All of the following would be considered rebating except

Person entitled to exercise the rights and priveleges in the policy

Amount paid upon the death of the insured in a life insurance policy

The death protection component of Universal Life Insurance is always....

The "owner" is the person who purchases the contract and has all of the rights such as naming the beneficiary and surrendering the annuity. The owner, however, does not have to be the one who receives the benefits; it could be the annuitant or the beneficiary.

The 3 risk classifications used by underwriters for life insurance

Selection, classification, and rating of risks

Within 30 days of INITIAL DISCOVERY

To allow the consume to compare the costs of different policies

An Insurer wants to begin underwriting procedures for an applicant. What source will it consult for the majority of its underwriting information?

When a persons only options for a contract are on a take it or leave it basis; prepared only by the insurer.

Considered to be the average risk; representative of the majority of people in their age and with similar lifestyles

Insurers (this is so the insurers can compare the info that have collected on the individual)

Obtain appropriate signatures on the application for insurance, help prevent adverse selection, and solicit business that will fall within the insurer's underwriting guidelines.

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

Something of value exchanged between the insurer and the insurer is considered....

When an insurer's underwriter approves coverage and issues a policy

Contracts that are prepared by one party and submitted to the other party on a take it or leave it basis are classified as?

It is intended to provide coverage on a date earlier than the age of the issuance of the policy

Pay the policy proceeds only if it would have issued the policy

If a change needs to be made to the application for insurance, the agent may do all of the following....

When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is..

Whether an insurable interest exists between the individuals

An underwriter may obtain information on an applicant's hobbies, financial status, and habits by ordering a(n)

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check fin from the insurer. From what type of insurer did the insured purchase the policy?

When the application is signed and a check is given to the agent

The insurer's domicile of location of incorporation will determine whether a company is domestic, foreign, or alien

Licensed in the state where the individual resides.

Licensed, however, not in the state the indivisible resides.

Licensed, however, is outside of the U.S.

Insurers who are owned by stockholders who have the usual rights of ownership, including the right of voting?

When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable statement of Good Health

Synonym for authorized insurer

A presentation of non-guaranteed elements of a policy

One-sided: only one party makes an enforceable promise

Will result in having to pay the highest premium due to health, history, habits, etc.

Exchange of unequal values

Insurers commonly require HIV testing; the insurer must abide by a variety of rules created by its respective state.

Ownership is the difference between these two companies. Mutual-policyholders; Stock-stockholders

"At the time of the application" is when interest must exist.

Regulates consumer reports

If an agent fails to obtain an applicant's signature on the application, the agent must...

An insurance contract that requires both the insured and the insurer meet certain conditions in order for the contract to be enforceable is...

(Example) When Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. During the underwriting process, the insurance company found no reason to reject the risk or classify it other than as standard. Y was killed in an automobile accident on August 22, before the policy was issued. In this case, the insurance company will...

Must be delivered along with the policy and will provide the producer's name & address, the insurance company's home office address, the generic name of the policy issued, and premium, cash value, surrender value & death benefit figures for specific policy years.

Synonym for a substandard risk classification

A participating insurance policy will pay _________ to the owner based upon actual mortality cost, interest earned and costs.

________________ are owned and controlled by their policyholders. Any surplus money is returned to the policyholders as dividends.

An individual who willfully violates this Act enough to constitute a general pattern or business practice will be subject to a penalty of up to....

Insureds who have been classified as preferred risk will...

On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are

What relationship is not an example of insurable interest?

Insurance is a contract by which one seeks to protect another from...

When is the earliest a policy may go into effect?

What is not a consideration in a policy?

Part 2 of the application for life insurance provides questions regarding all of the following..

If an insurer issued a policy based on the application that had unanswered questions it would...

Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must...

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements...

If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information of the applicant...

In classifying a risk, the Home Office underwriting department will look at all of the following..

A generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process.

In order for an insurer to legally transact insurance, it must obtain what?

Primary source of insurance underwriting

All of the following are requirements for life insurance illustrations..

Stranger-originated life insurance (STOLI) policies are in direct opposition to the principle of...

When would a misrepresentation on the insurance application be considered fraud?

According to the Fair Credit Reporting Act, all of the following would be considered negative information about a consumer:

Included in a policy summary

The four essential elements of all legal contracts:

The Medical Information Bureau (MIB) was created to protect...?

An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?

