ILLINOIS LIFE PRODUCER GENERAL EXAM SIMULATOR 95

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ILLINOIS LIFE PRODUCER GENERAL EXAM SIMULATOR (95

QUESTIONS)

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -52 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: All of these are considered sources of underwriting information about an applicant

Answer:

• Credit report

• Inspection report

• Medical information Bureau

Question 2: Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company?

Answer:

Annuity In this situation, an annuity would be recommended.Question 3: In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and

Answer:

the initial premium

Question 4: Life insurance immediately creates an estate upon the death of an insured. Which of the following policies is characterized by a guaranteed minimum death benefit

Answer:

Variable Life

Question 5: A Limited-Pay Life policy has

Answer:

*premium payments limited to a specified number of years (In a Limited-Pay Life policy, premium payments are limited to a specified number of years.) Question 6: All of these statements concerning settlement options are true, except

Answer:

Only the beneficiary may select Question 7: A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid

Answer:

mandatory income tax withholding on the transfer amount There is no federal tax withholding involved in a transfer of funds from one qualified plan into another.Rollovers, however, involve a 20% withholding. Once the rollover takes place to the new custodian, the remainder of the distribution is made.Question 8: The amount of monthly disability benefits payable under Social Security is affected by which of the following factors?

Answer:

The amount of the benefits available from other sources

Question 9: A level premium indicates

Answer:

the premium is fixed for the entire duration of the contract Question 10: How long does an individual have to "rollover" funds from an IRA or qualified plan

Answer:

60 days Or funds could be subject to income taxes and a penalty tax

Question 11: Which type of contract liquidates an estate through recurrent payments?

Answer:

annuity Question 12: What type of life insurance incorporates flexible premiums and an adjustable death benefit?

Answer:

Universal Life

Question 13: Which statement is true regarding a variable whole life policy

Answer:

A minimum guaranteed Death benefit is provided Question 14: N is covered by a Term Life policy and does not make the required premium payment which was due August

• N dies September 15. What action will the insurer take?

Answer:

In this situation, the insurance company will deny the claim, as the policy would have lapsed due to nonpayment by September 15.Question 15: Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies?

Answer:

"policyowner".The policyowner (investor) benefits upon the death of the insured.Question 16: 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 17: A company that owns a life insurance policy on one of its key employees may do all of the following

Answer:

• Cancel policy

• Change beneficiary

• Borrow against cash value

Question 18: What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time

Answer:

Decreasing term Question 19: When does a life insurance contract become effective if the initial premium is not collected during the application process?

Answer:

When producer delivers policy and collects initial premium Question 20: A pilot applies for Life insurance. The insurer approves the application with a $10 additional monthly premium modification due to the risk involved. The pilot declines the additional premium modification. The insurer will then likely issue the coverage with a(n)

Answer:

Aviation exclusion Question 21: Which of the following types of term life policies most likely contains a renewability feature

Answer:

10 year convertible term Question 22: The provision that can be used to put an insurance policy back in force after it has lapsed due to nonpayment is called

Answer:

Reinstatement Question 23: Before a life policy is issued, which of these contract elements is necessary?

Answer:

A signed application by the prospect Question 24: A company that owns a life insurance policy on one of its key employees may do all of the following EXCEPT

Answer:

Change the policy's interest rate