FREE AND STUDY GAMES ABOUT CHAPTER 4 EXAM

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FREE AND STUDY GAMES ABOUT CHAPTER 4 EXAM

QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

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-Guarantee passing score -14 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: An insured has a Modified Endowment Contract. He wants to withdraw some money in order to pay medical bills. Which of the following is true?

Answer:

He will have to pay a penalty if he is younger than 59½.Question 2: If $100,000 of life insurance proceeds were used in a settlement option, which paid $13,000 per year for ten years, which of the following would be taxable annually?

Answer:

$3,000

Question 3: A tax-sheltered annuity is a special tax-favored retirement plan available to

Answer:

Certain groups of employees only.Question 4: Which of the following is INCORRECT concerning a noncontributory group plan?

Answer:

The employees receive individual policies.

Question 5: What does "liquidity" refer to in a life insurance policy?

Answer:

Cash values can be borrowed at any time.Question 6: What is the number of credits required for fully insured status for Social Security disability benefits?

Answer:

40 credits Question 7: If a retirement plan or annuity is "qualified," this means

Answer:

It is approved by the IRS.Question 8: The minimum number of credits required for partially insured status for Social Security disability benefits is

Answer:

• credits.

Question 9: All of the following statements concerning an employer sponsored nonqualified retirement plan are true EXCEPT

Answer:

The employer can receive a current tax deduction for any contributions made to the plan.

Question 10: Employer contributions made to a qualified plan

Answer:

Are subject to vesting requirements.Question 11: Which of the following is the required number of participants in a contributory group plan?

Answer:

75% Question 12: All of the following are general requirements of a qualified plan EXCEPT

Answer:

The plan must provide an offset for social security benefits.

Question 13: If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a

Answer:

Settlement option.Question 14: A partnership buy-sell agreement in which each partner purchases insurance on the life of each of the other partners is called a

Answer:

Cross-purchase plan.