Life Insurance Exam Questions IDAHO and Answers 100% CORRECT!!

How long is the grace period for an individual life insurance policy? - ANSWER-1 month In this state the owner gets a "free look" of a specified number of days from - ANSWER-Delivery of the policy Which of the following would be likely to establish a SEP? - ANSWER-Smalls employers If a soliciting producer suspects that there could be misrepresentation on the part of the applicant for insurance, what must the producer do? - ANSWER-inform the insurance company Cash Value guarantees in a whole life policy are called - ANSWER-NONFORFEITURE VALUES. Because permanent life insurance policies have cash values, there are certain guarantees that are built into the policy that cannot be forfeited by the policyowner. These guarantees (known as nonforfeiture values) are required by state law to be included in the policy. A table showing the nonforfeiture values must be included in the policy for a minimum period of 20 years. The policyowner has options as to how to exercise nonforfeiture values. Which of the following statements concerning the Medical Information Bureau is correct? - ANSWER-4. The Medical Information Bureau assists underwriters in evaluating and classifying risks. Which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insured's death was caused by an accident as defined in the policy? - ANSWER-ACCIDENTAL DEATH RIDER. The Accidental Death Rider pays some multiple of the face amount if death is the result of an accident as defined in the policy. If a retirement plan or annuity is qualified, this means - ANSWER-3. It satisfies IRS requirements for favorable tax treatment.