LA LIFE INSURANCE SERIES 101
EXAM
If an annuity uses units instead of dollars to determine the value of the
policy, then it is a(n) _________ annuity. - ANSWERS-Variable
Statements made by an applicant for a Health insurance policy that
the applicant says are true to the best of his/her knowledge are known
as: - ANSWERS-Representations
The field underwriter is the __________ and is not a determiner of
insureability. - ANSWERS-Producer
The Medical Information Bureau (MIB) is formed by: - ANSWERS-
Insurance Companies
Once issued, the application becomes part of the ___________, when
attached. - ANSWERS-Entire Contract
The _______ Clause is the insurance company's promise to pay the
policy's death benefit to the named beneficiary after receiving proof
of death of the insured as long as the policy is in force. - ANSWERS-
Insuring
,All of the following are factors for a producer to consider when
determining annuity suitability for a client, EXCEPT: - ANSWERS-
Commission
A Life insurance applicant wants a combination of savings and
insurance protection with guarantees. If the applicant is willing to pay
premiums only until the age of 65, at which time the policy is fully
paid up which of the following should he/she purchase? -
ANSWERS-Limited Pay Whole Life - Age to age 65
Which of the following is not a form of permanent Life insurance
coverage? - ANSWERS-Term to age
K has a 10,000.00 traditional Whole Life Policy with a outstanding
loan of 1000.00 and a 5% interest charge. At the end of the first year
of the loan, K did not pay the loan interest. What is the result of K's
actions? - ANSWERS-K's new loan balance is $1050.00.
( pays balance plus interest)
_________ refers to the jurisdiction where an insurer was formed or
incorporated. - ANSWERS-Domicile
Unless an exception applies, life insurance proceeds are income
taxable in which of the following circumstances? - ANSWERS-When
a transfer of ownership takes place while the insured was alive.
A ________ plan calls for the business to purchase Life Insurance
policies on each of the business owners. - ANSWERS-Entity
, The Law of Agency states that a person or entity who acts on behalf
of another person, company, or government is known as the
__________. - ANSWERS-Agent
Generally speaking, Straight Whole Life is classified as which of the
following? - ANSWERS-Ordinary
An client wants coverage for himself as well as coverage for his wife
and children all under one policy at an affordable price. Which of the
following would best meet the need? - ANSWERS-Family Rider
Roth IRA's and Traditional IRA's have only one of the following in
common.Which is? - ANSWERS-Catch up contributions for those age
50 or older.
When an annuitant annuitizes their annuity that has a cost basis in it,
the amount of the income benefit payment subject to tax is determined
by using the: - ANSWERS-Exclusion Ratio
How are employer paid premiums on a group Life Insurance plan
treated for tax purposes? - ANSWERS-As an ordinary and necessary
business expense.
If a Life Insurance policy does not pass the ___ - pay test, it will be
deemed a MEC. - ANSWERS-7
EXAM
If an annuity uses units instead of dollars to determine the value of the
policy, then it is a(n) _________ annuity. - ANSWERS-Variable
Statements made by an applicant for a Health insurance policy that
the applicant says are true to the best of his/her knowledge are known
as: - ANSWERS-Representations
The field underwriter is the __________ and is not a determiner of
insureability. - ANSWERS-Producer
The Medical Information Bureau (MIB) is formed by: - ANSWERS-
Insurance Companies
Once issued, the application becomes part of the ___________, when
attached. - ANSWERS-Entire Contract
The _______ Clause is the insurance company's promise to pay the
policy's death benefit to the named beneficiary after receiving proof
of death of the insured as long as the policy is in force. - ANSWERS-
Insuring
,All of the following are factors for a producer to consider when
determining annuity suitability for a client, EXCEPT: - ANSWERS-
Commission
A Life insurance applicant wants a combination of savings and
insurance protection with guarantees. If the applicant is willing to pay
premiums only until the age of 65, at which time the policy is fully
paid up which of the following should he/she purchase? -
ANSWERS-Limited Pay Whole Life - Age to age 65
Which of the following is not a form of permanent Life insurance
coverage? - ANSWERS-Term to age
K has a 10,000.00 traditional Whole Life Policy with a outstanding
loan of 1000.00 and a 5% interest charge. At the end of the first year
of the loan, K did not pay the loan interest. What is the result of K's
actions? - ANSWERS-K's new loan balance is $1050.00.
( pays balance plus interest)
_________ refers to the jurisdiction where an insurer was formed or
incorporated. - ANSWERS-Domicile
Unless an exception applies, life insurance proceeds are income
taxable in which of the following circumstances? - ANSWERS-When
a transfer of ownership takes place while the insured was alive.
A ________ plan calls for the business to purchase Life Insurance
policies on each of the business owners. - ANSWERS-Entity
, The Law of Agency states that a person or entity who acts on behalf
of another person, company, or government is known as the
__________. - ANSWERS-Agent
Generally speaking, Straight Whole Life is classified as which of the
following? - ANSWERS-Ordinary
An client wants coverage for himself as well as coverage for his wife
and children all under one policy at an affordable price. Which of the
following would best meet the need? - ANSWERS-Family Rider
Roth IRA's and Traditional IRA's have only one of the following in
common.Which is? - ANSWERS-Catch up contributions for those age
50 or older.
When an annuitant annuitizes their annuity that has a cost basis in it,
the amount of the income benefit payment subject to tax is determined
by using the: - ANSWERS-Exclusion Ratio
How are employer paid premiums on a group Life Insurance plan
treated for tax purposes? - ANSWERS-As an ordinary and necessary
business expense.
If a Life Insurance policy does not pass the ___ - pay test, it will be
deemed a MEC. - ANSWERS-7
