State Exam Simulator - 90 Questions Weighted Exam Questions & Answers

In an individual retirement account (IRA), rollover contributions are - ANSWER-unlimited by dollar amount An example of rebating would be - ANSWER-splitting the commission with the buyer on a sale of insurance Premature IRA distributions are subject to a penalty tax of - ANSWER-10% Under the Law of Agency, the principal is considered to be - ANSWER-the insurer Which of these statements regarding the extended term insurance nonforfeiture option in a life policy is accurate? - ANSWER-The premium to purchase the coverage comes from the policy's cash value Insurable interest involves what assumption? - ANSWER-One person benefits from another person's continued life Death benefits from a life insurance policy are normally considered to be - ANSWER-exempt from federal income tax How long do most states allow an insurance company to delay the payment of a cash surrender under the Delayed Payment provision? - ANSWER-6 months A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid - ANSWER-mandatory income tax withholding on the amount transferred Which of the following entities does NOT establish regulations for variable insurance products? - ANSWER-State attorney general When testing for the Human Immunodeficiency Virus (HIV), Virginia law requires a consent form - ANSWER-that discloses who may receive a copy of the results If replacement was involved in the sale of an insurance policy, a producer must provide a replacement notice no later than the - ANSWER-application date Viatical settlement proceeds may be subect to the claims of - ANSWER-creditors Which statement regarding universal life insurance is correct - ANSWER-Cash value accumulations have a guaranteed minimum interest rate The owner's cost basis for a non-qualified deferred annuity is typically the same as the - ANSWER-total premiums paid A signed good health statement may be requested by a life producer at the time of - ANSWER-policy delivery Which statement is INCORRECT about the interest-only settlement option in a life insurance policy? - ANSWER-Interest on proceeds must be paid by the beneficiary