Insurance Questions

Which of these is not a type of agent authority?ExpressImpliedPrincipalApparent

A producer MUST leave a buyer's guide with an applicant for which type of policy?Group life insuranceAnnuityUniversal life insuranceCredit life insurance

A life policy with a death benefit and cash value that can fluctuate according to the performance of its underlying investment portfolio is referred to as:Adjustable lifeGraded premium lifeVariable lifeModified whole life

Which statement is true regarding a variable whole life policy?-A minimum guaranteed death benefit is provided-it is a combination of an endowment and an increasing term policy-it's premiums and benefits are variable-it has guaranteed dividends

Whole life insurance is sometimes referred to as straight life what does the word straight indicate when using this phrase?-The incontestable period-The ability to borrow against the cash value-The grace period-The duration of premium payments

A retirement plan that sets aside part of the community's net income for distributions to qualified employees is called a:Rollover plan403B planProfit sharing planSalary reduction plan

How are surrender charges deducted in a life policy with a rear end loaded provision?Deducted from the death benefitDeducted when the policy is discontinuedDeducted from the policies cash valueDeducted when assigned to another policy owner

In order to sell a (n)____ Life policy, a producer is required to register with financial Industry Regulatory Authority (FINRA).Variable adjustable straight term

The Cash value in a(n) _____ life policy may fluctuate to reflect changing assumptions regarding mortality cost, interest, and expense factors.UniversalGradedTermEndowment

Additional coverage can be added to a Whole Life policy by adding a(n):Payor riderAccelerated benefit riderDecreasing term riderAutomatic premium loan rider

Which provision allows the policy owner to change a term life policy to a permanent one without providing proof of good health?Modification conversion exchange adjustable

The Combination of Whole Life and _____ Term insurance is referred to as a Family Income PolicyDecreasing universal variable level

Which of these are not an example of a nonforfeiture option?Extended termReduced paid upCash surrenderLife income

What is considered a valid reason for small businesses to ensure the lives of its major shareholders?-To provide an income for the surviving dependents-reduce the companies tax liability-to pay for final expenses-fund a buy sell agreement

S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a minimum level of risk. Which product should S be advised to purchase?Equity index insuranceEndowment Graded whole life policyReturn of premium policy

Which of the following information is NOT required to be included in a whole life policy?Policy's loan interest ratePolicy's guaranteed dividend tablePolicy's premiumPolicy's cash value table

A life policy that contains a monthly mortality charge as well as self-directed investment choices is calledJoint life policyEndowmentVariable universal life policyUniversal life policy

An individual working part time has an annual income of $25,000 if this individual has an IRA what is the maximum deductible IRA contribution allowable?No deduction allowed$6000$5000$4000

Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance? -Premiums are normally not tax deductible-Cash dividends are normally not taxed-Entire cash surrender value is taxable-Proceeds are received tax free if there is a named beneficiary

J is issued a Life Insurance policy with a death benefit of $100,000. She pays $600 per year in premium for the first 5 years. The premium then increases to $900 per year in the sixth year, and remains level thereafter. The policy's death benefit also remains at $100,000. Which type of Life Insurance policy is this?EndowmentGraded premium lifeStraight lifeModified Premium life