CFT
Let's assume a policy has a $1,000,000 death benefit, Option A (Level). The client has a critical illness and filed a claim. The company offers the client a full Acceleration payout of $600,000. The client chooses to accelerate ALL of the offers and therefore receives a check for $600,000. After a few years, the client passes away. How much money is left for the beneficiary?
$400,000
Mother has $2M face amount, father has $500k face amount. By underwriting guideline, what is the maximum face amount the child can be applied for?
$500K
When recording a juvenile insured's height and weight, it is best to use?
A current measured height and weight
Assuming an IUL policy linked to the S&P 500 index has a Cap of 12% and a participation Rate of 140% in one of the strategies: If the S&P 500 index returns 10% in a given year, what interest rate will be credited to this strategy as a result?
12%
What is the maximum benefit amount payable under Critical illness rider?
1M
How long is the "contestability" period of life insurance policies?
2 years
When can I exercise the Guarantee Lifetime Income Rider (GLIR) on the Annuity products?
2nd Policy year
What is 5/5/30?
5 recruits and 5 submitted sales mim 15,000 points in first 30 days, each recruit and sale must be from a different household and the sales must be eventually issued, paid, and delivered to count.
What is the earliest age to activate LIBR assuming the policy is at least in-force for 10 years?
65
At what age is the Critical Injury ABR no longer available in the state of California?
65 and older
You may qualify for a Chronic illness claim when a doctor has certified, within the past 12 months, that you are unable to perform two out of six "activities of daily living" for a period of at least _______ consecutive days without assistance, or that you are cognitively impaired.
90
What is the most important factor(s) to consider when designing an IUL policy for a client?
The client's affordability, needs, goals, suitability
Parents would like to get an insurance policy for their 39 year old daughter. This is acceptable if:
The daughter is the owner and the parents are the payor
Iff a customer currently has in-force coverage with any insurance company including NLG, which of the following must be provided:
The face amount of the current coverage, the premium being paid on that policy, if the policy is being replaced or not.
Many Equity Indexed Annuities (EIA) today offer a premium bonus as an incentive. However, bonuses are not free because the bigger the bonus is?
The longer the surrender charge period and the higher the crediting strategy caps
With an IUL, the Participation Rate is?
The percentage of premium that is allocated for expenses
How is PFA different than other life insurance brokers?
The product concept, the proprietary products like "Living Life By Design", the marketing system, and the culture.
IUL policies have a feature allowing any gains to be locked-In to the Index Account at the end of each index crediting period. This is called?
The retribution feature
One of the greatest benefits of working in PFA is the CFT program. Who should assign the CFT to the trainee?
The upline QFD or the upline CFT of the trainee who should assign a CFT with the best interest of the trainee in mind
Which one is the best strategy selection for IUL?
There's no such thing as the best strategy because strategy allocation can vary based on individual's risk tolerance and goals; it's strictly based on suitability
Which of the following is TRUE regarding the Accelerated Benefit Riders?
They are currently available to be part of a conversion from a term to permanent policy
Where can you get a Risk Assessment?
After years of putting his hard-earned money into an EIA with a lifetime income rider, the accumulation value of John's EIA is $500,000 and the income value is $600,000. Assuming John wants to take out lifetime income to supplement his retirement income to supplement his retirement at age 60 years old and the income rate is 5% annually, how much can John take home annually, and for how long?
＄30,000 for life
What is a Scenario of Disaster when prospecting?
Give every little detail and talk more instead of listening more
What is the best way to leverage third party marketing materials such as the Cause or the Tax Free Retirement book?
Give it to your prospect as a gift
Which of the following is NOT a responsibility of a QFD?
Help to rest your team members website password whenever they forget them
Which of these scenarios requires a replacement form?
If a 1035 is being completed, if the replacement is being completed, if the state requires a replacement form regardless if a replacement is taking place or not.
which of the following is true regarding Enhancers on Living Life by Design policy?
Must be selected before issue but the enhancer options can be changed after issue
Which is the best way to determine someone's life insurance needs?
Needs Analysis using tools such as a Fact Finder
Successful marketing and advertising play an important role in any business. In PFA, the advertising protocol requires you to?
Never mislead, and to stay truthful and honest at all times. Have all content for recruiting & product promotion (regardless of format whether it be printed, electronic, photographic, video, or social media) to be pre-approved by PFA's Compliance.
Do both SurvivorLife Index Universal Life insureds receive ABRs when the policy is issued?
No
Do insured who "vape" qualify for non-tobacco rates?
No
On the IUL illustration, the Current Values column is?
Not guaranteed and the actual results can be better or worse
Which living benefit rider(s) is/are available on annuities subject to state approval?
