Texas Life and Health Exam with Study Questions and Answers

Texas Life and Health Exam with Study Questions and Answers When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called a(n) AKey person policy. BFraternal association. CAleatory contract. DExecutive bonus. - ANSWER ANSWER- D. Executive bonus Which of the following is NOT true of life settlements? AThey could be used for a key person coverage. BThey could be sold for an amount greater than the current cash value. CThey involve insurance policies with large face amounts. DThe seller must be terminally ill. - ANSWER ANSWER- D. The seller must be terminally ill. In a direct rollover, how is the money transferred from one plan to the new one? AFrom the participant to the new plan BFrom the original plan to the original custodian CFrom trustee to trustee DFrom trustee to the participant - ANSWER ANSWER- C. From trustee to trustee All of the following are examples of third-party ownership of a life insurance policy EXCEPT AA company purchases a life insurance policy on their manager, who is an important part of the operation.