Fail day 3

The USA patriot act was enacted in

2001

D needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. What kind of policy is needed?

Level term

C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What factor would affect her decision the most?

to cost

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

15-year decreasing term

How long does an individual have to rollover funds from an ira or qualify plan

60 days

Which statement is true regarding a variable whole life policy

A minimum guaranteed Death benefit is provided

A cost of living rider gives the insured

Additional death benefits

To be eligible for social security disability benefits an employee must be unable to

Any occupation

What is considered to be characteristic of an immediate annuity

Benefit payments start within one payment period of purchase

If it's employee shares in the cost of insurance what type of group life insurance would a corporation have

Contributory

A universal life policy is sometimes referred to as an unbundled life policy because the owner can see the interest earned expenses charges and the

Cost of the insurance

Which statement regarding the misstatement of age provision is considered to be true

Coverage will be adjusted to reflect the insured's true age if a misstatement of age is discovered

The combination of whole life and ______ term insurance is referred a family income policy

Decreasing

What type of life insurance has a death benefit that adjust periodically and is written for a specific period of time

Decreasing term

F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule. What kind of policy is needed?

Decreasing term policy

How are surrender charges deducted in a life policy with a rear-end loaded provision?

Deducted when the policy is discontinued

T purchases a $100,000 single premium straight life annuity 5 years ago he has received monthly payments since the inception of the annuity if t dies the insurance company

Does not have to make any further payments

In a life insurance policy which feature states that the policy will not cover certain risk

Exclusion

D owns a whole life policy that was purchased 10 years ago if the premium payment suddenly stops and d takes no additional action witch non forfeited option will the insurer likely proceed with

Extended term

What action should a producer take if the initial premium is not submitted with the application

Forward the application to the insurer without the initial premium

When must insurable interest exist for a life insurance contract to be valid?

Inception of the contract

Who may assign benefits for a group life policy ?

Insured

How are policyowner dividends treated in regards to income tax?

Interest on accumulations is taxed

A policyowner rights are limited under which beneficiary designations

Irrevocable

In an individual retirement account rollover contributions are

Not limited by dollar amount

All these statements concerning settlement options are true except

Only the beneficiary may select

P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to

P only

Which of the following information is not required to be included in a whole life policy

Policy guaranteed dividends tables

The underwriting process involves all of these EXCEPT for

Policy loan

Who has the right to change a revocable beneficiary

Policy owner

Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation?

Policy was returned within the free-look period, premium will be fully refunded

The policy owner is able to choose the frequency of premium payment through what policy features

Premium mode

K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true?

Proceeds will be paid to K's estate if P dies within a specified time

What is the consideration give by an insurer in the consideration clause of a life policy

Promise to pay a death benefit to a named beneficiary

The provision that can be used to put an insurance policy back in force after it has lapse due to nonpayment is called

Reinstatement

What would the Medical Information Bureau (MIB) identify?

Testing positive for marijuana use from a previous screening

Which of the following is true of the owner of an ira names their spouse as beneficiary but then dies before any distributes are made

The account can be rolled into surviving spouse ira

Which statement regarding key employee life insurance is not true

The beneficiary is named by the key employee

The common disaster clause provides that if both the insured and the sole name beneficiary were to die in a common accident witch of the following. Is truw

The clause provides the payment of proceeds to the insured estate

A variable annuity has which of the following characteristics

Underlying equality investment

Which of the following life insurance policies combined term insurance with investment element

Universal life

In order to sell a(n) ______ life policy a producer is required to register with the financial indrusty regulatory authority

Variable

Life insurance immediately create an estate upon the death of an insured witch of the following policy is characterized by a guaranteed minimum premium death benefit

Variable life

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

Variable universal life

A term life policy that have that have the ability to be converted to permanent coverage may due so during a specific time period this conversion period.

Varies according to the contract

What type of insurance offer permanent life coverage with premium that's are payable by life

Whole life

K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective?

The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured

A level premium indicates

the premium is fixed for the entire duration of the contract

Additional coverage can be added to a Whole Life policy by adding a(n)

decreasing term rider

All of these are characteristics of an Adjustable Life policy EXCEPT

face amount can be adjusted using policy dividends

When funds are shifted straight from one IRA to another IRA, what percentage of the tax is withheld?

none