Nursing Care Rider, Terminal illness rider, income doubler
After reviewing all permanent life insurance options, you concluded that the client's limited budget will not be sufficient to purchase any meaningful permanent coverages. You should recommend which of the following products?
Term
When a term policy converts into a permanent life policy with the same health rating without any medical underwriting requirements, the process is known as?
Term conversion
Which of the following life insurance policies has the lowest policy premium for a certain period of time up to 30 years?
Term life
What are the different products we can offer to clients?
Term, UL, GUL, Whole Life, IUL, and Fixed indexed Annuity
All of the following are cost rider at policy issue except:
Terminal illness
What do the Accelerated Benefits Riders (sometimes known as living benefits) in life insurance refer to specifically?
Terminal, chronic, critical injury, and critical illness riders
Let's assume a policy has a $1,000,000 death benefit, Option A (Level). The client has a critical illness and files a claim. The company offers the client a full Acceleration payout of $600,000. However, the client chooses only to accelerate HALF of the offer and therefore receives a check for $300,000. A few years later, the client passes away. How much money is left for the beneficiary?
0
Nicotime free for what period of time can be considered as non-tobacco rating?
1 year
After years of putting his hard earned money into an EIA with a lifetime income rider, the accumulation value of John's EIA is $500,000 and the income value is $600,000. Assuming John is over 60 ears old - what is the maximum lump-sum amount he can take out if he was going to surrender the policy?
1,100,000
What is the surrender schedule on Living Life by Design?
10 years
Indexed universal life (IUL) insurance is?
A type of life insurance plan that is different from whole life and term insurance
When will the new PFA associate receive the reimbursement towards their licensing/start-up costs?
After minimum 3 sales of 9,000 points are closed, issued, and delivered and the associate is licensed and appointed. Sales must stay on the books for min 12 months.
Which one of the following is necessary to disclose to the client at the time of sale?
All non-guaranteed factors, ABRs and LIBRs, Surrender charges and policy fees, Policy lapsing conditions.
Which of the following are the best practices when conducting your business?
Always be 100% honest and truthful to your clients, recruits, and insurance carriers. Always try to under-promise and over-deliver. Always sell based on suitability and affordability at all times.
When the interest credit depends only on the difference between the beginning and end index value each year, it is called?
Annual point-to-point crediting method
What is the frequency of interest crediting for each segment under an annual Point-to-Point indexed strategy of an IUL?
Annually
Who can train new recruits in PFA?
Any CFT who has recently certified or re-certified in last 12 rolling months
What are the differences between Whole Life and IUL?
B, C, & D are all the differences between Whole Life and IUL
Client wants guaranteed permanent life insurance coverage and cannot tolerate ANY risks of lapsing the coverage (regardless of how low he risk might be). You should recommend which of the following products?
Both Guaranteed UL or Whole Life would be a reasonable option
Which of the following is true about Option "A" (level) and Option "B" (increasing) of an IUL policy?
Both Options can be suitable, it really depends on the client's goals, needs, and affordability, and any other suitability factors.
Which one of the following PFA compensations offers the most income potential in the long term?
Both the override commission and deferred compensation
Which is NOT true about Variable universal Life (VUL) Insurance?
Cash values are guaranteed to grow
One of the unique features of Living Life By Design IUL is the Gap Protector Rider (GPR). Which of the following clients is the GPR most suitable for?
Client who can afford the needed face amount but wants to save on the premium over time
One of the unique features of Living Life by Design IUL is the Guaranteed Flex Rider (GFR). Of the following, who is the most suitable client for it?
Client who is 25 years of age and is concerned of the lapse of the policy due to underperforming of the indexing strategies
Where is the best place to set up the appointment for the product?
Client's house
Within the Flexible Accumulated Value Enhancement bonus option are 3 choices and they are: Enhancer, Enhancer Plus and Enhancer max. Which of the following is NOT a reasonable design pair?
Clients does not want to pay any fees for higher gains: Enhancer Max
What are the requirements to become a Licensed Field Trained Recruit (LFTR)?
Complete 3 training sales of minimum 9,000 points
After becoming a LFTR, what are the 3 additional requirements to become a certified Field Trainer (CFT)?
Complete 6 supervised sales (each must be from different households) of minimum 18,000 points, complete the CFT certification course, pass this CFT exam, know how to conduct FOS and sales presentations, and get signed off on by your up-line QFD
Which of the following crediting strategies does not have a cap?
Credit Suisse Balanced Trend Index
Which rider isn't available in the State of California without Health insurance:
Critical Injury
Which of the following would not be considered an Uninsurable or Problematic Risk:
Currently pregnant with no current or past complications
What is the main feature(s) of the Equity Indexed concept?
