214 License Questions And Answers Latest Top Score.

214 License Questions And Answers Latest Top Score. Which rof rthe rfollowing rdescribes ra rparticipating rinsurance rpolicy? r- r rcorrect ranswer. r r rPolicyowners rare rentitled rto rreceive rdividends At rwhat rpoint rmust ra rlife rinsurance rapplicant rbe rinformed rof rtheir rrights rthat rfall runder rthe rFair rCredit rReporting rAct? r- r rcorrect ranswer. r r rUpon rcompletion rof rthe rapplication Dividends rpayable rto ra rpolicyowner rare: r- r rcorrect ranswer. r r rDeclared rby rthe rinsurance rcompany. At rwhat rpoint rdoes ran rinformal ragreement rbecome ra rbinding rcontract? r- r rcorrect ranswer. r r rWhen rconsideration ris rprovided rby rone rof rthe rparties rto rthe rcontract When rthird-party rownership ris rinvolved, rapplicants rwho ralso rhappen rto rbe rthe rstated rprimary rbeneficiary rare rrequired rto rhave r- r rcorrect ranswer. r r rInsurable rinterest rin rthe rproposed rinsured Which rof rthe rfollowing rarrangements rallows rone rto rbypass rinsurable rinterest rlaws? r- r rcorrect ranswer. r r r(STOLI) ror rInvestor rOriginated rLife rInsurance Taking rreceipt rof rpremiums rand rholding rthem rfor rthe rinsurance rcompany ris ran rexample rof r- r rcorrect ranswer. r r rFiduciary rResponsibility A rpolicy rof radhesion rcan ronly rbe rmodified rby rwhom? r- r rcorrect ranswer. r r rThe rInsurance rCompany The rexchange rof runequal rvalues rreflects: r- r rcorrect ranswer. r r rAleatory Life rand rhealth rinsurance rpolicies rare r- r rcorrect ranswer. r r rUnilateral rContracts r(one rmakes rpromise, rother rcan ronly raccept rby rperformance The rconsideration rclause rof rinsurance rcontract rincludes r- r rcorrect ranswer. r r rThe rschedule rand ramount rof rpremium rpayments A rlife rinsurance rarrangement rwhich rcircumvents rinsurable rinterest rvalues ris rcalled r- r rcorrect ranswer. r r rInvestor rOriginated rLife rInsurance r(IOLI) Who rmakes rthe rlegally renforceable rpromises rin ra runilateral rcontract? r- r rcorrect ranswer. r r rThe rInsurance rCompany A rlife rinsurance rpolicy rwould rbe rconsidered ra rwagering rcontract rWITHOUT: r- r rcorrect ranswer. r r rInsurable rInterest A rlife rinsurance rpolicy rthat rprovides ra rpolicyowner rwith rcash rvalue ralong rwith ra rlevel rface ramount ris rcalled: r- r rcorrect ranswer. r r rWhole rLife rPolicy Who rbenefits rin rInvestor-Originated rLife rInsurance r(IOLI) rwhen rthe rinsured rdies? r- r rcorrect ranswer. r r rthe rPolicyowner(investor) K rpurchased ra rLife rinsurance rpolicy rin r1986 rwhich rpaid r10% rinterest rin rthe rearly ryears rof rthe rpolicy. rTwenty ryears rafter rthe rpurchase, rshe rreceived ra rnotice rfrom rthe rinsurer rstating rthat rthe rpolicy rwill rsoon rterminate runless ra rmuch-higher rpremium ris rpaid rbecause rof rfalling rinterest rrates. rThis rtype rof rpolicy ris rknown ras: r- r rcorrect ranswer. r r rUniversal rLife rPolicy Which rof rthese rwould rbe rconsidered ra rLimited-Pay-Life rpolicy? r- r rcorrect ranswer. r r rLife rPaid rUp rat rAge r70 K ris rlooking rto rpurchase rRenewable rTerm rinsurance. rWhich rof rthese rtypes rof rTerm rinsurance rmay rbe rrenewable? r- r rcorrect ranswer. r r rLevel rTerm rPolicy r(pays rsame rdeath rbenefit rif rinsured rdies rany rtime rduring rpolicy) A runiversal rlife rpolicy ris rsometimes rreferred rto ras ran runbundled rLife rPolicy rbecause rthe rowner rcan rsee rthe rinterest rearned, rcost rof rinsurance, rand r- r rcorrect ranswer. r r rExpense rCharges What rtype rof rinsurance roffers rpermanent rlife rcoverage rwith rpremiums rthat rare rpayable rfor rlife? r- r rcorrect ranswer. r r rWhole rLife rPolicy Which rprovision rallows rthe rpolicyowner rto rchange ra rterm rlife rpolicy rto ra rpermanent rone rwithout rproviding rproof rof rgood rhealth? r- r rcorrect ranswer. r r rConversion