問題一覧
1
A policy that becomes a modified Endowment contract
Will lose many of its tax advantages
2
K owns a whole life policy if Kay wants an increasing death benefit to protect against inflation, which dividend option should she choose?
Paid up additional insurance
3
Which of these is not a type of agent authority?
Principal
4
How long is a temporary license valid?
180 days
5
Insurance policies are considered out to contracts because
Performance is conditioned upon a future occurrence
6
Dividends paid from a life insurance policy are
Issued by the insurer
7
The sole proprietor may use this plan only if the employees of this business are included
keogh pension plan
8
A variable insurance policy
Does not guarantee a return on its investment account
9
At the age of 45 an individual withdraws a $50,000 from his qualified profit-sharing plan and then deposits this amount into a personal savings account. This action would result in.
Income tax and a 10% penalty assessed upon funds withdrawn from a qualified plan
10
The Tennessee guaranteed association is subject to review in regulation by the commissioner. A financial statement must be submitted no later than ___ Of each year
March 30
11
At what time must the policy owner have insurable interest on the insured in order for the life policy to be valid?
at the time of the application
12
Which of these Is not a source of funding for Social Security benefits
The federal government
13
All of these settlement options involve the systematic liquidation of the death proceeds in the event of the insured death except
Interest only
14
Which of these is not an element of life insurance premiums?
Morbidity rate
15
Which of these provisions require proof of insurability after a policy has lapsed
Reinstatement
16
Which of these statements describe a modified endowment contract
Exceeded the maximum amount of premium that could be paid into a policy and still have it recognized as a life insurance contract
17
Which of the following information is not required to be included in a whole life policy
Policies guaranteed dividend table
18
P is the insured on a participating life policy which statement is true if peas premiums are waived due to disability
He will still receive declared dividends
19
Which of the following types of permanent life insurance policies offers the highest initial cash value
Single premium
20
What kind of insurance policy supplies and income stream over a set period of time that starts when the insured dies
family maintenance policy
21
N is covered by a term life policy and does not make the required premium payment which was due August 1 and dies September 15 what action will the insure take?
Claim will be denied
22
Which of these arrangements allows one to bypass insurable interest laws
Investor or originated life insurance
23
Traditional individual retirement annuity IRA distributions must start by
April 1 of the year following the year that Participant attains age 70 1/2
24
A trustee to trustee transfer of rollover funds in a qualified plan allows a participant to avoid
Mandatory income tax withholding on the transfer amount
25
55 year-old recently received $30,000 distribution from a previous employers 401(k) plan -$6000 withholding which federal taxes apply if none of the funds were rolled over
Income tax plus a 10% penalty tax on $30,000
26
The reason for back dating policy is
To obtain a premium rate based on an earlier age
27
Which of the following is true about a qualified retirement that is top Heavy
More than 60% of plan assets are in key employee accounts
28
Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six months. Q die suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflect which of the following insurance contract features.
Aleatory
29
A contract where one party either excepts or reject the terms of a contract written by another party is called a contract of
Adhesion
30
How are surrender charges deducted in a life policy with a rear-end loaded provision?
Deducted when the policy is discontinued
31
D Needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. What kind of policies is needed.
Level term
32
Which of the following is an example of a non-forfeiture option?
Reduced paid up option
33
Which statement about a whole life policy is true
Cash value may be borrowed against
34
Which product would best serve a retired individual looking to invest a lump sum of money through an insurance company
Annuity
35
Company XYZ offers a group term life insurance plan to its employees what does each employee covered under this plan receive
Certificate of insurance
36
___ Of personal life insurance premiums is usually deductible for federal income tax purpose
0%
37
M has an insurance policy that also has an outstanding policy loan at the time of M’s death. The insurer will deduct the outstanding loan balance from the.
Policy proceeds
38
Which of these characteristics is consistent with a straight life policy?
Premiums are payable for as long as there is insurance coverage enforce
39
F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule what kind of policy is needed?
Decreasing term policy
40
An applicant medical information received from the medical information bureau may be furnished to the
Applicants physician
41
The most important factor to consider when determining whether to convert term insurance at the insured attained age or the insured original age is
The cost
42
What does the ensuring agreement in a life insurance contract established?
An insurers basic promise
43
Whose life is covered on a life insurance policy that contains a payor benefit class
Child
44
Which statement is true regarding a variable whole life policy
A minimum guaranteed death benefit is provided
45
Insurance policies are offered on a ticket or leave it basis, which makes them
Contracts of adhesion
46
In a qualified retirement plan the yearly contributions to an employee’s account
I restricted to the maximum levels set by the IRS
47
Which of these would be considered a limited pay life policy?
