Wrong Q's simulated whole exam

After a back injury, an insured is disabled for a year. His insurance policy carries a Disability Income Benefit rider. Which of the following benefits will he receive?a)Payments for lifeb)Yearly premium waiver and incomec)Monthly premium waiver and monthly incomed)Percentage of medical costs paid by the insurer

.Monthly premium waiver and monthly income

An insurer terminates an agent's appointment. Within how many days of termination must the intermediary be notified?a)30b)10c)15d)20

15

Life settlements sold in Wisconsin must allow for the rescission of the contract withina)10 days.b)15 days.c)20 days.d)30 days.

30 days.

When replacing a policy, an insurer must maintain a file containing copies of all statements fora)10 years.b)As long as the insurer remains in business.c)3 years.d)5 years.

5 years.

What is the penalty for IRA distributions that are below the required minimum for the year?a)10%b)25%c)50%d)60%

50%

The two types of assignments area)Absolute and collateral.b)Absolute and partial.c)Complete and partial.d)Complete and proportionate.

Absolute and collateral.

Employer contributions made to a qualified plana)Are taxed annually as salary.b)Are subject to vesting requirements.c)May discriminate in favor of highly paid employees.d)Are after-tax contributions.

Are subject to vesting requirements.

Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium?a)Automatic premium loanb)Extended termc)Reinstatementd)Reduced paid-up option

Automatic premium loan

All of the following are requirements of eligibility for Social Security disability income benefits EXCEPTa)Fully insured status.b)Waiting period of 5 months.c)Being age 65.d)Inability to perform any gainful work.

Being age 65.

Which of the following would be considered a violation of Life Insurance Advertising regulations?a)Calling an insurance policy an investment planb)Not guaranteeing dividendsc)Making oral sales presentationsd)Informing the applicant the sole subject of the sale is insurance

Calling an insurance policy an investment plan

Which nonforfeiture option has the highest amount of insurance protection?a)Decreasing Termb)Reduced Paid-upc)Extended Termd)Conversion

Extended Term

All of the following violations may result in an agent's imprisonment EXCEPTa)Knowingly obtaining information about a consumer under false pretenses.b)Engaging in the business of insurance after being convicted of breach of trust.c)Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction.d)Embezzling funds from the insurer.

Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction.

Which of the following is a feature of a single premium immediate annuity?a)It is purchased through periodic payments.b)Income payments start at age 65.c)It is also referred to as a deferred annuity.d)Income payments start within one year.

Income payments start within one year

The type of term insurance that provides increasing death benefits as the insured ages is calleda)Interest-sensitive term.b)Age-sensitive term.c)Increasing term.d)Flexible term.

Increasing term.

What are the two components of a universal policy?a)Separate account and policy loansb)Insurance and cash accountc)Insurance and investmentsd)Mortality cost and interest

Insurance and cash account

Which statement regarding insurable risks is NOT correct?a)An insurable risk must involve a loss that is definite as to cause, time, place and amount.b)Insureds cannot be randomly selected.c)Insurance cannot be mandatory.d)The insurable risk needs to be statistically predictable.

Insureds cannot be randomly selected.

What is the purpose of a conditional receipt?a)It serves as proof that the applicant has been determined insurable.b)It is given only to applicants who fully prepay the premium.c)It is intended to provide coverage on a date prior to the policy issue.d)It guarantees that a policy will be issued in the amount applied for.

It is intended to provide coverage on a date prior to the policy issue.

If a life insurance policy increases significantly in face amount (death benefit) when the insured reaches a specified age, what type of policy is this?a)Single premium policyb)Jumping juvenile policyc)Limited pay whole life policyd)Modified life insurance policy

Jumping juvenile policy

Death benefits payable to a beneficiary under a life insurance policy are generallya)Exempt from income taxation if over $10,000.b)Not subject to income taxation by the Federal Government.c)Subject to income taxation by the Federal Government.d)Exempt from income taxation if under $10,000.

Not subject to income taxation by the Federal Government.stment.

Which of the following is TRUE regarding variable annuities?a)The company guarantees a minimum interest rate.b)A person selling variable annuities is required to have only a life agent's license.c)The annuitant assumes the risks on investment.d)The funds are invested in the company's general account.

The annuitant assumes the risks on investment.

A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, thena)The benefit is subject to the exclusionary rule.b)IRS has no jurisdiction.c)The benefit is received as taxable income.d)The benefit is received tax free.

The benefit is received tax free.

Which of the following statements about group life is correct?a)The cost of coverage is based on the ratio of men and women in the group.b)The premiums are higher than in an individual policy because there is no medical exam.c)The group sponsor receives a Certificate of Insurance.d)The policy can be converted to an individual term insurance policy.

The cost of coverage is based on the ratio of men and women in the group.

An Adjustable Life policyowner can change which of the following policy features?a)The coverage periodb)The mortality expensec)The investment accountd)The insured

The coverage period

A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?a)The premiums will become tax deductible until the insured's 18th birthday.b)Since it is the policyowner, and not the insured, who has become disabled, the life insurance policy will not be affected.c)The insured will have to pay premiums for 6 months. If at the end of this period the father is still disabled, the insured will be refunded the premiums.d)The insured's premiums will be waived until she is 21.

The insured's premiums will be waived until she is 21.

In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPTa)The length of coverage.b)The premium.c)The amount of insurance.d)The type of investment.

The type of investment

Which of the following is TRUE about nonforfeiture values?a)They are required by state law to be included in the policy.b)They are optional provisions.c)A table showing nonforfeiture values for the next 10 years must be included in the policy.d)Policyowners do not have the authority to decide how to exercise nonforfeiture values.

They are required by state law to be included in the policy.