Day 4 fail

A 15-year mortgage is best protected by what kind of life policy?

15-year decreasing term

Which of these is an element of a variable life policy

A fixed, level premium

Which statement is true regarding a variable whole life policy

A minimum guaranteed Death benefit is provided

When an insurance application is taken by a producer, which of these statements is true?

Any changes made on the application require the applicant's initial statement

What is the initial source of underwriting for an insurance policy

Application contains statements from the insured

T is the policyowner for a life insurance policy with an irrevocable beneficiary designations if t wishes to change the beneficiary t must obtain permission from the

Beneficiary

Under an interest sensitive whole life policy

Cash value are determined by interest rates

A policy loan is make possible by which of these life insurance policy features

Cash value provisions

Which of the following is considered a producers fiduciary responsibility

Collect premiums and remit to the insurance company as soon as reasonably possible

Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it?

Decreasing term

Which requirement must be met for an association to be eligible for a group life plan?

Group was formed for a purpose other than acquiring insurance

All of the following statements regarding a tax sheltered annuity are true except

Income derived from the TSA is required income tax free

T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life Annuity. What will this transaction provide?

Income that cannot be outlived by the owner

How does an indexed annuity differ from a fixed annuity

Indexed annuity owners receive credited interest tied to the fluctuations of the linked index

If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act?

Insured's contingent beneficiary

Which of the following statements about accumulated interest earned on dividends from an insurance policy is true

It is taxed as ordinary income

Which of these is not considered to be a right given to a policy owner

Modified a provision in the insurance contract

K owns a whole life policy if k wants an increasing death benefit to protect against inflation which dividend option should she choose

Paid up additional insurance

Which of these statements concerning an individual straight life annuity is accurate

Payments are made to an annuitant for life

A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the

Policy Loan provisions

When an employee is terminated, which statement about a group term life conversion is true?

Policy proceeds will be paid if the employee dies during the conversion period

Which of the following actions is not possible with a universal life policy

Premiums may be applied as a credit against income tax

A retirement plan that sets aside part of the company's net income for distribution to qualified employees is called a

Profit sharing

The premium paid by an employer group insurance are usually considered to be

Tax deductible to the employer

What kind of life insurance product covers children under their parent's policy?

Term rider

What is the underlying concept regarding level premiums?

The early years are charged more than what is needed

Upon policy delivery, a signed good health statement is requested from the applicant why would this be necessary ?

The initial premium was not submitted with the application

K purchased a life policy in 1986 which paid 10% interest in the early years of the policy twenty years after the purchase she received a notice from the insured stating that the policy will soon terminate unless a much higher premium is paid because of falling interest rate this type of policy is known as an ______ life policy

Universal

What type of life insurance incorporates flexible premiums and an adjustable death benefit?

Universal Life

S age 40 is looking to buy a life insurance policy that will allow for increasing or decreasing in coverage as his needs change the policy best suited for a would be

Universal life

Which of the following policies is characterized by a flexible premium and death benefit and allows the policy owner control of the investment aspect of the plan

Variable universal life

K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed?

daughter

All of these are characteristics of an Adjustable Life policy EXCEPT

face amount can be adjusted using policy dividends

A policyowner's rights are limited under which beneficiary designation?

irrevocable

Which of these factors do not play a role in the underwriting of a life insurance policy

marital status

A level premium indicates

the premium is fixed for the entire duration of the contract

A(n) ________ life policy offers the owner investment in products such as money market funds long term bonds and equities

variable