Requires the entire premium to be paid in one limp sum at the policy's inception.

In an annuity, the accumulated money is converted into a stream of income during what time period?

Best description of annually renewable term insurance...

The policyowner of an adjustable life policy wants to increase the death benefit. What is the result of this?

Charge a level annual premium throughout the insured's lifetime and provide a level, guaranteed death benefit.

(Example) your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?

When would a 20-pay whole life policy endow?

Whole life policies offer level premium based on the issue age, guaranteed, level death benefit, cash value that is scheduled to equal the face amount at the insured's age 100, and living benefits, which include policy loans.

(Example) A man purchased a $90,000 annuity with a single premium, and began receiving payments 2 months after that. What type of annuity is it?

What characteristic makes whole life permanent protection?

What are the three basic types of term coverage available, based on how the face amount (death benefit) changes during the policy term:

Best description of what an annuity period is:

Policy which allows the partial withdrawal, or surrender, of the policy cash value

The cash value of a variable life policy is not guaranteed and fluctuates with the_________________ in which the premiums have been invested by the insurer.

The policyowner of a Universal Life Policy may skip paying the premium and the policy will not lapse as long as...

Both Universal Life and Variable Life have a...

The main difference between immediate and deferred annuities is...

What does "level" refer to in level term insurance?

Variable life insurance is based on what kind of premium?

Under Option B the death benefit includes the annual increase in cash value so that the death benefit...

Annuities are characterized by how they can be paid for which is:

While equity indexed annuities earn higher interest rates than fixed annuities, both types of annuities guarantee a specific minimum interest rate

All paid by the time the insured reaches age 65. The policy endows when the insured turns 100. It is the premium paying period that is limited, not the maturity.

Purest form of term insurance; death benefit remains level, but the premium increases each year with the insured's attained age. In decreasing policies, while the face amount decreases, the premium remains constant throughout the life of the contracts. In level term and increasing term policies, the premium also remains level for the term of the policy. Therefore, in the other types of level policies, the first-year premium would not be different from any other year.

Which policy component decreases in decreasing term insurance?

The payments that that annuitant invests into the variable annuity are invested in the insurer's separated account. The separate account under many annuities provides the annuitant with a dozen or more investment options ranging from "money market funds" to "growth stock funds" to "precious metal funds".

Which type of life insurance policy generates immediate cash value?

A fixed annuity is fixed in the sense that it provides a guaranteed minimum rate of interest and income payments that do not vary from one to the next. The company also guarantees the specified dollar amount for each payment and the length of the payout period.

What are the two components of a universal policy?

Under a variable annuity, the issuing insurance company does not guarantee a minimum interest rate or the benefit payment amounts.

Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?

In comparison to consumer reports, what best describes a unique characteristic of investigate consumer reports?

An insurance contract must contain...

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

What usually includes information about premium amounts, cash values, surrender values, and death benefits for specific policy years?

Within how many days of requesting an an investigative consumer report must an (insurer) notify the consumer in writing that the report will be obtained?

Upon policy delivery, the producer may be required to obtain?

Requirements for life insurance illustrations:

If a (consumer) requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

What is the purpose of a disclosure statement in life insurance policies?

What reports include written and/or oral information regarding a consumer's credit, character, reputation, or habits collected by a reporting agency from employment records, credit reports, and other public sources?

An investor buys a life insurance policy on an elderly person in order to sell it for a life settlement.. what is this an example of?

If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant...

What is a material misrepresentation?

What policy component decreases in decreasing term insurance?

What is the purpose of establishing the target premium for a universal life policy?

A straight life policy has what type of premium?

The policyowner is entitled to policy loans

An agent selling variable annuities must be registered with..

Universal life option A (Level Death Benefit Option) Policy must maintain a specified "corridor" or gap between the cash value and the death benefit, as require by the IRS.

Convertible without proof of insurability up to the full term death benefit.

An individual had just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?

What are the two components of a universal policy?

The policyowner of a Universal Life Policy may skip paying the premium and the policy will not lapse as long as..

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?

The "accumulation period" is the period of time over which the annuitant makes payments (premiums) into an annuity.

When would a 20-pay whole life policy endow?

The type of policy that can be changed from one that does not accumulate cash value to the one that does, is a...

There are several types of whole life polices. The first three, Straight life, limited payment, and single premium, are the basic forms of whole life.

All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?

What license or licenses are required to sell variable life annuities?

