quiz

an investor buys a life polilcy on an elderly person in order to sell it for a life settlement. this is an example of

a STOLI policy

which of the following would NOT fall into the category of costs associated with death?

answer: the expense of a vacation for surviving family members

all of the following are true key person insurance excepts

answer: the plan is funded by permanent insurance only.

which of the following is the best reason to purchase life insurance rather than annuities

answer:to create an estate -with insureance, the death benefit creates an immediate estate should the insured die

a key person insurance policy can pay for which of the following

costs of training a replacement

which of the following is correct concerning the taxation of premiums in a key-person life insurance policy

premiums are not tax deductible as a business expense

which of the following types of risk will result in the highest premium

substandard risk

in regards to life insurance contract, the temporary term is

the period of time during which a binding receipt covers s policyholder

the insurer discovered that one of the applicants for life insurance missed a couple of questions on the application. what must the insurer do with the application?

answer: return to the application for completion

which of the following is an example of liquidity in a life insurance contract?

answer: the cash value available to the policyowner

which of the following would describe a legal document which would dictate who can buy a deceased partner's share of a business and for what amount?

answer: buy-sell agreement

which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision- making process

answer: buyers guide