Downside protection, upside growth potential
Which is the most important step in setting up appointments for the opportunity or product?
Edify your CFT to your client or prosect
A customer qualifies for EZ underwriting based on age, face and product. If you think the customer might need to have an exam and/or labs, it is ok to order them.
False
If the customer's health history has changed between the time the application was taken and the time the policy was issued, it is ok to deliver the policy?
False
Proposed insureds who are receiving Social Security Disability (SSDI) as the only source of income are not eligible for an NLG policy?
False
John joins PFA and start to solicit other PFA associates to join another network marketing company to sell vitamin pills. What john did is acceptable & compliant according to PFA's compliance guidelines. True or False?
False. This is considered cross-recruiting & is a conflict of interest which is prohibited by PFA
For face amounts over $1M, which bonus options available for Living Life By Design policy?
Flexible accumulated value enhancement including Enhancer, Enhance plus, and Enhancer Max
Which of the following is a key characteristic of a Universal Life (VUL) policy?
Flexible premium, Apermanent life insurance policy (if funded properly)
Which of the following is NOT a compliance violation?
Follow the promotion guideline strictly when it comes to promoting your team members
If the potential clients is married, conduct the presentation?
For both the husband and wife because they should listen together
Once you are life-licensed and appointed, you can represent yourself as a
Insurance agent
The Balance Sheet Benefit rider:
Is a cost rider, Reduces cash value accumulation versus a policy without the rider, Increases the amount available for surrender earlier in the policy life.
An IUL plan needs to be monitored to make sure that
It is being funded at an appropriate premium level based on the earned interest rate
What is the most important step to focus on in the first 30 days after joining PFA?
Learning about the company, products and industry through proper field trainings; and get licensed and appointed.
When encountering potential compliance or ethical issues, who should you contact immediately?
PFA Compliance, then your upline QFD & EFD
How does PFA treat outside business activities and cross recruiting?
PFA allows outside business activities as long as these activities DO NOT adversely affect or compete with PFA or its preferred product providers. All outside activities must be disclosed and approved by PFA. PFA does not allow cross-recruiting under any circumstances
Which loan option will result in zero net-cost after 10th policy year?
Participating variable loan
Who are your best prospects for the PFA business?
People who are open-minded, have a stable career, ambitious, coachable, and a balanced-ego with a good attitude
What is the most important thing to do after you deliver a policy to the client?
Recap the product sold throughly, ask fro referrals, invite them to the FOS, and setup ongoing client relationship building and support.
Which of the following injuries would be a qualifying event for the critical Injury ABR?
Severe burns
When recruiting a potential prospect, which of the following is considered non-compliant?
Sign up the prospect yourself, use your own credit card to sign up new recruits, sell the biggest dream to the prospect even if it's exaggerating the facts as long as you can get the prospect to sign up, representing the PFA opportunity as a job (including online job postings)
Which of the following is NOT an Activity of Daily Living?
Swimming
When filling out an insurance application, one must?
Talk the time and walk your applicant through the entire app. Ask every question and enter the answers accurately based on the client's response. If the applicant does not know an answer, write down that they don't know or wait until they give an answer.
What can Living Life by Design be solutions for?
Tax free income, Mortgage protection, College funding
On the IUL illustration the Guaranteed Values column eventually become zeros after some time, regardless of the amount and/or duration of the premium. The reason:
This represents the worst-case scenario of interest earned and fees charged, therefore resulting in a lapse of the policy. This must be fully disclosed to clients at all times
What is PFA'S Crusade?
To educate clients that there are alternative ways to accumulate wealth and protect their assets using both the equity indexing, tax free income, and the living benefits concepts; and by doing so, help people to become financially educated and prepared!
A 63 year old male applying for $250,000 in coverage was last seen by his physician 3 years ago for a physical. He is eligible for an NLG policy.
True
Which is the best market to focus on setting up sales appointments with during the first 30 days?
Warm Market
Any PFA associate who fails to comply with PFA policies, procedures, guidelines and rules as published herein and on the PTRAC may be subject to the following:
Warning, fine, suspension termination.
Which of the following is NOT a major difference of PFA from other brokers?
We sell life insurance and fixed annuities
Which policy holder receives dividends?
Whole Life
Is life insurance an investment?
Yes
PFA has great products, but which of the following is true regarding PFA's view on owning your own policy(s)?
You should only own the product if you beliee its beneficial to you and most importantly, if you can afford it. Owning the product(s) is not required by PFA
Of the following choices, which would be the best place to set up a 1-1 appointment to talk about the PFA opportunity?
Your office
Who should be your very first client?
Yourself