An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 index. She would likely purchase a(n)?

Time during which accumulated money is converted into an income stream

The president of a company is starting an annuity and decides that his corporation will be the annuitant. It can happen just as long as..

Have a guaranteed face amount and a level premium for the life of the insured.

An individual has been making periodic payments on an annuity. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. What type of annuity is it?

A man decided to purchase a $100,000 Annually Renewable Term Life Policy to provide additional protection until his children finished college. He discovered that his policy..

Annuities are most commonly used to fund a persons retirement, but they can technically be used to accumulate cash for any reason. Annuities can also be used to..

The policyowner of an adjustable life policy wants to increase the death benefit. In order to to do that, what may happen?

A domestic insurer issuing variable contracts must establish one or more..

Variable life insurance is regulated by..:

Equity Indexed Annuities invest on an aggressive basis in order to yield higher returns. Like a fixed annuity, EIA's have guaranteed minimum interest rates, also less risky than variable annuities, the insurance company also keeps a percentage of the returns.

Why is an equity Indexed annuity considered to be a fixed annuity?

Periodic payments of accumulated funds best describes...

Features of the Indexed whole life policy that are fixed..

All of the following info about a customer must be in determining annuity suitability..

Traditional level premium contract..

All of the following is in regards to a decreasing term policy...

What policy component decreases in decreasing term insurance?

The death protection component of Universal Life Insurance is always..

A return of Premium term life policy is written as what type of term coverage?

A policy will pay the death benefit if the insured dies during the 30-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?

Why is an equity Indexed annuity considered to be a fixed annuity?

The least expensive first year premium payment is found in..

What determines the cash value of a variable life policy?

What policy would have an IRS required corridor or gap between the cash value and the death benefit?

What option for Universal Life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?

Annually Renewable Term policies provide a level death benefit for a premium that?...

What happens to the premium on the children's rider in a life insurance policy?

The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the?

A father purchases a life insurance policy on his teenage daughter and adds the Payor benefit rider. What must be acceptable in order for the ride to be able to waive the payment of premium?

When the policyowner specifies dollar amount in which installments are to be paid, he/she has chosen which settlement option?

According to the Entire Contract provision, a policy must contain...

The can be changed only with the written consent of that beneficiary

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the...

The insurer's surrender the policy at its current cash value. Only any excess of value is taxable as income. Once the policyholder opts for cash surrender, the policy is immediately inactive.

Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner?

If the policyowner, the insured, and the beneficiary under a life insurance policy are three different people, who had the ownership rights?

The dividend option in which the policyowner used dividends to purchase a term policy for one year is referred to as the...

An insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit?

An insured is diagnosed with cancer and needs help paying for her medical treatment

The annual dividend is retained by the company, the interest is credited at a rate specified by the policy, and the policyholder has the right to withdraw the accumulations at any time

All riders that will cause the death benefit to increase?

The policyowner may assign a part of the policy or the entire policy.

In most states, if death results from suicide within a certain period, the insurer is not obligated to pay the death benefit therefore..

The two types of assignments are?

If an insured withdraws a portion of the death benefit by the use of this rider, the benefit payable at death will be reduced by that amount plus..

The consideration clause states that the value offered by the insured...

Required by state law to be included in the policy, and cannot be altered by the policyowner. A table showing the nonforfeiture values for the next 20 years must be included in the policy.

A 40 year old man buys a whole life policy and names his wife as his only beneficiary. His wife dies 10 years later. He never remarried and dies at age 61, leaving 2 grown-up children. Assuming he never changed his beneficiary, the policy proceeds will go to...

Who can request changes in premium payments, face value, loans, and policy plans?

Cash surrender, extended term, reduced paid-up

If an insured receives accelerated death benefits, what is the least amount of the original death benefit that the beneficiary would receive after the insured's death?

The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?

Children's rider are term insurance covering all of the children in the family, including newly born children, and are...

If an insured continually uses the automatic premium loan option to pay the policy premium,

When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?

If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back?

Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean?

An insured had a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use?

Example: the insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive?

An insured pays an annual premium to his insurer. In return, the insurer promised to pay benefits in accordance with the terms of the contract. This is called..

This nonforfeiture option provides coverage for the longest period of time:

The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. What settlement option should the policyowner choose?

What is the other term for the cash payment settlement option?

