Guaranteed exam 5
which of the following policies would NOT offer a policy loan option?
Term life
which of the following statements concerning the Medical Information Bureau is correct?
The Medical Information Bureau assist underwriters in evaluation and classifying risk
In a noncontributory group policy
100% of eligible employees must participate
what is a specific requirement regarding the number of employees in a SIMPLE plan
No more than 100 employees
Dividends received on participating life insurance policies are
Not taxable because they are a return of unused premiums
An annuity would normally be purchased by an individual who wants to
Provide income for retirement
According to the common disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?
The primary beneficiary died before the insured
cash value guarantees in a whole life policy are a called
nonforfeiture values.
An insured has a life insurance policy in the amount of $250,000 naming his wife as beneficiary. Upon his death, his beneficiary decides not to receive the death benefit for some time. When she finally receives the death benefit check, it's in the amount of $250,530. is any portion of the proceeds that the beneficiary receives taxable?
Yes, proceeds in excess of face amount are taxable as interest.
which dividend option will increase the death benefit?
Paid-up additions
Which of the following will be eligible for a tax-sheltered annuity?
Public school teachers
An insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days of the initial request?
3 days
Which of the following is NOT an indicator of a competent party?
Business profession
All of the following are true of a nonqualified deferred compensation plan EXCEPT
Contributions are tax deductible
An individual has a $200,000 convertible term life insurance policy. if he chooses, he can
Convert to a whole life policy for the same face amount without proof of insurability
How will life insurance proceeds that are paid as a lump sum received by the beneficiary?
Free of federal income taxation
Under what circumstances will the contingent beneficiary receive the death benefit?
If the primary beneficiary dies before the insured
If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan
Immediately
which of the following is NOT true regarding a deferred annuity?
Income payments begin within 1 year from the date of purchase
If a life insurance policy is purchased by someone who has no insurable interest in the insured, it is considered
STOLI
what does the application of contract of adhesion mean?
Since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the insured
All of the following are consideration in an insurance policy EXCEPT
The cash value in the policy
An insured decides to surrender his Whole Life insurance policy. The cash value at surrender is higher than the premiums paid into the policy, due to interest. What part of the surrender value would be income taxable?
The difference between the premiums paid and the cash value
All of the following are general requirements of a qualified plan EXCEPT
The plan must be temporary
which of the following policies would NOT offer a policy loan option?
term life
