214 LICENSE (BUSINESS INSURANCE) EXAM
QUESTIONS AND ACCURATE SOLUTIONS
RATED AND VERIFIED A
A variable annuity has which of the following characteristics?
Underlying equity investments.
The type of annuity that can be purchased with one monetary deposit is
called a(n)
Immediate Annuity
K is an annuitant currently receiving payments. If she were to die before
receiving payments equal to the correct value, a beneficiary will continue
receiving payments until an amount equal to the contract value has been
paid. This is called a(n):
Installment Refund Annuity
T, age 70, withdraws cash from a profit-sharing plan and purchases a
Straight Life Annuity. What will this transaction provide?
Income that cannot be outlived by the owner.
T has an annuity that guarantees and income payments for the rest of his
life. The contract also guarantees that if T dies before receiving payments
for 20 years, the remaining payments will be paid to his son for the
balance of the 20 years. What type of annuity is this?
Life Annuity with Period Certain
W is a 39-year old female who just purchased an annuity to provide
income for life starting at age 60. All of these would be acceptable annuity
choices EXCEPT a(n)
Immediate Annuity
,The payments on Q's annuity are no less than $250 quarterly. Which of
the following annuities does Q own?
Flexible Installment Deferred
N, age 50, recently bought an annuity that will pay a guaranteed
$2,000/month at age 70 for life. What type of annuity did N purchase?
Fixed Deferred
S recently received a $500,000 lump sum retirement buyout from her
employer. She would like to buy an annuity that will immediately furnish
her with a guaranteed income for life. What type of annuity is best suited
for her situation?
Single Premium
P, age 50, purchased an annuity that P will fund with $500/ month for 15
years. The annuity will then pay P retirement payments after the 15 years.
Which type of annuity did P purchase?
Deferred Annuity
All of these are considered benefits under SSN except for:
Unemployment
What determines the full amount of Social Security retirement benefits a
qualified individual is entitled to receive?
PIA or Primary Insurance Amount
Which of these is not a source of funding for Social Security benefits?
The Fed. Gov.
What is Old Age and Survivors Health Insurance (OASDHI) also known
as?
Social Security
Upon delivery of a rated insurance policy, the Producer must obtain each
of the following EXCEPT:
, Signed HIPAA disclosure
From what authority derives the requirement that an insurance application
contains a disclosure stating that an investigative consumer report may be
obtained on an applicant?
Fair Credit Reporting Act
Upon Policy Delivery, a signed statement of good health is requested from
the applicant. Why would this be necessary?
The initial premium was NOT submitted with the application.
P is a producer who notices 5 questions on a life application were not
answered. What actions should P take?
Set up a meeting with the applicant to answer the remaining questions.
Which of these factors do NOT play a role in the underwriting of a life
insurance policy?
Marital Status
applies for a life insurance policy on herself and submits the initial
premium with the application. She is given a receipt by the agent stating
that coverage begins immediately if the application is approved. What
kind of receipt was used?
Conditional
K is an agent who takes an application for individual life insurance and
accepts a check from the client. He submits the application and check to the
insurance company, however the check was never signed by the
applicant. If the application is approved, when will coverage be effective?
The date the agent delivered the policy, collected the initial premium, and
obtained a good health statement from the insured
A $20,000 life insurance policy application is completed, however the
producer does not collect the initial premium. At what point does the
coverage go into effect?
QUESTIONS AND ACCURATE SOLUTIONS
RATED AND VERIFIED A
A variable annuity has which of the following characteristics?
Underlying equity investments.
The type of annuity that can be purchased with one monetary deposit is
called a(n)
Immediate Annuity
K is an annuitant currently receiving payments. If she were to die before
receiving payments equal to the correct value, a beneficiary will continue
receiving payments until an amount equal to the contract value has been
paid. This is called a(n):
Installment Refund Annuity
T, age 70, withdraws cash from a profit-sharing plan and purchases a
Straight Life Annuity. What will this transaction provide?
Income that cannot be outlived by the owner.
T has an annuity that guarantees and income payments for the rest of his
life. The contract also guarantees that if T dies before receiving payments
for 20 years, the remaining payments will be paid to his son for the
balance of the 20 years. What type of annuity is this?
Life Annuity with Period Certain
W is a 39-year old female who just purchased an annuity to provide
income for life starting at age 60. All of these would be acceptable annuity
choices EXCEPT a(n)
Immediate Annuity
,The payments on Q's annuity are no less than $250 quarterly. Which of
the following annuities does Q own?
Flexible Installment Deferred
N, age 50, recently bought an annuity that will pay a guaranteed
$2,000/month at age 70 for life. What type of annuity did N purchase?
Fixed Deferred
S recently received a $500,000 lump sum retirement buyout from her
employer. She would like to buy an annuity that will immediately furnish
her with a guaranteed income for life. What type of annuity is best suited
for her situation?
Single Premium
P, age 50, purchased an annuity that P will fund with $500/ month for 15
years. The annuity will then pay P retirement payments after the 15 years.
Which type of annuity did P purchase?
Deferred Annuity
All of these are considered benefits under SSN except for:
Unemployment
What determines the full amount of Social Security retirement benefits a
qualified individual is entitled to receive?
PIA or Primary Insurance Amount
Which of these is not a source of funding for Social Security benefits?
The Fed. Gov.
What is Old Age and Survivors Health Insurance (OASDHI) also known
as?
Social Security
Upon delivery of a rated insurance policy, the Producer must obtain each
of the following EXCEPT:
, Signed HIPAA disclosure
From what authority derives the requirement that an insurance application
contains a disclosure stating that an investigative consumer report may be
obtained on an applicant?
Fair Credit Reporting Act
Upon Policy Delivery, a signed statement of good health is requested from
the applicant. Why would this be necessary?
The initial premium was NOT submitted with the application.
P is a producer who notices 5 questions on a life application were not
answered. What actions should P take?
Set up a meeting with the applicant to answer the remaining questions.
Which of these factors do NOT play a role in the underwriting of a life
insurance policy?
Marital Status
applies for a life insurance policy on herself and submits the initial
premium with the application. She is given a receipt by the agent stating
that coverage begins immediately if the application is approved. What
kind of receipt was used?
Conditional
K is an agent who takes an application for individual life insurance and
accepts a check from the client. He submits the application and check to the
insurance company, however the check was never signed by the
applicant. If the application is approved, when will coverage be effective?
The date the agent delivered the policy, collected the initial premium, and
obtained a good health statement from the insured
A $20,000 life insurance policy application is completed, however the
producer does not collect the initial premium. At what point does the
coverage go into effect?
