Primerica Readiness

Family rider term incorporates

Spouse term and children term

When term insurance is added to the main policy to enhance the policy or provide benefit or coverage it is called a

Term Rider.

Who does the spendthrift clause in a life insurance policy protect?

The beneficiary

Considering the California insurance code definitions of an insurable event, which of the following statement is

The more predictable a loss the more insurable it is

Which of the following would not be eligible for coverage under key person

The owner of a shop

which of the following is required in order to plan to qualified

The plan must be formally written and communicated to the employees

How are policy loans calculated

The policy's cash value minus unpaid loans and accrued interest

What is the purpose of key-person insurance

To cover decreased business revenues as a result of the death of a key employee

An annuity would normally be purchased by an individual who wants to

provide income for retirement

what effect will the long term care rider have on the death benefit of a life insurance policy if LTC benefits were paid to the insurer

reduce the death benefit

fica tax applies to which of the following

social security

Which risk classification is representative of the majority of people in a certain age group and with similar lifestyles?

standard

If an applicant's health is poorer than that of an average applicant, the policy may be issued

substandard

In a deferred annuity, the difference between the accumulation value, and the surrender value is

surrender charge

if a retirement plan or annuity is qualified this means that

the plan has favorable tax treatment

which of the following is true regarding taxation of accelerated benefits paid under life insurance policy

they are tax free

which method of dealing with risk is applied when insurance is purchased?

transfer

considering the principles of liquidity, how would the policyowner use todays cash value in a life insurance policy

use it for emergency expenses

Because of an injury, an insured has been unable to work for 9 months. He wasn't able to pay his life insurance policy premium, yet the policy remained in force. The policy includes

wavier of premium rider

In whole life insurance, when is the policy cash value scheduled to equal the face amount?

when the insured aged 100

which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insured's death was caused by an accident as defined in the policy

An accidental death rider

What is the maximum loan amount a policy owner may withdraw from a variable universal life insurance policy

An amount not exceeding the cash value

what is the name of the organization that collects and complies information from members concerning insurance claims in order to prevent insurance claim frauds

Fraud Division

an insured bought an insurance policy that requires him to pay $150 in premiums on the 15th of each month. He than takes out an extended vacation and forgets to pay the premium. 10 days later his policy is still in effect. What policy provision allowed this?

Grace period

Hazards are conditions or situations that

Increase the likelihood of a loss occurring

Which of the following statements regard HIV testing is not true

Insurers are barred from requesting HIV testing

Which of the following is TRUE of level term insurance?

It is temporary protection.

which of the following is true regarding pure life annuity settlement

It provides the highest monthly benefit

Dividends received on participating life insurance policies are

Not taxable because they are a return of unused premiums.

Key person can provide protection for all of the following economic losses to a business EXCEPT

Pay the death benefit to the estate of the insured

Per the California insurance code, the definition of shall and may are

Permissive and mandatory

all of the following statements about mutual insurance are correct EXcept

Policy dividends issued by mutral companies are guaranteed and not taxable

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 is a provision found in life insurance policies?

Reinstatement.

if a life insurance policy is purchase by someone with who has no insurable interest it is considered

STOLI

The purpose of the Fair reporting act is too

provide accurate reporting

a group policy must cover at least how many eligible group members?

10

What is the minimum numbers of members required for group life insurance in this state

100

A distribution from an employer sponsored retirement plan or from an IRA is eligible for a tax-free rollover if it is reinvested in an IRA within

60

An annuity has accumulated the cash value of $70,000, of which $30,000 is from premium payments. The annuitant dies during the accumulation phase. The beneficiary will receive...

70

What are the continuing education requirements for agents who market long-term care insurance policy

8 hours of long-term care including the regular CE requirements

Concerning the family protection policy, all of the following statements are true except

Children, upon reaching the age of majority are permitted to convert to an individual policy with proof of insurability.

An employee dies having 6 quarters of coverage during the previous 13 quarter period. What status of coverage does the employee have under social security

Currently insured.

An insurer mails an insurance policy to a new policyowner. When the insurer relinquishes control of the policy, the policy is considered

Delivered.

The owner of a whole life policy with an accidental death rider intentionally kills himself after having the policy for 18 months. What is the insurance company's course of action?

Deny any payment of death benefit

an applicant for insurance license has had a previous application for a professional liscense denied for cause within the last 5 years. The insurance Commissioner may deny the application without hearing

Deny the application without hearing

An adjustable life policy can assume the form of

Either term insurance or permanent insurance

The notice about policy cancellation deliver to senior consumers must include all of the following information Except

Explanation of where the premium have been invested

Which of the following is not a Hazard

Exposure

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

Extended Term.

An insured's flexible premium is invested into a separate account. What type of insurance product did he purchase?

Variable Universal Life.

A married couple purchased a life insurance policy on their newborn 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?

Waiver of premium

An insured had a life insurance policy for $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 in the amount of 250,530. Is there any portion of the proceeds that the beneficiary receives taxable?

Yes the proceeds in excess amount would be taxable

According to the life insurance replacement regulations, which of the following would be an example of a policy replacement

a policy is reissued with a cash value reduction

which statement about life insurance code and ethic is not true

acts of fair and unfair discrimination are prohibited

Who acts on behalf of the principal?

agent

According to the California insurance code, any person legally capable of making an insurance policy is considered

an insurer

which provision may be added to permanent life policy, at no cost, that insures that the policy not lapse so long as there is cash value

automatic premium loan option

when an insurer tries to discourage a policyholder from replacing an existing policy this is called

conversion effort

which of the following losses would likely be covered under accidental death rider

death caused by head on collision

Which of the following is not a standard exclusion in life insurance policy

disability

The owner of a deferred annuity pays $100 in premium one month, and $130 the next month. Which of the following terms best describes this premium payment arrangement?

flexible premium

An insurers field underwriter, a producer has all of the following responsiblities EXCEPT

issue policies on behalf of the insurer

a fraternal benefit society

its members only

an annuitant pays the annuity premium on the 14th of each month. Which of the following best describes this arrangement?

level

which of the following riders provide for the payment of part of the policy death benefit if the insured is diagnosed with terminal illness that will result in the death with 2 years

living needs rider

insurance contract are unilateral in nature, What does that mean?

only one party makes a promise

in order to reinstate a life insurance policy the insured must do all of the following except

pay next years premium in advance

Which of the following is cause of loss

peril

in a group life policy with a death benefit of 50,000

premium cost above $50,000 is taxable as income to the employee

All of the following are true annually renewable term insurance Except

proof of insurability must be provided at each renewal