MASSACHUSETTS LIFE INSURANCE ONLY STATE EXAM

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MASSACHUSETTS LIFE INSURANCE ONLY STATE EXAM

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

-Format: Multiple-choice / Flashcard

Question 1: the time limit an individual has to "rollover" funds from an IRA or qualified plan is

Answer:

60 days Question 2: what happens to a life insurance policy when the policy loan balances exceeds the cash value?

Answer:

policy will no longer be in force Question 3: which of the following outlines the authority given to the producer on behalf of the insurer?

Answer:

Producer contract

Question 4: an annuity contract may be returned for a full refund during the

Answer:

free look period

Question 5: life insurance replacement can be best defined as

Answer:

a transaction in which a new life insurance policy is purchased and existing life insurance policy is purchased and an existing life insurance policy is surrendered Question 6: ERISA requires that a summary plan Description must be provided to a new plan member within how many days following the new members eligibility date?

Answer:

90

Question 7: what is another term used for a "pure" life annuity?

Answer:

life income Question 8: T is covered by an Accidental Death and Dismemberment (AD&D) policy that contains an irrevocable beneficiary. what action will the insurance company take if T requests a change of Beneficiary?

Answer:

request of the change will be refused

Question 9: a single-life annuity only has ONE

Answer:

annuitant Question 10: security laws passed by congress are enforced by which federal agency?

Answer:

security and exchange commission Question 11: an insurance company s failure to enforce a contracts provision is called a (n)

Answer:

waiver Question 12: an insurer may contest the validity of a life insurance policy during the policys first two years for all of these reasons EXCEPT

Answer:

Misstatement of age

Question 13: life insurance premiums are computed on what three factors?

Answer:

mortality, interest, expenses Question 14: according to the needs approach, an emergency reserve funds primary purpose is to

Answer:

cover the cost of unexpected expenses Question 15: which of the following would prevent a person from obtaining a Massachusetts resident producer license?

Answer:

residing in a state outside of Massachusetts Question 16: which of the following is considered an activity of daily living when determining an accelerated life insurance benefit?

Answer:

eating

Question 17: which of these statements regarding insurance is false?

Answer:

as the number of insured units increases, the number of losses decreases.Question 18: which benefit supplement added to a life insurance policy insured an entire family?

Answer:

family term rider Question 19: all of these statements concerning group credit life insurance are false EXCEPT

Answer:

the face amount is based on the outstanding loan balance Question 20: under an adjustable life insurance policy, which of the following may NOT be changed without further underwriting

Answer:

the person insured

Question 21: what happens when a policy owners borrows against the cash value of his life insurance policy?

Answer:

the policy proceeds would be reduced by the outstanding loan balance Question 22: according to the law of larg numbers, how would losses be affected if the number of similar insured units increases

Answer:

Predictability of losses will be improved

Question 23: an insurable risk requires

Answer:

that the chance of loss be calculated Question 24: which life insurance settlement option pays stated monthly benefit until both principal and interest are exhausted?

Answer:

Fixed amount installment option Question 25: mike applied for life insurance and was issued a conditional receipt. he is later found to be insurable and is issued a policy. when does his coverage become effective.

Answer:

date of issuance of the conditional receipt

Question 26: which tax cost is normally associated with death?

Answer:

federal estate tax Question 27: which event triggers a deferred annuity to start making benefit payments to the annuitant?

Answer:

when the contract is annuitized