Insurance missed part 4
Return the policy to the insurer
Agent D submitted an application for life insurance on a client A. No money was sent with the application. When Agent D attempted to deliver the policy, he discovered that A had suffered a heart attack since the application was taken. The agent should
At distribution, all amounts received by the employee are tax free
All of the following are TRUE of the federal tax advantages of a qualifies plan EXCEPT - Funds accumulate on a tax-deferred basis - Employee and employer contributions are not counted as income to the employee for income tax purposes - At distribution, all amounts received by the employee are tax free - Employer contributions are tax deductible as ordinary business expense
A portion of the benefit up to a limit is tax free; the rest is taxable income
An individual has been diagnosed with Alzheimer's disease. He is insured under a life insurance policy with the accelerated benefits rider. Which of the following is true regarding taxation of the accelerated benefits?
Increases annually
Annually renewable term policies provide a level death benefit for a premium that
Conditions
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT
With the policy
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than
It does not guarantee that the entire principal amount will be paid out
Which of the following is NOT true regarding the Life with Guaranteed Minimum annuity settlement option?
Both a life insurance license and a securities license
What license or licenses are required to sell variable annuities?
Grace period
What required provision protects against unintentional lapse of the policy?
A group low-cost life insurance
All of the following could own group life insurance EXCEPT
The insured's age at death
The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will determined by taking into account all of the following EXCEPT
Purchase a single premium policy for a reduced face amount
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
Payor benefit rider
Which of the following riders would NOT cause the Death Benefit to increase?
The policy will be interpreted as if the insurer waived its right to have an answer on the application
If an insurer issued a policy based on the application that had unanswered questions, which of the following will be true? - The insurer may deny coverage later, because of the information missing on the application - The policy will be interpreted as if the insurer waived its right to have an answer on the application - The policy will be interpreted as if the insured did not have an answer to the question - The policy will be void
Cash value growth
Which of the following features of the Indexed Whole Life is NOT fixed?
Consumer report
Which of the following reports will provide the underwriter with the information about an insurance applicant's credit?
The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive
An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?
Executive bonus
When an employer offers to give an employee a wage increase in the amount of the premium on an new life insurance policy, this is called a(n)
They can be changed only with the written consent of that beneficiary
Which of the following statements is TRUE concerning irrevocable beneficiaries? - They may be changed at any time - They can never be changed - They may be changed only on the anniversary date of the policy - They can be changed only with the written consent of that beneficiary
Standard risk is representative of the majority of people
Which of the following statements is correct about a standard risk classification in the same age group and with similar lifestyles?
3 days
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
Comfirming future dividends in a life insurance proposal
Which of the following would be considered an illegal inducement to purchase insurance? - Listing the insurance companies the agency represents in a letter - Inviting prospective clients to the grand opening of the producer's new office - Conforming future dividends in a life insurance proposal - Mailing an agency brochure to a prospective client
The Guaranty Association
All of the following entities regulate variable life policies EXCEPT - The Insurance Department The Guaranty Association - Federal government The SEC
Pay the policy proceeds only if it would have issued the policy
A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will
Coverage ends and the policy cannot be reinstated
What happens when a policy is surrendered for its cash value?
A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company
What is a material misrepresentation?
Current assumption life
What is another name for intrest-sensitive whole life insurance?
Option A
Which Universal Life option has a gradually increasing cash value and a level death benefit?
Counteroffer
Which of the following is NOT an essential element of an insurance contract?
The application is given to a prospective insured
Which of the following is NOT the consideration in a policy? - The application given to a prospective insured - Something of value exchanged between parties - The promise to pay covered losses - The premium amount paid at the time of application
2 years
The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years?
Money borrowed from the cash value is taxable
Which of the following is NOT true regarding policy loans? - A policy loan may be repaid after the policy is surrendered - Money borrowed from the cash value is taxable - Policy loans can be repaid at death - An insurer can charge interest on outstanding policy loans
Beneficiaries are not identified by name
Which of the following is TRUE about a class desgnation?
The premium is level for the term of the policy
Which of the following is TRUE regarding the premium in term policies?
