit and cash values
The name used to indicate the insured's age at time of policy renewal is the ________ age. A Legal
The insured's age at time of policy renewal is referred to as the insured's attained age. attained
All of the following are situations in which the insurer is obligated to pay out a death benefit after the insured has died, except:
The insuring clause states that the policy must be in force. A policy that has overdue premiums unpaid will cause the policy to lapse which means no coverage was in effect. The premiums have not been paid and have been overdue for 3 years
The relationship of a person who acts on behalf of a company whereby the person's actions can bind the company is known as:
The law of agency states the principal is responsible for acts of their agents. The law of agency
With a Current Assumption Whole life policy, what can happen if the cash values increase too quickly?
The policy could mature sooner than expected If the cash values grow too quickly then the policy may have its cash values equal the policy's face amount prior to age 100 or 121 thereby causing the policy to mature (or endow).
When a producer receives an application for life insurance that is completed and signed, but without premium payment, when does coverage start?
The policy will go into effect upon delivery and collection of the premium. No contract is effective until both parties have provided the required consideration. On the date the policy is delivered and premium collected
Proceeds from a buy-sell agreement are received _
The premiums payable for a buy-sell agreement are not tax deductible, therefore the benefit is received income tax free. income tax free
Charging different rates or providing different benefits to insureds of the same actuarial class or hazard category is which of the following?
Unfair discrimination
During the accumulation phase of a(n) ____________ annuity, premium dollars buy more accumulation units.
Variable Annuities are valued in terms of units, rather than dollars variables
All of the following are life insurance policy prohibited provisions, except:
Voiding a policy for failing to repay any policy loan or loan interest when the total outstanding policy debt is greater than the policy's cash value
Unless an exception applies, life insurance proceeds are income taxable in which of the following circumstances?
When a transfer of ownership takes place while the insured was alive
Which of the following forms does not require approval from the Office of Insurance Regulation?
agent report
All insurance carriers authorized in Florida must be audited by the Office of Financial Regulation once every __
cada 3 anos
When there is enough cash value within a life policy to pay the premium, the Automatic Premium Loan provision prevents the policy from:
lapsing
Instead of waiting to receive her payments over time Jeanne decides to obtain the greatest amount of money out of her annuity immediately. Which option did she choose?
lump sum
Which of the following is the most expensive premium mode overall?
monthy
Which of the following scenarios will trigger an income tax due?
nterest earned on dividends left on deposit with the insurer
Whole Life is also known as ________ protection.
permanent
Unlicensed entities is a regulatory concern due to which of the following issues? A Potential for criminal activity
potencial criminal activity
With a life insurance policy, in the event of the premature death of the insured, who has first claim to the policy benefits? A With a life insurance policy, in the event of the premature death of the insured, who has first claim to the policy benefits? A Primary beneficiary
primary beneficiary
ERISA sets minimum standards for pension plans primarily in the ______ industry.
private
_________ Options allow for the distribution of the life insurance death benefit, or endowment contract face amount at maturity, to the named beneficiary or contract owner, as the situation warrants.
settlement acuerdo
Which of the following annuities requires the producer to hold a securities registration (license) in order to sell it? A Fixed
variable
In a viatical settlement transaction, the life insurance policyowner is referred to as the
viator
