c. The Interest credited to the policy is based off of the performance of a stock market index life the S&P 500 - correct answer Which of the following
... [Show More] statements about Equity Indexed Life insurance is TRUE?
a. The policyowner can decide which separate accounts to invest the policy's cash values into
b. The insured/owner bears all risk regarding cash surrender value, as negative stock market performance can cause the cash values to decrease
c. The interest credited to the policy is based off of the performance of a stock market index like the S&P 500
d. To sell Equity Indexed Life, a producer only needs a securities license
a. Single Premium Immediate Annuity - correct answer Susan, age 65, inherits a substantial sum of money and wants to have the money distributed to her over the rest of her life starting next month. Which product offered by the life insurance industry will allow her to accomplish her objective?
a. Single Premium Immediate Annuity
b. Single Premium Deferred Annuity
c. Flexible Premium Deferred Annuity
d. Flexible Premium Immediate Annuity
a. Life Only - correct answer All of the following annuity income benefits payouts options will affect the amount or duration of payout, except for:
a. Life Only
b. Interest Only
c. Fixed Amount
d. Fixed Period
d. Insurers - correct answer ____________ manufacture and sell insurance coverage in the form of policies or contracts of insurance.
a. Insureds
b. Producers
c. Agencies
d. Insurers
d. Life Income - correct answer James is nearing retirement and has accumulated $175,000 in an annuity. He wants the largest possible monthly benefit for as long as he lives. Which option should he choose?
a. Fixed Amount
b. Life Income with Refund
c. Joint Life
d. Life Income
a. Establishing new insurance laws - correct answer Which of the following is not one of the Insurance Commissioner's duties?
a. Establish new insurance law
b. Conducting investigations
c. Issuing Certificates of Authority
d. Examining Insurers
c. As long as there is sufficient cash value to cover policy expenses due, the insured is not required to pay the planned premium - correct answer Which of the following is a true characteristic of a Variable Universal Life Policy.
a. The insurer bears all risks in accumulating cash value
b. The policy has a fixed premium schedule
c. As long as there is sufficient cash value to cover policy expenses due, the insured is not required to pay the planned premium
d. The policy requires only a life license to sell
d. At least 6 credits earned in the calendar quarters prior to death, disability, or is entitled to retirement benefits - correct answer What is the minimum requirement for currently insured status under the Social Security system?
a. Have 40 quarters of covered employment
b. Have no had a previous Social Security claim
c. Earned more than minimum wage
d. At least 6 credits earned in the 13 calendar quarters prior to death, disability, or is entitled to retirement benefits
b. Employer paid group life insurance premium up to $50,000 of coverage - correct answer The exception to the rule concerning the non-deductibility of life insurance premiums is:
a. Key Employee Insurance
b. Employer paid group life insurance premium up to $50,000 of coverage
c. Life insurance to fund a Buy-Sell Agreement
d. Third-Party Ownership Policies
a. Higher - correct answer K owns a variable annuity with an assumed interest rate of 4%. If the actual performance of the separate account is 5%, the affect on this month's income benefit check will be ________:
a. Higher
b. Same
c. Lower
d. It all depends on the separate account selected
a. Using a Life Insurance policy as collateral for a loan - correct answer All of the following are examples of an absolute assignment, except:
a. Using a Life Insurance policy as collateral for a loan
b. A court orders the existing policyowner to change it to their ex-spouse.
c. A grandparent signs over ownership of a juvenile policy to their grandchild who is now reached age of majority.
d. A business permits the change of ownership of a company owned policy over a retiring executive
c. Taxed as ordinary income - correct answer A permanent policy is surrendered for its cash value, and that sum is greater than the amount of premiums paid in. How is the excess taxed?
a. Taxed as a short term capital gain
b. Taxed as a long term capital gain
c. Taxed as ordinary income
d. No tax is due
c. Convertibility - correct answer A client wants to make sure that they have permanent life insurance policy several years from now when they can afford it without having to prove insurability. What feature should they make sure they have on their new term life insurance policy?
a. Flexibility
b. Renewability
c. Convertibility
d. Adjustability
a. Executive - correct answer The State's __________ branch enforces the existing statutes that have been put in its place.
a. Executive
b. Judicial
c. Electoral
d. Legislative
c. Conditions - correct answer Which of the following is NOT considered one of the essential elements of a contract?
a. Competent Parties
b. Offer of Acceptance
c. Conditions
d. Legal Purpose
d. 180 - correct answer At least how many days in advance must an insurer give the affected party notice of non-renewal?
a. 30
b. 60
c. 90
d. 180 [Show Less]