PRIMERICA 6
In a variable life insurance policy, all of the following assets are held in the insurance company's general account EXCEPT
cash surrender values
Where are the premiums for fixed annuities invested
general account
The guaranteed insurability rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following EXCEPT
purchase of a new home
Which of the following would be likely to establish a SEP
small employers
According to the common disaster clause , if the insured and primary beneficiary are filed 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
In a life insurance application, all of the following signatures would be required EXCEPT
the home office underwriters
A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy will
continue to increase
What type of an interest rate is guarantee in universal life policies
contract interest rate
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. Which settlement option did J choose?
fixed amount
Because of the imposed blackout period, the surviving spouse will not receive social security benefits until
he qualifies for retirement benefits
When comparing a joint life policy to two individual life policies of the same amount on the same insureds, which condition is true
joint life has a lower premium than the total of the two individual policies
An illustration used in the sale of a life insurance policy must include a label stating
life insurance illustration
Which of the following is not considered a component of an insurance policy premium
number of beneficiaries
A married couple purchase a life insurance policy on their new born baby. They are concerned about what would happen to the policy if either one of them were unable to continue making premium payments due to death or disability. Which policy rider should their agent recommend
payor benefit
What is the exclusion ratio used to determine
the annuity benefit to be excluded from taxes
What is the cost of coverage used on for group life insurance
the average age and the ratio of men to women
All of the following are true of key person insurance EXCEPT
the death benefit is taxable to the business
If any authorized entity fails to file an annual financial solvency statement, or does not reply to a written inquiry within 30 days, they are subject of a penalty of up to
$250 per day of delay not to exceed 25k
A life producer applying for a life settlement broker license may be exempt from the relicensing education and examination requirement if the producer has held an active life license for at least how many years
1 year
An IRA owner who is 57 years old wants to Make a withdrawal from her traditional IRA, what penalty will be imposed
10%
If an individual willfully violates provisions of the Fair Credit Reporting act, what is the maximum civil penalty
2,500
In credit life insurance, who is responsible for paying the policy premiums
Borrower only
Which of the following is consideration on part of an insurer
Paying a claim
all of the following are true of a non qualified 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
Which of the following terms refers to the nontaxable portion of each annuity benefit payment
cost base
If an agent follows the rules and terms of his agent contract, he is exercising his
express authority
A married couple wants to include the entire family in their whole life policy under one rider. Which of the following riders will help them achieve that goal
family term
If an annuity has a guaranteed minimum interest rate, this means
the interest rate will never drop below the guaranteed minimum
Robert wants to insure his 4-year-old son. Robert currently has a policy of his own for $400,000.He is getting ready to lower that amount to $100,000 next year. What is the maximum amount that he can purchase on his son
100,000
Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life. Which settlement option should this policy owner select
Joint and Survivor
The needs approach to calculating the amount of life insurance needed is based on
Predicted needs of the family after the premature death of the insured
All of the following are true of Annually renewable term insurance EXCEPT
Proof of insurability must be provided at each renewal
All of the following are true of credit life EXCEPT
The insured names the beneficiary
An insured is on life support because he has sustained severe , permanent brain damage. His neurologist recommends ending life support.The insured has a life insurance policy through his employer, who would like to issue an accelerated death benefit. Which of the following needs to happen in order for the accelerated death benefit to be paid
The insured would need to issue approval; otherwise it is not possible
According to the life insurance replacement regulations, which of the following would be an example of policy replacement
a policy is reissued with a reduction in cash value
In which of the following scenarios would a producer be allowed to obtain insurance through an unauthorized insurer
if there are no authorized insurers
Who would be allowed catch-up contributions
individuals age 50 or older
What does the application of contract of adhesion mean
insured does not participate so any ambiguities are resolved in favor of the insured
All of the following statements are true regarding an ordinary (straight) life policy EXCEPT
it does not have a guaranteed death benefit
Which of the following is NOT true of an agents implied authority
it is stated in the contract
Which of the following is true regarding pure life annuity settlement option
it provides the highest monthly benefit
which of the following documents used in the underwriting process contains specific medical details about an applicant
attending physicians statement