Life paid up at age 70
48
What benefit does the payor Clause on a juvenile life policy provide
Premiums are waived if the payor becomes disabled
49
A life insurance arrangement which circumvent insurable interest statutes is called
Investor originated life insurance
50
The____ has the right to change a life insurance policies beneficiary
Policy owner
51
Who would be liable for an insurance claim on a policy sold by a Tennessee producer and issued by an insurance company, not authorized to conduct business in Tennessee
The producer
52
Before an insurance policy is issued, which of these components of the contract is required
Applicants signature on application
53
How are policy owner dividends treated in regards to income tax
Interest on accumulations is taxed
54
Which writer provides coverage for a child under a parent life insurance policy
Child term, rider
55
K applies for a life insurance policy on herself and submit the initial premium with the application. She has given a receipt by the agent stating that coverage begins immediately if the application is approved, what kind of receipt was used?
Conditional
56
How long does the coverage normally remain on a limited pay life policy?
Age 100
57
Who is normally considered to be the owner of a 403B tax, sheltered annuity
The employee
58
All of these statements about equity index life insurance are correct except
The premiums can be lowered or raised based on Investment performances
59
A term life insurance policy matures
Upon the insured death during the term of the policy
60
The amount of coverage on a group credit life policy is limited to
The insured total loan value
61
Credit life insurance
Issued in amount not to exceed the amount of the loan
62
Additional coverage can be added to a whole life policy by adding aN
Decreasing term rider
63
Which of these is NOT a reason for a business to buy key person life insurance?
A pension deficiency if the key employee dies
64
He has recently signed an application for insurance. The insurer must advise her in writing that investigative consumer report may be conducted according to the.
Fair credit reporting act
65
A return of premium life insurance policy is
Whole life and increasing term
66
Which of the following life insurance policies, combined term insurance with an investment element?
Universal life
67
In a key employee life insurance policy, the third-party owner can be all of the following except
Insured
68
If a contract of adhesion contains complicated language would the interpretation be in favor of
Insured
69
A whole life insurance policy does not wish to continue making premium payments, which of the following, and enables the policy owner to sell the policy for more than it’s cash value
Life settlement contract
70
S is covered by a whole life policy which insurance product can cover his children
Child term, rider
71
Kay is looking to purchase renewable term insurance which type of term insurance may be renew
Level
72
The amount of monthly disability benefits, payable under Social Security is affected by which of the following factors
Amount of the benefits available from other sources
73
Which of the following does Social Security not provide benefits for?
Dismemberment
74
Which of the following is true if the owner of an IRA name is their spouse as beneficiary, but then dies before any distributions are made
The account can be rolled into the surviving spouses IRA
75
Which of the following life insurance policies combined insurance with an investment element?
Universal life
76
When does a life insurance contract become effective if the initial premium is not collected during the application process?
When the producer delivers policy and initial premium
77
What action should a producer take if the initial premium is not submitted with the application
For the application to the insurer without the initial premium
78
What is the underlying concept regarding level premiums?
The early years are charged more than what is needed
79
Whole life insurance policies are contractually guaranteed to provide each of the following except
partial withdrawal features beyond a surrender charge period
80
What action can a policy owner take if an application for a bank loan requires collate
Assigned policy ownership to the bank
81
An underwriter determines that a life insurance applicants risk should be classified due to a health issue. This policy may be issued with an
Extra premium
82
An employee requested that the balance of her 401(k) account be sent directly to her in one lump sum upon receipt of the distribution she immediately has the funds rolled over into an IRA. What is the tax consequence of the distribution sent to this employee?
Distribution is subject to federal income tax withholding
83
What is being delivered during a policy delivery?
Insurance contract from proposed insured
84
Additional coverage can be added to a whole life policy by adding
Decreasing term rider
85
What does a 401(k) plan generally provide its participants?
Salary-deferral contributions
86
The free look provision begins
Upon receipt of the policy by the policy owner
87
A ___ rider May be used to include coverage for children under their parents life insurance policy
Term
88
Which of these is not a reason for purchasing life insurance on the life of a minor?
If both parents were to die, it would provide death benefits to the child
89
Be receives yearly dividends, and interest from a participating life insurance policy which of these should be included as gross income for federal income tax purpose
Interest only
90
All of these insurance products require an agent to have proper FINRA securities registration in order to sell them except for
Modified whole life
91
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary
life income
92
Which of the following provisions guarantees that premiums will be waived if a juvenile life policy owner becomes disabled
Payor clause
93
If a corporation pays the premium on a group life policy for its employees, the corporation is required to report how much additional taxable income for each employee
Nothing
94
B is an insurance producer who occasionally engages in financial planning if the cells and insurance policy during the course of a financial planning seminar B must disclose to the client
That a commission will be earned in addition to any fee charged for financial planning
95
A Universal Life policy is sometimes referred to as an unbundled Life Policy because the owner can see the interest earned, cost of insurance, and the
Expense charges
96
What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time
Decreasing term
97
Which of these retirement plans can be started by an employee even if another plan is an existence
Individual retirement account IRA
98
T took out a $50,000 life insurance policy with an accidental death and dismemberment rider Five years later T commits suicide, how much will the insure pay?
$50,000
99
D is the policy owner and insured for $50,000 life insurance policy. The beneficiary is Dee‘s wife D and his wife divorce and D remarries transferring ownership of his policy to his new wife if he dies without making any further changes to whom will the policy proceeds? Be paid to
Ex-wife