CONNECTICUT LIFE INSURANCE EXAM

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CONNECTICUT LIFE INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -99 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of

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additional whole life coverage at specified times

Question 2: All individuals covered under a group contract will receive a

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certificate Question 3: Which of these is NOT a nonforfeiture provision contained in a life insurance policy?

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Automatic Premium Loan Question 4: Quarterly premium payments increase the annual cost of insurance because

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interest to the insurer is decreased while the administrative costs are increased

Question 5: A whole Life insurance policyowner does NOT have the right to

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change the grace period

Question 6: The incontestable clause allows an insurer to:

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contest a claim during the contestable period Question 7: All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death EXCEPT

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Interest only

Question 8: Which statement about a whole life policy is true?

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Cash value may be borrowed agains Question 9: The type of annuity that can be purchased with one monitary deposit is called a(n):

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immediate annuity Question 10: What is the purpose of the Connecticut Life and Health Insurance Guaranty Association?

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Protects policyowners against insolvent insurance companies Question 11: A policyowner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need?

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Irrevocable Question 12: 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?

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Distribution is subject to federal income tax withholding

Question 13: A policy of adhesion can only be modified by whom?

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insurance company Question 14: An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction?

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20% Question 15: T cash surrenders a recently-issued whole life policy. He also requests that the proceeds be payable to an unrelated third party. T would likely be red-flagged for violation of

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anti-money laundering rules Question 16: Upon policy delivery, a signed good health statement is requested from the applicant. Why would this be necessary?

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The initial premium was NOT submitted with the application

Question 17: The Consideration clause in a life insurance contract contains

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Amount of premium payments and when they are due Question 18: If one producer provides a referral to another producer which results in the sale of an insurance contract, Who will likely be paid a commission?

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The commission will likely be shared between the two producers Question 19: In a Life insurance contract, an insurance company's promise to pay state benefits

is called the:

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Insuring clause

Question 20: K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this?

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Modified whole life Question 21: Who is normally considered to be the owner of a 403(b) tax-sheltered annuity?

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The employee Question 22: All of these statements about Equity Indexed Life Insurance are correct EXCEPT

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The premiums can be lowered or raised, based on investment performance Question 23: Which of the following statements is CORRECT about accelerated death benefits?

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Must have a terminal illness to qualify Question 24: A producer completes an application with a client for a $50,000 Life Insurance policy. At what point is the LATEST a Policy Summary and Buyers Guide must be given to the applicant?

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Upon policy delivery Question 25: The Consideration clause of an insurance contract includes:

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The schedule and amount of premium payments Question 26: Why must an insurance applicant answer all questions on the application?

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Statements and representations on the application are part of the consideration for issuing a policy Question 27: Which of these is considered an unfair trade practice in Connecticut?

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Coercion