The consideration clause states that the value offered by the insured is the premium and statements made in the application, so it will include the information about..

When may an insurance company use suicide as a defense against paying a death claim?

A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?

This rider will not cause the death benefit to increase

This pays 2 or 3 times the face amount if death is the result of an accident as defined in the policy and occurs within 90 days of such an accident.

Under the fixed-period option, a specified period of years is selected, and equal installments are paid to the recipient.

May be structured to allow for specific additional amounts of insurance to be purchased at specific ages, dates, and events without proving insurability; however, the coverage is purchased at the insured's attained age and the maximum allowable purchase is specified in the base policy. This rider usually expires at the insured's age of 40.

An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?

A policyowner who is also yeh insured wants to name her husband as the beneficiary of her life policy. She also wished to retain all of the rights of ownership. The policyowner should have her husband named as the..

A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. What will she need to provide for proof of insurability?

An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this?

An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called?

What protects the insured from an unintentional policy lapse due to a nonpayment of premium?

Th rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called?

Which nonforfeiture option has the highest amount of insurance protection?

The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years?

The paid-up addition option uses the dividend to..

The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?

What life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?

An insured misstates her age at the time the life insurance application is taken. This misstatement may result in?

Which provision of a life insurance policy states that the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be use to..

Which nonforfeiture option has the highest amount of insurance protection?

The ownership provision entitles the policyowner to do what?

Which nonforfeiture option provides coverage for the longest period of time?

The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following:

When a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount..

An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?

Which two terms are associated directly with the premium?

An insured had a $10,000 term life policy. The annual premium of $200 was due on February 1; however; the insured failed to pay the premium. He died on February 28. How much would the beneficiary receive from the policy?

May be used to customize a permanent life insurance policy to meet the needs of the policyowner

Mandatory free look in a life insurance policy

If a policy had an automatic premium loan provision, what happens if the insured dies before the loan is paid back?

What determines the amount of each installment paid in a life income option arrangement?

Nonforfeiture values guarantee which policyowner?

Upon policy reinstatement to pay all overdue premiums with interest before the policy is reinstated

The policyowner may assign a part of the policy (collateral assignment) or the entire policy (absolute assignment)

The accumulation at interest option

Regarding the free-look provision, the insurance company

Children's rider are term insurance covering all of the children in the family, including:

What explains the policyowner's right to change beneficiaries, choose options, and receive proceeds of a policy?

What required provision protects against unintentional lapse of the policy?

What policy component contains the company's promise to pay?

What is true about beneficiary designations?

The accelerated benefits provision for an early payment of the death benefit when the insured..

An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement?

The person or interest to whom the policy proceeds will be paid upon the death of the insured. Beneficiaries do not have to have an insurable interest in the policyholder.

Is a mandatory provision that allows the insured to examine a policy, and if dissatisfied for any reason, return the policy for a full refund of any premiums paid

What happens when a policy is surrendered for its cash value?

If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back?

The automatic premium loan provision is activated at the end of the...

What premium payment mode will incur the lowest overall payment?

What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident?

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called?

Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original dies, the payments will continue to a designated beneficiary?

The provision which states that both the policy and a copy of the application form the contract between the policyowner and the insurer is called the..

Life income joint and survivor settlement option guarantees

An insured purchases a policy in 2008 and died in 2013. The insurance company discovers at that time that the insured concealed info during the application process. What can they do?

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

When a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount

Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner?

What is the advantage of reinstating a policy instead of applying for a new one?

What is the term for how frequently a policyowner is required to pay the policy premium?

Which of the following statements about the reinstatement provision is true?

An absolute assignment is a..

What statement about a suicide clause in a life insurance policy is true?

What information will be stated in the consideration clause of a life insurance policy?

Which nonforfeiture option has the highest amount of insurance protection?

What required provision protects against unintentional lapse of the policy?

An insured committed suicide 6 months after his life insurance policy was issued. The insurer will...

The automatic premium loan provision is activated at the end of the...

If an insured continually uses the automatic premium loan option to pay the policy premium..

Regarding the free-look provision, the insurance company..

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

What happens when a children's rider is added to an insured's permanent life insurance policy?

What determines the length of time that benefits will be received under the fixed-amount settlement option?

If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?

What is true about a spouse term rider?

An insured pays $1,200 annually for her life insurance premium. The insured applies this year's $300 worth of accumulated dividends to the next year's' premium, thus reducing it to $900. What option does this describe?

