NEW YORK STATE LIFE INSURANCE SERIES 17-51 EXAM VERIFIED QUESTIONS
AND ANSWERS FOR EASY EXAM PASS
Dividends are paid out without income tax because they are seen as a return of
unearned premiums.
24-ANSWER Benefit of Accelerated Death
The prognosis for a doctor must be ___ months or less ahead of time.
The highest authority for regulating insurance is the individual states. Unless
expressly specified by federal law, no federal regulation may interfere.
ANSWER Premiums are credited to the insurer's general account, and fixed
annuity payments are flat. Fixed annuities pay out a fixed level income benefit
payout, and the insurer bears the investment risk.
Fixed interest rate guarantees and an interest rate adjustment factor that can
enable the surrender value to change in response to market conditions are
elements of the Market Value Adjustment Annuity (ANSWER).
ANSWER Viatical Settlement life expectancy is two years or fewer.
Pre-need - ANSWER ____ is a form of coverage with a minimal face amount
that is usually obtained to cover the insured's burial expenditures.
The beneficiary of a _____ death benefit will get the face amount plus the cash
value on the date of death, according to Option B-ANSWER.
Option A-ANSWER offers a level death benefit in addition to paying the
policy's face value. The company's risk falls as its cash value rises. An amount
at risk must be included in a universal life policy. The death benefit must rise in
order to cover the amount at risk if the cash value becomes close to the face
amount. This minimal distance between the death benefit and the cash value is
known as the "risk corridor." This insurance corridor is automatic and does not
necessitate insurability. By doing this, the policy is kept from maturing too
soon. pays a flat death payment in addition to the policy's face value. The
company's risk falls as its cash value rises. An amount at risk must be included
, in a universal life policy. The death benefit must rise in order to cover the
amount at risk if the cash value becomes close to the face amount. This minimal
distance between the death benefit and the cash value is known as the "risk
corridor." This insurance corridor is automatic and does not necessitate
insurability. By doing this, the policy is kept from maturing too soon.
Fair Credit Reporting Act (FCRA) - ANSWER An insurance firm must adhere
to the __________ while acquiring information about an application from third
parties.
Entity Purchase Plan-ANSWER The company signs a contract to buy the
deceased's stake in the company.
Conditional- ANSWER A contract is said to be a(n) __________ when both
parties are required to fulfill specific obligations and adhere to specific conduct
guidelines in order for it to be enforceable.
Life insurance premiums for buy-sell agreements are: - ANSWER Not
deductible, and the proceeds are exempt from income tax.
ANSWER: Credit life insurance typically has a decreasing term, meaning that
the amount of coverage decreases as the obligation does.
The insurance benefit cannot be greater than the entire amount of debt.
The insurance is either a type of group insurance given to a creditor that covers
creditors or a type of individual coverage on the life of a debtor.
Whole Life Indeterminate Premium - ANSWER Modifiable Premiums
Nonforfeiture choices: Reduced Paid-Up, Extended Term, and Cash Surrender
are the three nonforfeiture choices.
They give a cash value policy more flexibility.
They shield the policyholder from losing all benefits in the event that the policy
expires or is terminated.
One-year: If all other things are equal, the lowest term life insurance policy in
the first year's yearly premium
Income tax is owed when: ANSWER Interest received on dividends held in the
insurer's account
AND ANSWERS FOR EASY EXAM PASS
Dividends are paid out without income tax because they are seen as a return of
unearned premiums.
24-ANSWER Benefit of Accelerated Death
The prognosis for a doctor must be ___ months or less ahead of time.
The highest authority for regulating insurance is the individual states. Unless
expressly specified by federal law, no federal regulation may interfere.
ANSWER Premiums are credited to the insurer's general account, and fixed
annuity payments are flat. Fixed annuities pay out a fixed level income benefit
payout, and the insurer bears the investment risk.
Fixed interest rate guarantees and an interest rate adjustment factor that can
enable the surrender value to change in response to market conditions are
elements of the Market Value Adjustment Annuity (ANSWER).
ANSWER Viatical Settlement life expectancy is two years or fewer.
Pre-need - ANSWER ____ is a form of coverage with a minimal face amount
that is usually obtained to cover the insured's burial expenditures.
The beneficiary of a _____ death benefit will get the face amount plus the cash
value on the date of death, according to Option B-ANSWER.
Option A-ANSWER offers a level death benefit in addition to paying the
policy's face value. The company's risk falls as its cash value rises. An amount
at risk must be included in a universal life policy. The death benefit must rise in
order to cover the amount at risk if the cash value becomes close to the face
amount. This minimal distance between the death benefit and the cash value is
known as the "risk corridor." This insurance corridor is automatic and does not
necessitate insurability. By doing this, the policy is kept from maturing too
soon. pays a flat death payment in addition to the policy's face value. The
company's risk falls as its cash value rises. An amount at risk must be included
, in a universal life policy. The death benefit must rise in order to cover the
amount at risk if the cash value becomes close to the face amount. This minimal
distance between the death benefit and the cash value is known as the "risk
corridor." This insurance corridor is automatic and does not necessitate
insurability. By doing this, the policy is kept from maturing too soon.
Fair Credit Reporting Act (FCRA) - ANSWER An insurance firm must adhere
to the __________ while acquiring information about an application from third
parties.
Entity Purchase Plan-ANSWER The company signs a contract to buy the
deceased's stake in the company.
Conditional- ANSWER A contract is said to be a(n) __________ when both
parties are required to fulfill specific obligations and adhere to specific conduct
guidelines in order for it to be enforceable.
Life insurance premiums for buy-sell agreements are: - ANSWER Not
deductible, and the proceeds are exempt from income tax.
ANSWER: Credit life insurance typically has a decreasing term, meaning that
the amount of coverage decreases as the obligation does.
The insurance benefit cannot be greater than the entire amount of debt.
The insurance is either a type of group insurance given to a creditor that covers
creditors or a type of individual coverage on the life of a debtor.
Whole Life Indeterminate Premium - ANSWER Modifiable Premiums
Nonforfeiture choices: Reduced Paid-Up, Extended Term, and Cash Surrender
are the three nonforfeiture choices.
They give a cash value policy more flexibility.
They shield the policyholder from losing all benefits in the event that the policy
expires or is terminated.
One-year: If all other things are equal, the lowest term life insurance policy in
the first year's yearly premium
Income tax is owed when: ANSWER Interest received on dividends held in the
insurer's account
