Life Only Agent Exam Questions and
Correct Answers
a group contract is between who? - correct answers:the insurer and the employer
what is a keogh plan? - correct answers:a retirement plan for those who are self employed
what is a illustration? - correct answers:a presentation or depiction that includes non guaranteed
elements of a policy of life insurance over a period of years
in a life insurance policy illustration "non-guaranteed elements" means what? - correct answers:the
premiums, benefits, values, credits or charges under a policy of life insurance that are not guaranteed or
not determined at issue
a stock redemption buy/sell agreement does what? - correct answers:facilitates the purchase of a
deceased shareholders shares from the shareholders heirs bu a corporation
a widow or widower without children would be eligible for social security survivors benefits at what age?
- correct answers:60
if a senior has purchased an annuity which is invested in a mutual fund and they cancel during the free
look period, the CIC requires what? - correct answers:they be refunded the value of the account
how must the free look notice for seniors be printed? - correct answers:10-point uppercase type, on the
cover page of the policy or certificate and the outline of coverage
a collateral assignment can be utilized to what? - correct answers:obtain a loan
a policy loan is outstanding when what? - correct answers:when the insured dies and the beneficiary
selects the fixed period settlement option, the outstanding loan will effect the amount of the payments
received, not the length they received for.
, an equity idexed annuity has what? - correct answers:a fixed minimum interest rate, and the chance to
get a higher rate of return like that of the stock market
a modified endowment contract has a? - correct answers:10% IRS early withdrawal penalty
Where does the agents commission come from? - correct answers:the insurer expenses portion of the
premium charged
life insurance policy illustration regulations were NOT created for what? - correct answers:to eliminate
disclosure
the CIC defines insurance as what? - correct answers:as a contract whereby one undertakes to indemnify
another against loss, damage, or liability arising from a contingent or unknown event
What does a joint life policy cover? - correct answers:multiple lives and pays out when the first insured
dies
if an insurance agent hires a website designer to create a website, who is responsible for the content of
the website? - correct answers:the insurance agent
what us the exclusion allowance? - correct answers:the formula used to determine the amount of
annuity distribution which is taxable
when can the insured change the beneficiary? - correct answers:at anytime if they are revocable
when can a representation be altered or withdrawn? - correct answers:before the insurance is effected,
but not afterwards.
when must a life insurance, insurable interest exist? - correct answers:when a policy is first issued
Correct Answers
a group contract is between who? - correct answers:the insurer and the employer
what is a keogh plan? - correct answers:a retirement plan for those who are self employed
what is a illustration? - correct answers:a presentation or depiction that includes non guaranteed
elements of a policy of life insurance over a period of years
in a life insurance policy illustration "non-guaranteed elements" means what? - correct answers:the
premiums, benefits, values, credits or charges under a policy of life insurance that are not guaranteed or
not determined at issue
a stock redemption buy/sell agreement does what? - correct answers:facilitates the purchase of a
deceased shareholders shares from the shareholders heirs bu a corporation
a widow or widower without children would be eligible for social security survivors benefits at what age?
- correct answers:60
if a senior has purchased an annuity which is invested in a mutual fund and they cancel during the free
look period, the CIC requires what? - correct answers:they be refunded the value of the account
how must the free look notice for seniors be printed? - correct answers:10-point uppercase type, on the
cover page of the policy or certificate and the outline of coverage
a collateral assignment can be utilized to what? - correct answers:obtain a loan
a policy loan is outstanding when what? - correct answers:when the insured dies and the beneficiary
selects the fixed period settlement option, the outstanding loan will effect the amount of the payments
received, not the length they received for.
, an equity idexed annuity has what? - correct answers:a fixed minimum interest rate, and the chance to
get a higher rate of return like that of the stock market
a modified endowment contract has a? - correct answers:10% IRS early withdrawal penalty
Where does the agents commission come from? - correct answers:the insurer expenses portion of the
premium charged
life insurance policy illustration regulations were NOT created for what? - correct answers:to eliminate
disclosure
the CIC defines insurance as what? - correct answers:as a contract whereby one undertakes to indemnify
another against loss, damage, or liability arising from a contingent or unknown event
What does a joint life policy cover? - correct answers:multiple lives and pays out when the first insured
dies
if an insurance agent hires a website designer to create a website, who is responsible for the content of
the website? - correct answers:the insurance agent
what us the exclusion allowance? - correct answers:the formula used to determine the amount of
annuity distribution which is taxable
when can the insured change the beneficiary? - correct answers:at anytime if they are revocable
when can a representation be altered or withdrawn? - correct answers:before the insurance is effected,
but not afterwards.
when must a life insurance, insurable interest exist? - correct answers:when a policy is first issued