A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?

What is the purpose of a free-look period in insurance policies?

What is true of the cash surrender nonforfeiture option?

What is the purpose of a fixed-period settlement option?

The ownership provision entitles the policyowner to...

What is correct concerning the taxation of premiums in a key-person life insurance policy?

Group life insurance is a single policy written to provide coverage to members of a group. What statement concerning group life is true?

Who is a third-party owner?

What is true regarding a non-qualified retirement plan?

Result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors?

What percentage of a company's employees must take part in a noncontributory group life plan?

A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then...

What is the best reason to purchase life insurance rather than annuities?

Life insurance death proceeds are..

What is true concerning a buy-sell agreement?

What describes the tax advantage of a qualified retirement plan?

What would describe a legal document which would dictate who can buy a deceased partner's share of a business and for what amount?

Cash values can be borrowed at any time

What is true on life settlements?

Number of credits required for fully insured status for Social Security disability benefits?

What employee insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?

What is the name of the insured who enters into a viatical settlement

A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as..

Which insurance arrangement will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner?

An employee quits her job where she has a balance of $10,000 in her qualified plan. If she decides to do a direct transfer from her plan to a traditional IRA, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer?

All the following are business uses of life insurance:

If I retirement plan or annuity is "qualified," this means...

Who is the owner and who is the beneficiary on a key person life insurance policy?

In a life settlement contract, whom does the life settlement broker represent?

The premiums paid by the employer in a business life insurance policy are...

All of the following are true of a key person insurance..

Follow the following are true of the federal tax advantages of a qualified plan

For an individual who is not covered by an employer sponsored plan, IRA contributions are...

What is correct concerning a non contributory group plan:

What is correct concerning the taxation of premiums in a key-person life insurance policy?

To attain currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters?

What is not an example of a business use of life insurance?

And employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his...

All of the following would be different between qualified and nonqualified retirement plans:

An employee has group life insurance through her employer. After five years, she decides to leave the company and work independently. How could she obtain an individual policy?

Death benefits payable to a beneficiary under a life insurance policy are generally

The president of a manufacturing company has offered one of the company's officers a special individual annuity plan that is unavailable to lower-echelon employees. This plan would be funded with before-tax corporate dollars, and it does not meet government approval standards. This annuity plan is...

What is true regarding taxation of accelerated benefits under a life insurance policy?

Group life insurance is a single policy written to provide coverage to members of a group. What statement is correct?

A key person insurance policy can pay for what?

And employee quits her job where she has a balance of $10,000 in her qualified plan. The balance is paid out directly to the employee in order for her to move the funds to a new account. If she decides to roll over her plan to a traditional IRA, how much will she receive from the plan administrator and how long does she have to complete the tax free-roll over?

An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with upcoming medical expenses. What option could the insured utilize?

When an employee terminates coverage under group insurance policy, coverage continues in force for how long?

If a life insurance policy develops cash no you faster than a seven-pay whole life contract, it is?

What are examples of a business use of life insurance?

Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?

Who is the owner and who is the beneficiary on a key person life insurance policy?

Individuals covered under the policy receive a certificate of insurance, certificate holders may convert coverage to an individual policy without evidence of insurability, and amount of coverage is determined according to non discriminatory rules.

Employees must receive a minimum of $5,000 in annual compensation, no other qualified plan can be used, no more than 100 employees.

If an injured worker has earned 40 quarters of coverage, the worker's status under Social Security disability is?

Keogh plan, Roth IRA, 401(k)

Who can make a fully deductible contribution to a traditional IRA?

If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a?

Employer contributions are not included in the employee's gross income, SEP's allow the employer to make annual tax-deductible contributions of the 25% of an employee's earned income, SEP's have a higher tax deductible contribution limit than an IRA.

In which instance would the premium be tax deductible?

What type of insurance policy would perform the function of cash accumulation?

In life insurance policies, cash value increases

A key person insurance policy can pay for which of the following?

If $100,000 of life insurance proceeds were used in a settlement option, which paid $13,000 per year for ten years, which of the following would be taxable annually?

The premiums paid by the employer in a business life insurance policy are

And employee has group life insurance through her employer. After 5 years, she decides to leave the company and work independently. How can she obtain an individual policy?

Term used to name the no taxes return of unused premiums?

An employee quits his job on May 15 and doesn't convert his group life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. What best describes what will happen?

