LIFE INSURANCE PRACTICE EXAM EXAM QUESTIONS

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LIFE INSURANCE PRACTICE EXAM EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -49 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Delivered

Answer:

An insurer mails an insurance policy to a new policyowner. When the insurer relinquishes control of the policy, the policy is considered

Question 2: Certificate of Insurance

Answer:

What do employees covered under a group contract receive?

Question 3: Agents Report

Answer:

This is the prtbirbthenapplication that provides information about an applicants dinadial condition and character, as well as the purpose of sale and how long the agent has known the applicant:

Question 4: Representations

Answer:

Statements in the application for insurance that are believed to be true to the best of the applicants knowledge are

Question 5: Single premium immediate annuity

Answer:

An annuity that is purchased with a lump-sum payment, and that begins income payments within one year is a

Question 6: Insurer

Answer:

An insurance agent represents the

Question 7: Buy-Sell Agreement

Answer:

Two business partners own life insurance on each other. If one partner dies, which of the following contracts will allow the surviving partner to use the death benefit to purchase the deceased's business interests?

Question 8: The coverage decrease but the premiums stay the samw

Answer:

At age 25, an individual purchased a decreasing term policy. What happens to the coverage and the premiums as the insured gets older?

Question 9: Accumulation period

Answer:

The "pay in" phase of the annuity is known as what period?

Question 10: Not subject to any taxes

Answer:

A life insurance death benefit paid in a lump sum to a beneficiary is

Question 11: Either the cash value or the premiums paid, whichever is greater

Answer:

If an annuitant dies during the accumulation period, what will the beneficiary receive?

Question 12: Insurance

Answer:

The transfer of a possible financial loss to another party refers to

Question 13: Grace Period

Answer:

It's purpose in life insurance policies is to protect the policy owner against an inintentional lapse of the policy.

Question 14: Insurable Interest Exists

Answer:

To prevent people from profiting from a loss, insurers is the certain

Question 15: 31 days

Answer:

How long does an employee have to convert group policy coverage to an individual policy without evidence of insurability?

Question 16: Nonadmitted

Answer:

Any insurer who is NOT approved to do business in this state is considered

Question 17: Medical Information on applicants for life and health insurance

Answer:

The MIB is a nonprofit trade association that maintains

Question 18: Entire contract

Answer:

The policy and a copy of the application, along with any riders and amendments, is called the

Question 19: Annuitant

Answer:

Which of the following indicates the person upon whose life the annuity income amount is determined?Question 20: Provide the annuitant with an interest rate that is lesser of the guaranteed or current rate

Answer:

An annuity is considered fixed when it does all of the following EXCEPT

Question 21: Alien Insurer

Answer:

London Mutual Life is an insurer incorporated in England, and is transacting business in this state.London Muthal would be considered what type of insurer?

Question 22: Dividends are NOT taxable

Answer:

Which statement is INCORRECT concerning policy dividends

Question 23: Joint Life

Answer:

A whole life product that covers 2 lives and provides for payment or the death benefit on the death of the riser insurer is called

Question 24: 59 1/2

Answer:

At what age can a participant receive distributions from a qualified plan without incurring a 10% penalty

Question 25: Accumulation at Interest

Answer:

Which of the following is NOT a nonforfeiture option in whole life policies?

Question 26: Fixed-Period Installments

Answer:

A life settlement option that pays out the death benefit is. Incrementally, in a specified amount until all of the proceeds are exhausted, is called

Question 27: 403(b) Tax-Sheltered Annuity (TSAs)

Answer:

Which of the following retirement plans is a special tax favored plan for NONPROFIT, charitable, educational or religious groups?

Question 28: Contestability

Answer:

What does the payor benefit rider protect?