ILLINOIS LIFE PRODUCER GENERAL EXAM SIMULATOR 125

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ILLINOIS LIFE PRODUCER GENERAL EXAM SIMULATOR (125

QUESTIONS)

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. What type of policy should P purchase?

Answer:

Family Maintenance policy a Family Maintenance policy should be purchased. A Family Maintenance policy pays a monthly income from the date of death of the insured to the end of the preselected period. The payment of the face amount of the policy is payable at the end of such preselected period.Question 2: Which of the following features of a group term life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability

Answer:

The conversion privilege allows an individual to leave the group term plan and continue his or her insurance without providing evidence of insurability.Question 3: What determines the full amount of social security retirement benefits a qualified individual is entitled to receive

Answer:

The Primary Insurance Amount (PIA) determines the full amount of retirement benefits for an eligible person.

Question 4: A cost of living rider gives the insured

Answer:

additional death benefits Can be purchased with many different types of life insurance. This type of coverage is designed to help you hedge your bets against inflation.Ex: if you purchase this rider, your policy is going to increase in value if inflation increases.Question 5: What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take the required minimum distributions from their qualified retirement plan?

Answer:

50% (Distributions must be made by April 1 following the year the participant turns age 70 1/2, or a 50% excise tax will be assessed on the amount that should have been withdrawn.) Question 6: P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase?

Answer:

Deferred In this situation, the type of annuity purchased is best described as deferred.Question 7: What type of group insurance plan involves employees sharing the cost

Answer:

Contributory plan.(Employees share the cost of group insurance with an employer in a contributory plan.) Question 8: Taking receipt of premiums and holding them for the insurance company is an example of

Answer:

Fiduciary responsibility Question 9: Upon delivery of a rated life insurance policy, the Producer must obtain each of the following

Answer:

• The required premium

• Signed statement of good health

• Signed amendment

Question 10: In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What kind of contract is this?

Answer:

Unilateral Insurance contracts are unilateral. This means that only one party (the insurer) makes any kind of enforceable promise.Question 11: Upon delivery of a rated life insurance policy, the Producer must obtain each of the following EXCEPT

Answer:

"Signed HIPAA disclosure" (Upon delivery of a rated life insurance policy, the Producer must obtain all of these EXCEPT a "Signed HIPAA disclosure". The HIPAA disclosure should be taken at the time of sale with the application.) Question 12: Which of the following consists of an offer, acceptance, and consideration

Answer:

Contract Offer, acceptance, and consideration are all elements of a contract.Question 13: A policy loan is made possible by which of these life insurance policy features?

Answer:

Cash value provision The Cash value provision makes a policy loan possible.Question 14: Additional coverage can be added to a Whole Life policy by adding a(n)

Answer:

Decreasing term rider A decreasing term rider can add additional coverage to a whole life policy.

Question 15: The amount of coverage on a group credit life policy is limited to

Answer:

the insured's total loan value With a group credit life policy, the amount of insurance on the life of a debtor is limited to the total amount of the insured's loan.

Question 16: Which of the following statements is CORRECT about accelerated death benefits

Answer:

Must have a terminal illness to qualify Accelerated death benefits provide for the early payment of some portion of the policy face amount should the insured suffer from a terminal illness or injury.Question 17: All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death EXCEPT

Answer:

Interest only The Interest Only option does NOT involve the systematic liquidation of the death proceeds.Question 18: N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase?

Answer:

Fixed Deferred A Fixed Deferred annuity pays out a fixed amount for life starting at a future date.Question 19: A policyowner is able to choose the frequency of premium payments through what policy feature?

Answer:

Premium Mode Premium Mode is the feature that allows the policyowner to select the timing of premium payment, such as monthly, quarterly, annually etc.

Question 20: A whole life insurance policyowner does NOT have the right to

Answer:

Change the grace period Question 21: What type of insurance offers permanent life coverage with premiums that are payable for life

Answer:

whole life