Minimum number of credits required for partially insured status for Social Security disability benefits is

In a direct rollover, how is the money transferred from one plan to the new one?

What's true of a qualified plan?

Old-age and retirement benefits, disability benefits, death benefits

And employee is insured under her employers group life plan. If she terminates her group coverage, what is true?

A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as

Concerning the taxation of premiums in a key- person life insurance policy is:

Internal revenue code provision that specifically provides for an individual retirement plan for public school teachers is a(n)

Example of liquidity in a life insurance contract

Who is the main purpose of the seven-pay test?

In order to qualify for conversion from a group life policy to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?

If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?

Which of the following is an eligibility requirement for all Social Security disability income benefits?

The advantage of qualified plans to employers is

All of the following statements concerning an employer sponsored non-qualified retirement plan are true as follows:

Two attorneys at law and operate their practice as a partnership. They want to start a program through their practice that will provide retirement benefits for themselves and three employees. They would likely choose...

Corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then

Employer contributions made to a qualified plan..

There is no limitation on the number of key employee plans in force at any one time, the employer is the owner, Payor and beneficiary of the policy, the key employee is the insured.

A tax-sheltered annuity is a special tax-favored retirement plan available to

Taxation on dividends in participating policies?

Business uses of life insurance

What is the official name for the Social Security program?

To attain currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters?

What is the required percentage of participants in a contributory group plan?

A corporation is the owner and beneficiary of the key person life policy. If the corporation collect the policy benefit, then

What is the primary purpose of a 401(k) plan?

What statement is true concerning buy-sell agreements?

What term means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors?

Earnings grow tax-deferred, contributions are not currently taxable, it can discriminate in benefits and selecting participants

For a retirement plan to be qualified, it must be designed for the benefit of

A 60 year old participate in a 401(k) plan takes a distribution in rolled it over to it I already within 60 days. What is true?

All of the following concerning a non-contributory group plan is true:

What is an IRS qualified retirement program for the self-employed?

All of the following would be different between qualified and nonqualified retirement plans:

What is true regarding taxation of accelerated benefits under life insurance policy?

How are contributions to a tax-sheltered annuity treated with regards to taxation?

An employer has sponsored a qualified retirement plan for its employees where the employees where the employer will contribute money wherever a profit is realized. What is this called?

Employer contributions are tax deductible as ordinary business expense, funds accumulate on tax-deferred basis, employee and employer contributions are not counted as income to the employee for income tax purposes

They are tax free to terminally ill insured

Buy-sell agreements are normally funded with a life insurance policy

The plan must be communicated to all employees, the plan must be for the exclusive benefits of the employees and their beneficiaries, the plan must be permanent, written and legally binding

If a company has a simplified employee pension plan, what type of plant is it?

Death benefits payable to a beneficiary under a life insurance policy are generally

If an insured surrenders his life insurance policy, what is true regarding the cash value of the policy?

For an individual who is NOT covered by an employer-sponsored plan, IRA contributions are

Amount of coverage is determined according to nondiscriminatory rules, individuals covered, under the policy receive a certificate of insurance, certificate holders may convert coverage to an individual policy without evidence of insurability

A key person insurance policy can pay for which of the following?

An individual has been diagnosed with Alzheimer's disease. He's insured under a life insurance policy with the accelerated benefits rider. Which of the following is a true statement regarding taxation of the accelerated benefits?

When a beneficiary receives payments consisting of both principal and interest portions, which part are taxable as income?

They could be sold for an amount greater than the current cash value, they involve insurance policies with large face amounts, they could be use for a key person coverage

And insured has a modified endowment contract. He wants to withdraw some money in order to pay medical bills. Which of the following is true?

CEO of a private corporation

Unless revoked or suspended how long does a producers license remain in effect in Tennessee?

A temporary insurance license maybe issued without examination and all of the following:

A candidate for an accident and health producer's license must complete how many hours of prelicensing education?

A candidate for life insurance producer's license must complete how many hours of prelicensing education?

An insurer devises in a determination strategy in order to quarter a large portion of the insurance market. What best describes this practice?

All the following would be considered an unfair and deceptive practice

What is the minimum required age for an insurance producer in this state?

Which of the following is an example of a producer being involved in an unfair trade practices of rebating?

Which of the following persons is required to hold a producer license?

