Readiness Exam Missed Q's
Which of the following would NOT trigger the payment of Accelerated Death Benefits?
Being permanently disabled
Partners in a business want to make sure that if one of them were to pass away, their surviving family will receive a fair value for their portion in the business. what life insurance arrangement would be most suited for transitioning the business?
Buy-sell agreement
Under which of the following conditions would life insurance proceeds be taxable by the federal government?
If there is a transfer of value
The provision that sets forth the basic agreement between the insurer and the insured and states the insurers promise to pay the death benefit upon the insured's death is called
Insuring clause
Which dividend option increases the death benefit?
Paid-up additions
A married couple purchase 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 the premium payments due to death or disability. which policy rider should their agent recommend?
Payor benefit
The family rider incorporates
Spouse term and children's term
which of the following is true regarding a joint life annuity
The payments stop at the first death
A client's flexible premium is invested into a separate account. What type ofinsurance product did he purchase?
Variable Universal life
Because of an injury, an insured has been unable to work for 7 months. He wasn't able to pay his life insurance policy premium, yet the policy remains in force. The policy includes:
Waiver of premium rider
All of the following statements are true regarding an ordinary straight life policy except
it does not have a guaranteed death benefit
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
An insured and his spouse recently had a child. What rider would allow the couple to insure the child for a limited period of time at a specific amount?
Children's term rider
Decreasing Term insurance is often used to
Cover a mortgage
When comparing a joint life policy to two individual life policies of the same amount on the same insurance, which condition is true?
Joint life as a lower premium then the total of the two individual policies
Cash Value guarantees in a whole life policy are called
Nonforfeiture values
In whole life insurance, when is the policy cash value scheduled to equal the face amount?
at the insured's age 100
restoring an insured financially after a claim is known as
indemnity
which of the following is a provision found in life insurance policies
reinstatement
A whole life policy that will generate immediate cash value is
single premium policy
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 course of action?
Deny any payment of death benefit
Which of the following employee benefits essentially provides the employee with a wage increase and directs that wage increase to be spent on a life insurance policy?
Executive bonus
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. What settlement option did J choose?
Fixed amount
