Exam questions
Cash values in a whole life policy are called ?
Nonforfeiture values
All of the following are true of the credit life insurance except?
The insureds names beneficiary
All of the following are true of the survivorship policy except
The premium is based on the age of each insured
Which of the following is true regarding premium and a 10 year level premium policy?
The premium remain level for 10 years
In Massachusetts how often are license required to complete continuing education requirement
Every 36 months
All the following are true of annually renewable term insurance except ?
Proof of insurability must be provided at each renewal
According to life ins. Replacement regulations, which of the following would be an example of policy replacement ?
A policy is reissued with a reduction in cash value
If an insured purchases an insurance policy with a large deductible what risk management is this
Retention
Which of the following is true regarding pure life annuity settlement option ?
Provides highest monthly benefit
Sally's setup an individual retirement account that her employer is now contributing too. Her employers contributions are not included in her gross annual income. What kind of retirement plan is this ?
Simplified employee pension
In a deferred annuity The difference between the accumulation value and cash surrender value is
Surrender charge
All the following are true of the group life insurance except?
The insureds each on their own contract
In which of the following scenarios would a producer be allowed to obtain insurance through An unauthorized insurer?
If there are no authorized insurers for a specific type of coverage in this state
An annuitant pays the annuity premium on the 14th of each month. Which best describes the arrangement ?
Level
Which of the following would reduce the amount of the death benefit?
Failure to repay a policy loan
Variable insurance and variable annuities are regulated by
Finra, sec, & department of insurance
J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid the remaining amount will go to the contingent beneficiary. What settlement option is this ?
Fixed amount
All of the following are required for HIV testing except?
If HIV is present The person may be rated but cannot be declined
John's annuity has accumulated the cash value of 70 K of which 30 K is from premium payments he dies during the accumulation phase his beneficiary receives ?
70k
An individual receive a lump sum inheritance. He would like to use the money to create a lifetime income but will be retiring soon. He purchases and annuity and wishes to receive payments beginning 2 months. What did he buy ?
Single premium deferred annuity
Annuities certain limit the amount paid by the annuity to a certain fixed
Period or fixed amount
Under which of the following conditions would life insurance proceeds be taxable by the federal government ?
If there is a transfer for value
What kind of investment is a level-based product that can be described as a combination of decreasing term insurance and investment fund?
Variable life
Which of the following would not trigger the payment of accelerated death benefits
Being permanently disabled
Which of the following best represents what is meant by life insurance create an immediate estate?
Face value of the policy is payable to the beneficiary upon the death of the insured
What is the difference between a straight life policy and 20 pay whole life policy?
Premium payment period
Which of the following would be true of both the fixed period an fixed amount settlement options ?
Both guarantee that the principal and the interest will be fully paid out
Which of the following indicates the person upon whose life the annuity income amount is determined ?
Annuitant
Which of the following is the distinguishing characteristic of the interest adjusted net-cost method
Considering the time value of money in comparing life insurance costs