And insurance producer license may be renewed at the producer has paid the applicable fees, submitted the renewal form to the commissioner, and..

Having a client in inducement to a sale not stated in the policy is an unlawful practice known as?

In order to enforce the insurance code the commissioner has the power to conduct which of the following?

In order to receive a commission, a person is required to...

How many accounts must to Tennessee life and health insurance Guaranty association maintain?

A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. This is an example of...

When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty of?

Which of the following acts would not get an insurance producer terminated "for cause"?

Which of the following would be required to be licensed as an insurance producer?

Which statement best defines an insurance producer?

A person required to be licensed under the laws of the state to sell, solicit, or negotiate insurance is known as

Which of the following would be considered false advertising?

In order to enforce the insurance code the commissioner has the power to conduct which of the following?

The regulation of the insurance industry primarily rest with

An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of?

Which of the following is true regarding pre-licensing education requirements for insurance producers in the state?

Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as

Who is personally liable for all contracts of insurance unlawfully made with in Tennessee on behalf of an unauthorized insurer?

The purpose of the Tennessee Guaranty Association is to

If an individual licensee's violation of the entrance code was known or should have been down by one or more of the partners, officers, or managers of the agency, what could happen to agency?

If a resident insurance producer moves from Tennessee to another state, he/she must file a change of address and provide certification from the new resident state within how many days of the change of legal resident?

If an insurance company has published a brochure that in accurately portrays the advantages of a particular insurance policy. What is this an example of?

Which of the following would be required to complete pre-licensing education?

In which of the following situations is it legal to limit coverage based on marital status?

Which of the following best describes the unfair trade practices of defamation?

Which of the following may obtain a producer's license, but may not sell, solicit, or negotiate a contract of insurance in Tennessee?

How many credit hours of excess continuing education or producers allowed to carryover to the next renewal cycle?

If you insurance company makes a statement that it's policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered?

If the producer continues to violate the entrance code, I knew so penalty will be assessed every?

As a condition for renewal of their licenses, how many hours of continuing education required for all resident and nonresident insurance producers?

The requirement that an agent not co-mingle insurance monies with their own fund is known as?

Upon receipt of notice of appointment, the commissioner must verify the insurance producer is eligible for appointment within how many days?

To appoint a producer as it's agent, the appointing insurer must file a notice of appointment with the commissioner within how many days from the date the agency contract is executed?

Rebating is an unfair trade practices and is regulated by law all of the following would be considered to be rebating except

When twin brothers applied for life insurance from company a, the company found that while neither of them smoke and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is considered?

any person acting as an insurance producer without a valid license may be fined up to

Which of the following activities is not performed by an insurance producer?

All the following could be considered rebates if offered to an insured in the sale of insurance except?

Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?

For the purpose of making an investigation, the commissioner does have the power to do all the following:

And in sure publishes intimidating brochures at portray the insurer's competition as financially and professionally unstable. Which of the following best describes the act?

And insurance producer may not act as an agent for an insurer unless he/she has become which of the following??

And any controversy between the insured or the insured's beneficiary and the insured that arises from the application for insurance of any policy issued a connection with the application, the producer is considered to be the agent and which of the following?

Candidates for either a property license or a casualty license must complete how many hours of pre-licensing education?

A producer in tensional he violated insurance statues. Ultimately, the commissioner determined that there were a total of 25 separate violations. What is the total, monetary penalty this producer can expect to receive?

All the following are true regarding rebates except?

Which of the following provisions would NOT be found in Term Life Insurance?

How long must an insurer keep a copy of an authorized form in its records?

Which of the following documents must be provided to the policyowner or applicant during policy replacement?

Rules of replacement apply to all of the following:

An insurer must present a buyers guide and policy summary prior to accepting the applicant's initial premium, unless the policy contains an unconditional refund provision lasting at least how many days?

Assuming that a policy does not contain an unconditional refund provision of at least 10 days, when must a Buyer's Guide and policy summary be provided?

What must be presented before an applicant submits a premium?

The protocol for replacement does not apply to which of the following situations?

If a producer discusses policy dividends in a sales presentation, what statement must the producer also make?

Which road apply for the agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

Life insurance cost indexes are our only useful when comparing a minimum of how many similar policies?

Which of the following would NOT have a policy loans provision?

During replacement of life insurance, or replacing ensure musky which of the following?

must ensure a pair that's benefit claim after receiving the product of death?