LIFE INSURANCE PRACTICE EXAM 100% answered

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Insurable Receipt - ANSWER The reciept given to a life insurance applicant when the application is completed and the initial premium is received is called a(n) Representations - ANSWER Statements i... n the application for insurance that are believed to be true to the best of the applicants knowledge are 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 Continuous Premium (straight) life - ANSWER The most common type of whole life insurance where premiums are payable over the whole life of the insured to age 100 is called. Entire contract - ANSWER The policy and a copy of the application, along with any riders and amendments, is called the Not taxable - ANSWER Money borrowed from the policy's cash value is All annuities (Variable, Deferreed & Equity Indexed) - ANSWER Which of the following annuity products requires an agent to hold a securities license? Life income annuity - ANSWER Which type of annuity settlement stops when the annuitant dies? 59 1/2 - ANSWER At what age can a participant receive distributions from a qualified plan without incurring a 10% penalty 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? Adjustable life - ANSWER Which type of policy allows the insured to change the amount of the dwah benefit, the amount of premium, or the type of coverage S their needs change? 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? Nonadmitted - ANSWER Any insurer who is NOT approved to do business in this state is considered Insurable Interest Exists - ANSWER To prevent people from profiting from a loss, insurers is the certain Adjusts the death benefit based on the premiums that were paid - ANSWER If a misstatement of age is discovered during the processing of a life insurance claim what will the insurer do? Policy Exclusions - ANSWER Which of the following allows an insurance company to deny coverage of the insurers eewth occurs in war? Evidence of insurability is usually required - ANSWER Each of the following is a typical characteristic of groups life insurance EXCEPT 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 Not subject to any taxes - ANSWER A life insurance death benefit paid in a lump sum to a beneficiary is Accumulation at Interest - ANSWER Which of the following is NOT a nonforfeiture option in whole life policies? Annuitant - ANSWER Which of the following indicates the person upon whose life the annuity income amount is determined? 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 Dividends are NOT taxable - ANSWER Which statement is INCORRECT concerning policy dividends Substandard - ANSWER What is the risk classification for those who are insurable, but have a higher than average risk? 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? Insurer - ANSWER An insurance agent represents the Insurance - ANSWER The transfer of a possible financial loss to another party refers to Underwriting process - ANSWER Determine the company's risk regarding a proposed insured Delivered - ANSWER An insurer mails an insurance policy to a new policyowner. When the insurer relinquishes control of the policy, the policy is considered 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: 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 Free look - ANSWER An agent delivers a policy to an insured, and 9 days later the insured returns the policy and wants a complete refund. What provision covers this circumstance? Accumulation period - ANSWER The "pay in" phase of the annuity is known as what period? Each party relies upon the truthfulness of the other - ANSWER For an insurance contract, the principle of utmost good faith means 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? Joint and Survivor - ANSWER Which of the following types of annuities would be best suited for a retired couple who are seeking income for as long as either lives? 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? Medical Information on applicants for life and health insurance - ANSWER The MIB is a nonprofit trade association that maintains Grace Period - ANSWER It's purpose in life insurance policies is to protect the policy owner against an inintentional lapse of the policy. Limited Payment - ANSWER What type of permanent insurance allows the policy owner to pay for a policy in a specified period of time, and the policy owner does not have to make any more premium payments for the life o [Show More]

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