Life Insurance Certification Exam

Life Insurance Certification Exam The income period when a surviving spouse doesnot qualify for social security survivor or retirement benefits is called A) the retirement period B.) the preretirement "blackout" period C.) the family dependency period D.) the "in-between period - B Which of the following settlement options produces benefits that are tax exempt to the Life Insurance beneficiaries? A.) fixed- income benefits B.) Fixed period benefits C.) interest only payments D.) lump-sum payments - A nontaxable trans action where a cash value Life Insurance policy is converted into an annuity is known as A.) a modified endowment contract (MEC) B.) a rollover C.) a 1035 exchange D.) a pension enhancement - C The tendency of poor risks to seek insurance and get coverage more often than average risks isnown as A.) discrimination B.) adhesion C.) adverse selection D.) Insurance - C What is a Life Insurance policy dividend? A.) a refunds of a portion of the premium B) interest paid to the policy owner on the cash value accumulation of a permanent insurance policy c) that portion of the premium not used to pay death claims D) the stockholders return on an investment in the company - B If desdemona is insured by a life policy with a face amount the insurer t of $250,000, but which has an outstanding loan of $ policy 10,000 at her death the insurer A) will subtract the amount of the outstanding loan and pay $ 240,000 to the beneficiary B) does not have to pay the death claim until the loanhas been repaid C) must pay the beneficiary and continue to collect the $$10,000 outstanding plan D) will pay the entire $250,000 to The beneficiaryand continue to collect interest on the loan until it is repaid - A Which of the following best describes the annuitization period? A). The time which payments are made to the annuitant, B) the time during which premiums are paid to fund the annuity C) the principle factor is determining the annuity premium D) the process determining the annuity premium - A The type of premium for-term life innsurance that remains the same throughout the policy period is A) the graded premium B) the renewable premium C) the modified premium D) the level premium - D