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MIS2502 FINAL EXAM LATEST WITH ACTUAL
QUESTIONS AND CORRECT VERIFIED ANSWERS
ALREADY GRADED A+ 100% GUARANTEED
PASS!
Jane works for a company that allows employee
contributions under a 401(k) plan. When will Jane
become fully vested in her plan contributions? -
.....ANSWER ...✔✔ immediately//While employer
contributions to a qualified plan can be subject to a
vesting schedule, participants are always fully vested in
their own contributions.
Agents must act in the best interests of applicants and
insureds. What does this require them to do? -
.....ANSWER ...✔✔ give all important information
about a proposed policy//Agents must act in the
applicant's or insured's best interests at all times. This
means that agents must give all important information
about a proposed policy. Also, they cannot misrepresent
the terms or conditions of a proposed policy.
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What does a viatical settlement allow? - .....ANSWER
...✔✔ It allows a chronically or terminally ill insured
to gain a sum of money that is needed to pay medical
expenses or to enhance the quality of life.//A viatical
settlement allows a chronically or terminally ill insured to
gain a sum of money that might be needed to pay
medical expenses or to enhance quality of life.
If an employer/employee group offers group life
insurance on a contributory basis, what percentage of
the group must enroll? - .....ANSWER ...✔✔ At least
75 percent of the group must enroll in the plan//If an
employer/employee group life insurance plan is
contributory, 75 percent of the group must enroll in the
plan. If the plan is non-contributory, 100 percent of the
group must enroll.
Which of the following is NOT a life insurance premium?
- .....ANSWER ...✔✔ competitors' rates//Actuaries
base life insurance premiums on three basic factors:
mortality (a charge), interest (a credit), and expenses (a
charge).
In calculating their mortality charges, life insurers today
generally use: - .....ANSWER ...✔✔ the 2001 CSO
table//The mortality factor is drawn from mortality
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statistics compiled by the National Association of
Insurance Commissioners (NAIC) into a set of rates called
the Commissioners Standard Ordinary (CSO) table.
Policies issued since 2009 are required to base their
mortality charges on the 2001 CSO table.
All of the following are standard life insurance policy
nonforfeiture options EXCEPT: - .....ANSWER ...✔✔
accumulate at interest option//This is a policy dividend
option in which declared dividends are left with the
insurer to accumulate interest on the policyowner's
behalf.
Which of the following most correctly describes the
nonforfeiture option(s) available with universal life
insurance? - .....ANSWER ...✔✔ surrender the policy
for its cash value or stop paying premiums and continue
coverage as long as the cash value will support
it//Universal life policies do not contain the standard
nonforfeiture options. Instead, the policyowner can
either surrender the policy for its cash value or continue
coverage with no further premium payments, in which
case coverage will last for as long as the cash value is
able to support the policy's monthly mortality and
expense charge deductions.
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James wants to convert his $150,000 traditional IRA to
a Roth IRA. What best describes the tax treatment for
the Roth conversion? - .....ANSWER ...✔✔ The
converted funds are taxed, but Roth IRA earnings and
distribution will be tax free.//The $150,000 from the
traditional IRA has been deferred so it will be taxed
upon conversion. However, as long as James holds the
new Roth IRA for at least five years and is older than
59', distributions from the Roth IRA will be tax free.
Under variable life insurance plans, policy loans can be
as high as what percent of the cash value? - .....ANSWER
...✔✔ 75 to 90 percent//Policy loans under
traditional whole life insurance plans can be as high as
100 percent of the cash value, but with variable life
insurance the maximum loan amount is something less
than the full cash value (e.g., 75 to 90 percent of the
cash value), less any debt currently outstanding against
the policy.
Under which nonforfeiture option does permanent life
insurance continue in force with no further need for
premiums? - .....ANSWER ...✔✔ reduced paid-up
option//A paid-up policy under the reduced paid-up
option requires no further premiums (nor can any be
paid). The paid-up policy retains a cash value that will
continue to grow throughout the life of the policy.