When ris rthe rface ramount rof ra rWhole rLife rpolicy rpaid? r- r rcorrect ranswer. r r rWhen rthe rinsured rdies, ror rthe rpolicy's rmaturity, rwhichever rcomes rfirst! Additional rcoverage rcan rbe radded rto ra rWhole rLife rpolicy rby radding ra(n) r- r rcorrect ranswer. r r rDecreasing rTerm rRider When ra rlife rpolicy rexceeds rcertain rIRS rtable rvalues, rthe rresult rwould rcreate rwhich rof rthe rfollowing? r- r rcorrect ranswer. r r rModified rEndowment rContract r(MEC) K rpays ron ra r$20,000 r20-Year rEndowment rpolicy rfor r10 ryears rand rdies rfrom ran rautomobile raccident. rHow rmuch rwill rthe rinsurance rcompany rpay rthe rbeneficiary? r- r rcorrect ranswer. r r r$20,000 rdeath rbenefit. Which rof rthe rfollowing rcombination rof rplans ris rdesigned rto rprotect ran rinsured rfrom ran runpaid rmortgage rbalance rupon rpremature rdeath? r- r rcorrect ranswer. r r rJoint rLife rPolicy Which rpolicy rrequires ran ragent rto rregister rwith rthe rNational rAssociation rof rSecurities rDealers r(NASD) rbefore rselling? r- r rcorrect ranswer. r r rVariable rLife Variable rWhole rLife rPolicy r- r rcorrect ranswer. r r rboth ran rinsurance rand rsecurities rproduct Under ra rGraded rPremium rWhole rLife rPolicy r- r rcorrect ranswer. r r rThe rpremium rincreases reach ryear rduring rthe rearly ryears rof rthe rcontract rand rremains rthe rsame rafter rthat rtime P ris rlooking rto rpurchase ra rlife rinsurance rpolicy rthat rwill rpay ra rstated rmonthly rincome rto rhis rbeneficiaries rfor r20 ryears rafter rhe rdies rand ra rlump rsum rof r$20,000 rat rthe rend rof rthat r20 ryear rperiod. rWhat rtype rof rpolicy rshould rP rpurchase? r- r rcorrect ranswer. r r rFamily rMaintenance rPolicy Term rlife rpolicies rthat rhave rthe rability rto rbe rconverted rto rpermanent rcoverage rmay rdo rso rduring ra rspecific rtime rperiod. rThis rconversion rperiod r- r rcorrect ranswer. r r rVaries raccording rto rthe rcontract The rmost rimportant rfactor rto rconsider rwhen rdetermining rwhether rto rconvert rterm rinsurance rat rthe rinsured's rattained rage ror rthe rinsured's roriginal rage ris r- r rcorrect ranswer. r r rthe rcost STOLI ris rwhen ra rperson rpurchases rlife rinsurance ronly rto rthen rsell rit rto r- r rcorrect ranswer. r r ra rthird rparty rwith rno rinsurable rinterest The rAccidental rDeath rand rDismembering r(AD&D) rprovision rin ra rlife rinsurance rpolicy rwould rpay radditional rbenefits rif rthe rinsured: r- r rcorrect ranswer. r r rIs rblinded rin ran raccident. K rowns ra rwhole rlife rpolicy. rIf rK rwants ran rincreasing rdeath rbenefit rto rprotect ragainst rinflation, rwhich rdividend roption rshould rshe rchoose. r- r rcorrect ranswer. r r rPaid rUp rOption In ra rlife rinsurance rpolicy, rwhich rprovision rstates rwho rmay rselect rpolicy roptions, rdesignate rand rname ra rbeneficiary, rand rbe rthe rrecipient rof rany rfinancial rbenefits rfrom rthe rpolicy r- r rcorrect ranswer. r r rOwner's rRights Which rof rthese rprovisions rrequire rproof rof rinsurability rafter ra rpolicy rhas rlapsed? r- r rcorrect ranswer. r r rReinstatement The r____ rhas rthe rright rto rchange rthe rbeneficiary ron ra rlife rinsurance rpolicy. r- r rcorrect ranswer. r r rPolicyowner Suicide rcommitted rin rcontestable rperiod r- r rcorrect ranswer. r r rClaims rare rdenied runder rthe rSuicide rclause rof rthe rpolicy D rowns ra rWhole rlife rpolicy rthat rwas rpurchased r10 ryears rago. rIf rpremium rpayments rsuddenly rstop rand rD rtakes rno radditional raction, rwhich rNonforfeiture roption rwill rthe rinsurer rlikely rproceed rwith? r- r rcorrect ranswer. r r rExtended rTerm r(allows rpolicyowner rto ruse rthe rcash rvalue rto rpurchase ra rterm rinsurance rpolicy rwith ra rdeath rbenefit requal rto rthat rof rthe roriginal rwhole rlife rpolicy. P rpurchases ra r$50,000 rwhole rlife rinsurance rpolicy rin r2005. rOne