RMIN 4000 UGA TEST 3 Exam
Questions and Answers Graded A+
Amount Needed Human Life Value Approach - Correct answer-Present value of
the family's share of the deceased breadwinner's future earnings.
Needs Approach - Correct answer-Amount needed depends on the financial needs
that must be met if a family head should die
Ordinary Whole Life - Correct answer-Life time protection to age 121
premiums are payable for lifetime
etc
Limited Pay Whole Life - Correct answer-Only have to pay for a certain period 10-
20-30
Variable Life Insurance - Correct answer-fixed-premium policy in which cash
values and death benefit varies according to investment experience
Policy holder has input on how cash value is invested
Universal Life - Correct answer-Flexible premium policy ( lifetime protection )
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,No lapse guarantee if the premium is paid
Cash value accumulates on premiums net of mortality charges
Insurers can increase expenses at any point in time
Group Coverage - Correct answer-Not always available
Employer could discontinue benefit
Entire Contract Clause - Correct answer-The Policy and application constitutes the
entire contract.
Grace Period - Correct answer-Period to pay overdue premiums
Reinstatement Clause - Correct answer-Terms if policy lapses for non-payment
Misstatement of Age or Sex Clause - Correct answer-Payment at death adjusted to
amount of coverage premiums paid would have purchased
Settlement Options (Interest Option) - Correct answer-Interest paid to beneficiary
periodically
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, Fixed period option - Correct answer-Payment over a fixed period of time at a
guaranteed interest rate
NAIC - Correct answer-Life Insurance Model Regulation
Taxation - Correct answer-Generally income tax free for the beneficiary
Financial strength of Insurer - Correct answer-AM Best
Fitch
Moody's
Standard & Poors
Annuities - Correct answer-A periodic payment that continues for a fixed period of
time or for the duration of a designated life or lives
IRA - Correct answer-Allows workers with taxable compensation to make annual
contributions to a retirement plan up to certain limits and receive favorable
income-tax treatment on such contributions
Traditional IRA - Correct answer-Must have taxable income
Must be under the age of 72
withdraw w/o penalty at age 59 1/2
Certain hardship exceptions prior to age 59 1/2
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
Questions and Answers Graded A+
Amount Needed Human Life Value Approach - Correct answer-Present value of
the family's share of the deceased breadwinner's future earnings.
Needs Approach - Correct answer-Amount needed depends on the financial needs
that must be met if a family head should die
Ordinary Whole Life - Correct answer-Life time protection to age 121
premiums are payable for lifetime
etc
Limited Pay Whole Life - Correct answer-Only have to pay for a certain period 10-
20-30
Variable Life Insurance - Correct answer-fixed-premium policy in which cash
values and death benefit varies according to investment experience
Policy holder has input on how cash value is invested
Universal Life - Correct answer-Flexible premium policy ( lifetime protection )
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,No lapse guarantee if the premium is paid
Cash value accumulates on premiums net of mortality charges
Insurers can increase expenses at any point in time
Group Coverage - Correct answer-Not always available
Employer could discontinue benefit
Entire Contract Clause - Correct answer-The Policy and application constitutes the
entire contract.
Grace Period - Correct answer-Period to pay overdue premiums
Reinstatement Clause - Correct answer-Terms if policy lapses for non-payment
Misstatement of Age or Sex Clause - Correct answer-Payment at death adjusted to
amount of coverage premiums paid would have purchased
Settlement Options (Interest Option) - Correct answer-Interest paid to beneficiary
periodically
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, Fixed period option - Correct answer-Payment over a fixed period of time at a
guaranteed interest rate
NAIC - Correct answer-Life Insurance Model Regulation
Taxation - Correct answer-Generally income tax free for the beneficiary
Financial strength of Insurer - Correct answer-AM Best
Fitch
Moody's
Standard & Poors
Annuities - Correct answer-A periodic payment that continues for a fixed period of
time or for the duration of a designated life or lives
IRA - Correct answer-Allows workers with taxable compensation to make annual
contributions to a retirement plan up to certain limits and receive favorable
income-tax treatment on such contributions
Traditional IRA - Correct answer-Must have taxable income
Must be under the age of 72
withdraw w/o penalty at age 59 1/2
Certain hardship exceptions prior to age 59 1/2
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