MIS2502 FINAL EXAM LATEST WITH ACTUAL
QUESTIONS AND CORRECT VERIFIED ANSWERS
ALREADY GRADED A+ 100% GUARANTEED
PASS!
Jane works for a company that allows employee
contributions under a 401(k) plan. When will Jane
become fully vested in her plan contributions? -
.....ANSWER ...✔✔ immediately//While employer
contributions to a qualified plan can be subject to a
vesting schedule, participants are always fully vested in
their own contributions.
Agents must act in the best interests of applicants and
insureds. What does this require them to do? -
.....ANSWER ...✔✔ give all important information
about a proposed policy//Agents must act in the
applicant's or insured's best interests at all times. This
means that agents must give all important information
about a proposed policy. Also, they cannot misrepresent
the terms or conditions of a proposed policy.
,2|Page
What does a viatical settlement allow? - .....ANSWER
...✔✔ It allows a chronically or terminally ill insured
to gain a sum of money that is needed to pay medical
expenses or to enhance the quality of life.//A viatical
settlement allows a chronically or terminally ill insured to
gain a sum of money that might be needed to pay
medical expenses or to enhance quality of life.
If an employer/employee group offers group life
insurance on a contributory basis, what percentage of
the group must enroll? - .....ANSWER ...✔✔ At least
75 percent of the group must enroll in the plan//If an
employer/employee group life insurance plan is
contributory, 75 percent of the group must enroll in the
plan. If the plan is non-contributory, 100 percent of the
group must enroll.
Which of the following is NOT a life insurance premium?
- .....ANSWER ...✔✔ competitors' rates//Actuaries
base life insurance premiums on three basic factors:
mortality (a charge), interest (a credit), and expenses (a
charge).
In calculating their mortality charges, life insurers today
generally use: - .....ANSWER ...✔✔ the 2001 CSO
table//The mortality factor is drawn from mortality
,3|Page
statistics compiled by the National Association of
Insurance Commissioners (NAIC) into a set of rates called
the Commissioners Standard Ordinary (CSO) table.
Policies issued since 2009 are required to base their
mortality charges on the 2001 CSO table.
All of the following are standard life insurance policy
nonforfeiture options EXCEPT: - .....ANSWER ...✔✔
accumulate at interest option//This is a policy dividend
option in which declared dividends are left with the
insurer to accumulate interest on the policyowner's
behalf.
Which of the following most correctly describes the
nonforfeiture option(s) available with universal life
insurance? - .....ANSWER ...✔✔ surrender the policy
for its cash value or stop paying premiums and continue
coverage as long as the cash value will support
it//Universal life policies do not contain the standard
nonforfeiture options. Instead, the policyowner can
either surrender the policy for its cash value or continue
coverage with no further premium payments, in which
case coverage will last for as long as the cash value is
able to support the policy's monthly mortality and
expense charge deductions.
, 4|Page
James wants to convert his $150,000 traditional IRA to
a Roth IRA. What best describes the tax treatment for
the Roth conversion? - .....ANSWER ...✔✔ The
converted funds are taxed, but Roth IRA earnings and
distribution will be tax free.//The $150,000 from the
traditional IRA has been deferred so it will be taxed
upon conversion. However, as long as James holds the
new Roth IRA for at least five years and is older than
59', distributions from the Roth IRA will be tax free.
Under variable life insurance plans, policy loans can be
as high as what percent of the cash value? - .....ANSWER
...✔✔ 75 to 90 percent//Policy loans under
traditional whole life insurance plans can be as high as
100 percent of the cash value, but with variable life
insurance the maximum loan amount is something less
than the full cash value (e.g., 75 to 90 percent of the
cash value), less any debt currently outstanding against
the policy.
Under which nonforfeiture option does permanent life
insurance continue in force with no further need for
premiums? - .....ANSWER ...✔✔ reduced paid-up
option//A paid-up policy under the reduced paid-up
option requires no further premiums (nor can any be
paid). The paid-up policy retains a cash value that will
continue to grow throughout the life of the policy.
