Exam FX
Which dividend option will increase the death benefit
Paid-up additions
In which of the following instances would the premium be tax deductible
Premiums paid by an employer on a $30,000 group term life insurance plan for employees
Who is a person other than a viator that enters into a viatical settlement contract
Provider
Which nonforfeiture option provides coverage for the longest period of time?
Reduced Paid-Up
The policy owner pays for her life insurance annually. Until now she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help her pay for her next premium. What option would allow her to do this?
Reduction of premium
An IRA purchased by a smaller employer to cover employees, is known as
Simplified employee pension plan (SEP)
Which of the following would help prevent a universal life policy from lapsing
Target premium
Which of the following best describes what the annuity period is
The period of time during which accumulated money is converted into income payments
All of the following identify purposes of the insurance information and privacy act except
To establish fair and marketable advertisement procedures
All of the following are true regarding the convertibility option under a term life insurance policy EXCEPT
Upon conversion, the death benefit of the permanent policy will be reduced by 50%
Which of the following types of policies allows for a flexible premium and a variable investment component
Variable universal life insurance
The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called
Waiver of Premium
All of the following benefits are available under Social Security EXCEPT
Welfare benefits
Under which installments option does the annuitant select the amount of each payment, and the insurer determines how long they will pay benefits?
a fixed amount
Net premium + expenses =
gross premium
Annuities can be used to fund which of the following?
retirement plans
Under the L&H Guaranty Association, the maximum benefit one contract holder may receive in benefits, regardless of the number of contracts held, is
$5,000,000
Which of the following is the required number of participants in a contributory group plan
75%
A straight life policy has what type of premium
A level annual premium for the life of the insured
The LEAST expensive first year premium is found in which if the following policies
Annually renewable term
How are state Insurance Guaranty Associations funded?
By their members - authorized insurers
Which of the following will NOT be an appropriate use of a deferred annuity
Creating an estate
What does "level" refer to in level term insurance
Face amount
W owns a policy in which she is covered as the bread-winner with permanent insurance and with decreasing term insurance in the form of a rider. What type of policy is this?
Family income policy
All of the following are dividend options, EXCET
Fixed period installments
When an insurer requires a written proof of loss after notice of such loss has been given by the insured or beneficiary the company must
Furnish a blank form to be used for that purpose
Life insurance death proceeds are
Generally not taxed as income
Which of the following settlement options in life insurance is known as straight life
Life Income
