ALU 202 COMPREHENSIVE EXAMINATION
TEST SOLVED QUESTIONS AND CORRECT
ANSWERS COMPLETE REVIEW RESOURCE
⩥ Reinstatement.
Answer: company puts back in force a policy that has either been
terminated b/c of nonpayment OR continued under the extended term
OR reduced paid-up insurance non-forfeiture option
⩥ factors to consider whether to reinstate a lapsed policy.
Answer: whether or not the policy was Fac Re
policy face amount
current policy values
age of the PI
duration the policy has been in force
duration it has been lapsed
whether or not their has been prior lapses
new disclosed health history
⩥ nonmedical rate reductions - aviation risks.
Answer: language of aviation exclusions
whether or not the PI still holds a valid pilot license
,whether or not the PI sold the plane
how long has it been since the PI piloted a plane
⩥ post-issue policy changes that historically underwriting did not
review.
Answer: ownership changes
beneficiary changes
⩥ Specific tools that can be employed to determine insurability.
Answer: MIB
non-medical questionare
Paramed exam
blood and urine profile
Prescription hx (RxD)
APS
⩥ Advantages of a well-planned estate:.
Answer: maximize wealth
efficient use of estate capital
tax savings
appropriate asset ownership
estate distributed according to decedent's wishes
,adequate estate liquidity
⩥ Arguments FOR the estate tax:.
Answer: redistribution of wealth from rich to the poor
meaningful financial support for American democratic institutions of
government
tax encourages support for the charitable gifting
⩥ Arguments AGAINST the estate tax:.
Answer: disproportionately affects the rich rather than the poor
financial resources removed from the general economy causes a loss of
jobs
tax-supported government less effective that a free-market economy
⩥ Special use valuation.
Answer: Designed to value property according to its current use not its
potential value if used for other purposes. Special valuation regulations
apply in situation where a farm or closely held family business passes to
an heir with no intention to change the function of the property.
⩥ Adjusted gross estate - allowable deductions.
Answer: allowable debts (mortgages)
funeral expenses
, medical expenses
administrative expenses
losses during estate administration
martial and charitable deductions
⩥ Taxable estate =.
Answer: gross estate - applicable deductions
⩥ Considerations for estate growth projections.
Answer: reasonable rate of return
types of investment that makeup the estate
adjusted to the age of the estate owner
assume some of the investment income will be used by the estate owner
⩥ Canada has no estate tax but does have.
Answer: capital gains
⩥ recapture of capital cost allowance.
Answer: property is actually worth more than it's depreciated value, can
be added back to the value of the property, which is taxable income on
the terminal tax return
TEST SOLVED QUESTIONS AND CORRECT
ANSWERS COMPLETE REVIEW RESOURCE
⩥ Reinstatement.
Answer: company puts back in force a policy that has either been
terminated b/c of nonpayment OR continued under the extended term
OR reduced paid-up insurance non-forfeiture option
⩥ factors to consider whether to reinstate a lapsed policy.
Answer: whether or not the policy was Fac Re
policy face amount
current policy values
age of the PI
duration the policy has been in force
duration it has been lapsed
whether or not their has been prior lapses
new disclosed health history
⩥ nonmedical rate reductions - aviation risks.
Answer: language of aviation exclusions
whether or not the PI still holds a valid pilot license
,whether or not the PI sold the plane
how long has it been since the PI piloted a plane
⩥ post-issue policy changes that historically underwriting did not
review.
Answer: ownership changes
beneficiary changes
⩥ Specific tools that can be employed to determine insurability.
Answer: MIB
non-medical questionare
Paramed exam
blood and urine profile
Prescription hx (RxD)
APS
⩥ Advantages of a well-planned estate:.
Answer: maximize wealth
efficient use of estate capital
tax savings
appropriate asset ownership
estate distributed according to decedent's wishes
,adequate estate liquidity
⩥ Arguments FOR the estate tax:.
Answer: redistribution of wealth from rich to the poor
meaningful financial support for American democratic institutions of
government
tax encourages support for the charitable gifting
⩥ Arguments AGAINST the estate tax:.
Answer: disproportionately affects the rich rather than the poor
financial resources removed from the general economy causes a loss of
jobs
tax-supported government less effective that a free-market economy
⩥ Special use valuation.
Answer: Designed to value property according to its current use not its
potential value if used for other purposes. Special valuation regulations
apply in situation where a farm or closely held family business passes to
an heir with no intention to change the function of the property.
⩥ Adjusted gross estate - allowable deductions.
Answer: allowable debts (mortgages)
funeral expenses
, medical expenses
administrative expenses
losses during estate administration
martial and charitable deductions
⩥ Taxable estate =.
Answer: gross estate - applicable deductions
⩥ Considerations for estate growth projections.
Answer: reasonable rate of return
types of investment that makeup the estate
adjusted to the age of the estate owner
assume some of the investment income will be used by the estate owner
⩥ Canada has no estate tax but does have.
Answer: capital gains
⩥ recapture of capital cost allowance.
Answer: property is actually worth more than it's depreciated value, can
be added back to the value of the property, which is taxable income on
the terminal tax return