rof rthe rquestions ron rthe rapplication rasks rif rP rengages rin rscuba rdiving, rto rwhich rP ranswers r"No". rThe rpolicy ris rthen rissued rwith rno rscuba rexclusions. rIn r2010, rP rtakes rup rscuba rdiving rand rdies rin ra rscuba-related raccident rin r2011. rWhat rwill rthe rinsurer rpay rto rP's rbeneficiary? r- r rcorrect ranswer. r r r$50,000 rminus rany routstanding rpolicy rloans An rinsured ris rpast rdue ron rhis rlife rinsurance rpremium, rbut ris rstill rwithin rthe rGrace rPeriod. rWhat rwill rthe rbeneficiary rreceive rif rthe rinsured rdies rduring rthis rGrace rPeriod? r- r rcorrect ranswer. r r rFull rface ramount rminus rany rpast rdue rpremiums Which rof rthese ractions ris rtaken rwhen ra rpolicyowner ruses ra rLife rInsurance rpolicy ras rcollateral rfor ra rbank rloan? r- r rcorrect ranswer. r r rCollateral rAssignment The r____ ris rauthorized rto rassign ra rlife rinsurance rpolicy ras rcollateral rfor ra rloan. r- r rcorrect ranswer. r r rPolicyowner What raction rcan ra rpolicyowner rtake rif ran rapplication rfor ra rbank rloan rrequires rcollateral? r- r rcorrect ranswer. r r rAssign rpolicy rownership rto rthe rbank In ra rlife rinsurance rcontract, ran rinsurance rcompany's rpromise rto rpay rstated rbenefits ris rcalled rthe r: r- r rcorrect ranswer. r r rInsuring rClause Which rof rthe rfollowing rnonforfeiture roptions roffers rthe rhighest rdeath rbenefit? r- r rcorrect ranswer. r r rExtended rTerm rOption The raccelerated rdeath rbenefit rprovision rin ra rlife rinsurance rpolicy ris ralso rknown ras ra r- r rcorrect ranswer. r r rLiving rBenefit A rterm rlife rrider roffers rthe rinsured r- r rcorrect ranswer. r r rAdditional rLife rCoverage The rautomatic rpremium rloan rprovision ris rdesigned rto r- r rcorrect ranswer. r r rAvoid ra rpolicy rlapse D ris rthe rpolicyowner rand rinsured rfor ra r$50,000 rlife rinsurance rpolicy. rThe rbeneficiary ris rD's rwife. rD rand rhis rwife rdivorce rand rD rremarries, rtransferring rownership rof rhis rpolicy rto rhis rnew rwife. rIf rD rdies rwithout rmaking rany rfurther rchanges, rto rwhom rwill rthe rpolicy rproceeds rbe rpaid rto? r- r rcorrect ranswer. r r rEx rWife Which rstatement rregarding rthe rMisstatement rof rAge rprovision ris rconsidered rto rbe rtrue? r- r rcorrect ranswer. r r rCoverage rwill rbe radjusted rto rreflect rthe rinsured's rtrue rage rif ra rmisstatement rof rage ris rdiscovered A rpolicyowners rrights rare rlimited runder rwhich rbeneficiary rdesignation? r- r rcorrect ranswer. r r rIrrevocable Which rof rthese rstatements ris rINCORRECT rregarding rthe rfederal rincome rtax rtreatment rof rlife rinsurance? r- r rcorrect ranswer. r r rEntire rcash rsurrender rvalue ris rtaxable What ris rthe runderlying rconcept rregarding rlevel rpremiums? r- r rcorrect ranswer. r r rthe rearly ryears rare rcharged rmore rthan rwhat ris rneeded, rthen rlevels rout. Which rsettlement roptions rpays ra rstated ramount rto ran rannuitant rbut rno rresidual rvalue rto ra rbeneficiary? r- r rcorrect ranswer. r r rLife rIncome Who rhas rthe rright rto rchange ra rrevocable rbeneficiary? r- r rcorrect ranswer. r r rPolicyowner Which rof rthe rfollowing rstatements ris rCORRECT rregarding rthe rtax rtreatment rof ra rlump-sum rpayment rpaid rto ra rlife rinsurance rpolicy's rprimary rbeneficiary? r- r rcorrect ranswer. r r rAll rproceeds rare rincome rtax rfree rin rthe ryear rthey rare rreceived. C ris rtrying rto rdetermine rwhether rto rconvert rher rconvertible rterm rlife rpolicy rto rwhole rlife rinsurance rusing rher roriginal rage ror rattained rage. rWhich rfactor rwould raffect rher rdecision rthe rmost? r- r rcorrect ranswer. r r rthe rcost K ris rthe rinsured rand rP ris rthe rsole rbeneficiary ron ra rlife rinsurance rpolicy. rBoth rare rinvolved rin ra rfatal raccident rwhere rK rdies rbefore rP. rUnder rthe rCommon rDisaster rprovision, rwhich