Exam #2

Greatest

All other factors being equal, which of the following terms best describe the coverage provided by term policies, as compared to any other form of protection?

Life settlements

Life expectancy is used in the calculation of which of the following?

There is a requirement to prove insurability on the part of the participants

All of the following are characteristics of a group life insurance plan EXCEPT

Conservative investments like bonds

In reference to fixed annuities, what comprises most of a life insurance company's general account?

The insurer

Which entity determines the amount of accelerated death benefits that will be paid to an insured?

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

Which of the following best describes fixed period settlement option?

Cash value growth

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

The loss must be catastrophic.

Which of the following is NOT a characteristic of an insurable risk?

What requirements the producer needed to meet to obtain the insurance license.

Which of the following is NOT required for a producer to tell a prospect?

The benefit is received tax free

A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then

Buy-Sell Agreement

All of the following are personal uses of life insurance except

The premiums are invested in the insurer's general account

All of the following are true about variable products EXCEPT

Beneficiary's age

All of the following information about a customer must be used in determining annuity suitability EXCEPT

Misrepresentation

An agent who includes a statement or omits a statement which, when taken in context of the whole presentation, may tend to mislead or deceive the persons addressed has committed

Paid-Up Option

An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use?

Are subject to vesting requirements

Employer contributions made to a qualified plan

Employees

For a retirement plan to be qualified, it must be designed for the benefit of

The annuitant will receive the higher of either the guaranteed minimum rate or current rate

In a fixed annuity, which of the following is true regarding the guaranteed interest rate on the investment?

It will likely be higher because the applicant is a substandard risk

In the underwriting process, it was determined that the applicant for life insurance is in poor health and has some dangerous habits. Which of the following is true concerning the policy premium?

Any form of life insurance

Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?

Universal Life

The Waiver of Cost of Insurance rider is found in what type of insurance?

Held or transmitted in any form

Under the Privacy Rule for HIPAA, protected information includes all individually identifiable health information

When the insured reaches age 100

When would a 20-pay whole life policy endow?

Premiums are not tax-deductible as a business expense

Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy?

Payor Benefit Rider

Which of the following riders would NOT cause the Death Benefit to increase?

Substandard Risk

Which of the following types of risk will result in the highest premium?

creditor

Which of the following would be the beneficiary in credit life insurance?

Single Life

Which settlement option provides a single beneficiary with income for the rest of his/her life?

Insureds cannot be randomly selected.

Which statement regarding insurable risks is NOT correct?

The surrender value should be equal to 100% of the premium paid, minus any prior withdrawals and surrender charges.

A deferred annuity is surrendered prior to annuitization. Which of the following best describes the nonforfeiture value of the annuity?

Surrender Charge

After three years of making payments into a flexible premium deferred annuity, the owner decides to surrender the annuity. The insurer returns all the premium payments to the owner, except for a predetermined percentage. What is this percentage called?

15 hours of approved instruction every 2 years

What are the continuing education requirements for licensed insurance agents in the state of New York?

Income tax on distributions and no penalty.

What is the tax consequence of amounts received from a Traditional IRA after the money was left in the tax-deferred account by the beneficiary?

Variable

An insured receives a monthly summary for his life insurance policy. He notices that the cash value of the policy is significantly lower this month than it was last month. What type of policy does the insured have?

The cause of loss insured against

Peril is most easily defined as

Annually on or before March 1st.

The New York Superintendent has the responsibility to make sure each entity transacting insurance in this state remains solvent. Insurers are required to file a statement with the Superintendent