- Who is normally considered to be the owner of a 403B tax sheltered annuity?The 403B custodianThe financial institutionThe employerThe employee
- A life insurance policy would be considered a wagering contract without:Insurable interestPremium paymentAgent solicitationConstructive Delivery
- And employee requested that the balance of her 401(k) account be sent directly to her in one lump sum. Upon receipt of the distribution, she immediately has the funds rolled over into an IRA. What is the tax consequence of the distribution sent to this employee?-distribution is subject to capital gains tax-distribution is subject to ordinary income tax-distribution is subject to a tax penalty-distribution is subject to federal income tax withholding
- A term life insurance policy matures:-Upon endowment of the contract-upon death of the insured-when the cash value equals the death benefit-upon the insured's death during the term of the policy
- A cost of living rider gives the insured:Tax incentivesMonthly incomeDecreasing premiumsAdditional death benefits
- Q purchases a $500,000 life insurance policy and pays $900 in premiums are ready for six months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the following insurance contract features?AleatoryAdhesionUnilateralConsideration
- K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable?Increasing decreasing adjustable level
- The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called a(n)Entire contract provisionConsideration clauseInsuring agreementAssignment agreement
- What does a 401(k) plan generally provide to his participants?Tax-free distributionsSalary deferral distributionsSalary deferral contributionsA defined retirement benefit
- Which of these needs is satisfied by Adjustable Life insurance?-insured's needs for level premiums-insured's needs for a flexible premium-insured's needs for flexible nonforfeiture option-insured's needs for level death benefit
- All of these statements about the Waiver of Premium provision are correct EXCEPT-A waiting period must pass before becoming eligible for benefits-waiver of premium is available on both permanent and term insurance policies-insured must be eligible for Social Security disability for a claim to be accepted-insured must be totally disabled to qualify
- Which of these terms accurately defines an underwriters assessment of information on a life insurance application?Risk classificationWarranty reviewInsurable interestInspection report
- All of the following statements regarding a tax sheltered annuity are true except-income derived from the TSA is received income tax free-TSA's are available to public school employees-contributions to the TSA or tax deductible-interest earned by TSA is tax deferred
- The payments on Q's annuity are no less than $250 quarterly. Which of the following annuities does Q own?immediate fixedQuarterly flexibleFlexible installment deferredAdjustable deferred
- What determines the full amount of Social Security retirement benefits a qualified individual is entitled to receive?Primary insurance amountTotal taxes paid into FICANumber of dependentsState of residence
- Credit life insurance is typically issued with which of the following types of coverage?Annual renewable termDecreasing termIndividual whole lifeGroup term
- A limited pay life policy has:Graded death benefitsNo cash valuePremium payments limited to a specific number of yearsPremium payments that are paid till age 100
- What kind of life insurance product covers children under their parent's policy?Family maintenance riderTerm riderFamily income riderPayor benefit
- Insurance policies are considered aleatory contracts because:-they are take it or leave it contract-both parties consent to the contract-performance is conditioned upon a future occurrence-contract is voidable upon proof of fraud
- All of these are considered sources of underwriting information about an applicant EXCEPT:Inspection reportCredit reportRating servicesMedical information bureau