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1
Q

The primary purpose of an annuity is

A

Income for life

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2
Q

What retirement plan is deemed to be qualified

A

Defined benefit plan

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3
Q

To be fully insured under social security, one needs how many quarters of coverage

A

40

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4
Q

What dies the conversion clause provide a terminated employee under a group life plan

A

Coverage for 31 days

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5
Q

When must owners of IRAs begin to receive payments from their retirement funds

A

April 1 following age 70 1/2

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6
Q

At what age can IRA owners begin to receive payments and not incur a tax penalty

A

59 1/2

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7
Q

Pension plan Benefits can be determined by

A

Based on years of service
Expressed as fixed dollar amount
Based on a percentage of compensation

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8
Q

What are the annuity benefit factors

A

Age of annuitant
Amount of proceeds
Interest rate

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9
Q

The MIBs main purpose is

A

Prevent fraud

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10
Q

Interim term policies have a max benefit period of how long

A

11 months

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11
Q

In a single premium Immediate annuity one must start taking payments within how many months

A

12

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12
Q

J gets fired March 10th, dies March 25th, under his group policy what would the insurers pay

A

Full face value

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13
Q

An annuity is purchased for 10,000, the expected return is $20,000, what is taxable if it pays $300 a month

A

$150

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14
Q

In a variable annuity who regulates the separate account

A

SEC

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15
Q

M cashes in his policy he paid $6,000 in premium, he received $7,200 in cash surrender, how much is taxable

A

$1,200

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16
Q

What signatures must sign the application

A

Insured
Owner
Agent

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17
Q

In a fixed annuity, during the annuity period interest rates rises. What happens to payout

A

Payout stays the same (life)

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18
Q

Which of the following promises full income for the lifetime of two annuitants

A

A joint and survivor life annuity

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19
Q

The policy owner possesses complete control of the policy except

A

An irrevocable beneficiary has been named on the policy

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20
Q

The gross premium for life insurance policy is made up of

A

Expense loading
Interest
Mortality costs

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21
Q

A plan that meets requirements of the federal government in order to receive favorable tax treatment is

A

Qualified

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22
Q

A deferred compensation plan is not

A

Tax free

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23
Q

A joint and full survivor settlement option on an annuity will pay until

A

The second insured dies

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24
Q

If the employer pays the whole premium on a group policy the plan is called

A

Non contributory

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25
In Florida how many people are needed to qualify for group life insurance
No minimum
26
The annuitant wishes to have their annuity pay until their death, with no further payments to anyone. What type of annuity should they get
Straight life annuity
27
Under a SEP, the max contribution that can be made on an employees behalf is
$40,000
28
What report reflects an applicants mode of living, and exposure to abnormal hazards
Inspection report
29
A policy owner commits suicide 2 1/2 years after the policy is issued. What will the company pay
Face amount
30
Insurance underwriting is the process of
Selection of risk Classifying of risk Rating of risk
31
What report reflects an applicants mode if living, and exposure to abnormal hazards
Inspection report
32
What is the disadvantage of a fixed annuity
Loss of purchasing power
33
Where ate franchise life plans used
Groups too small for group
34
A family Oman uses which type of insurance further head of the family
Whole life
35
Before payout begins, accumulation units must be converted to
Annuity units
36
The incontestable clause is two years from when
Issue date
37
What will pay the policy owner an amount that does not exceed the guaranteed cash value
Policy loan
38
In order to maximize policy death benefits for a beneficiary which dividend option should be selected
Paid up additions
39
The max amount of insurance for dependents can be what percent of employees coverage
50%
40
Life insurance is considered what type of contract
Valued contract
41
The type of hazard that arises from an attitude or state of mind that causes indifference to loss is
Morale
42
The minimum number of employees needed by a corporation to set up a group variable annuity is
25
43
Who all are considered to have an insurable interest
Employer Spouse Business partner
44
What is always an exclusion clause in a life policy
Suicide
45
What policy is paid up early and endows at age 100
20- pay life
46
All of the following can be used to determine group benefits excepts
Age
47
What can be used to determine group benefits
Earnings Employment position Flat benefit
48
An insurer can delay payment of a policy loan for
6 months
49
Morale hazard is characterized by
Lifestyle
50
The type of insurance that would not make a good retirement vehicle
Term
51
The insurances cancels her policy, but wants coverage for remainder of her life she would choose a
Reduced paid up?????
52
The agents report is found where in the application
Part 3
53
The primary insurance amount PIA is equal to
Full workers retirement at 65
54
Who regulates retirement plans in Florida
ERISA
55
Legal reserves show on the balance sheet as
Future liabilities
56
What is found on the front page of all insurance policies
Insuring clause
57
What best describe the fifth dividend option
One year term
58
Stock insurance companies usually sell what type of policies
Non-participating
59
What type of policies do mutual companies usually sell
Participating
60
Name the dividend options
Paid up additions One year term Cash
61
Under a group policy the termination clause states the employee
Has 31 days to convert to individual policy
62
What are the necessities for a risk to be insurable
A reasonably predictable loss A definite loss Exposure of large group
63
What describes a 20 year limited pay life policy
Payment for 20 years and endows at 100
64
To calculate the tax free portion of each annuity payment, you would use
Exclusion ratio
65
Most group life plans use which type of insurance
Annual renewable term
66
When can an immediate annuity begin the benefit payment phase
As soon as it is purchased
67
An annuity owner received $600 a month, and the value of each annuity unit is $3, how many units did he receive monthly
$200
68
The authority that've granted by way if the agents contract is
Expressed
69
Which feature of an insurance contract states that only one party had any further obligation.
Unilateral
70
How soon must cash surrender values become available to insured in an ordinary life policy
3 years
71
T has a policy in which the cash value increased to a point where the corridor was utilized
Universal option 1
72
Which feature on a life insurance policy allows an insured to stop paying premiums and takes paid up policy with a face amount less than that of the original policy
Non forfeiture option
73
List the 3 types of hazards
Moral-alcoholism Morale -indifference to loss Physical-medical history, blindness, deafness.
74
4 ways to handle risk
Avoidance Reduction Retention Transfer
75
What is a peril
Cause of loss
76
Risk in insurance terminology refers to
Uncertainty of financial loss
77
All of the following are elements of insurable risk except
The loss must be unpredictable
78
Characteristics of moral hazards are
Stealing, smoking, drinking, and being drunk.
79
Characteristics of morale hazard includes
Jay walking, careless
80
What does domestic insurer mean.
Incorporated in the state they ate doing business in ( Florida)
81
What does foreign insurer mean
Incorporated in another state
82
What does alien insurer mean
Operating in another country
83
Define a value contract
Pays a specific amount in the event of loss
84
Define indemnity
Reimburses or pays the amount of the loss (health insurance)
85
Define expressed authority
Powers specifically stated in contract
86
Define implied authority
Not specifically stated in the contract, but is assumed authority needed to conduct business
87
Define apparent authority
The appearance of a relationship between the agent and principal based on words or actions
88
Name the term policies
Level-stats the same. Decreasing-mortgage and credit insurance. Increasing-increase at specific times... Cost of living rider Annual renewable- premiums increase...renews each year without proof of insurability.
89
The entire contract includes what
Policy Copy of application Riders
90
Define insuring clause
Insurers promise to pay benefits Explains the scope of coverage
91
Define consideration clause
Policy owner agrees to pay premium
92
Explained reinstatement clause
3 years to do 3 things Payback all premiums plus interest Payback any loans Proof of insurability
93
Identify the non forfeiture options
Reduced paid up Extended term-automatic option Cash-cash surrender
94
Identify the dividend options
``` Cash Reduce premium Accumulation at interest Paid up additions One year term ```
95
Name the types of riders
``` Guaranteed insurability Waiver of premium Automatic premium loan Payor provision Accidental death Return I'd premium Ryder COLA Other insurers riders ```
96
Name the dividend options
``` ( CRAPO) Cash payment Reduce premium Accumulate at interest Paid up additions One year term ```
97
Where Is the insuring clause found in a policy
On the cover page
98
How long is free look
14 days
99
When does free look begin
At physical policy delivery
100
What does automatic premium loan provide
Insurer can pay insured premium from cash value
101
What are the 3 parts of a life insurance application
Part I-General Part II- Medical Part III- Agent report
102
What is the purpose of the MIB
Hold down insurance cost
103
The max fixed policy loan interest that an insurance company can charge in Florida is
10 percent
104
What plan is used when only the employee contributes
Non contributory | 100%
105
The max fixed policy loan interest that an insurance company can charge in Florida is
10 percent
106
What plan is used when only the employee contributes
Non contributory | 100%
107
What part of the insured is the payment of premium
Consideration

Life Insurance (1 decks)

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