2026 AVID PROTOOLS 110
CERTIFICATION – SPHS ACTUAL
QUESTIONS AND 100% CORRECT
ANSWERS
An insurance producer selling a Variable Annuity whose cash value
depends on the performance of an underlying investment account
must be registered with: - ANSWER The Financial Industry
Regulatory Authority (FINRA, formerly the NASD)
QUESIONA life insurance policy whose cash value will fluctuate
depending upon the performance of a separate account is: - ANSWER
Variable Life
QUESIONJohn Livingston owns a 30-Pay Life policy that he purchased
at the age of 30. The cash value will equal the face amount of the
policy when he reaches the age of: - ANSWER 100
QUESIONWhich of the following types of insurance policies would
provide the greatest amount of protection for a temporary period
during which an insured will have limited financial resources? -
ANSWER Term
,QUESIONWhich of the following statements about a Renewable Term
policy is true? - ANSWER It is renewable at the option of the insured
QUESIONAn Annuity is designed to provide which of the following
financial features?
I. The liquidation of principal and interest
II. Favorable tax treatment
III. The creation of an estate - ANSWER I and II
QUESIONA 45-year old customer who is seeking to supplement his
retirement income at age 65 would not buy a: - ANSWER Immediate
Annuity
QUESIONWhich of the following is an example of a Limited-Pay Life
policy? - ANSWER Life Paid-Up at Age 65
QUESIONYou have a client that is a real estate agent. Which of the
following types of permanent protection is best for this type of client?
- ANSWER Adjustable life
QUESIONWhich of the following individual policy conversions is
usually permitted without any evidence of insurability? - ANSWER
Conversion from a Term policy to a Whole Life policy
, QUESIONAt age 30, Tom Morris wishes to purchase a Whole Life
policy. His producer explains that he can pay for the policy in several
ways. One method is called 20-Pay Life, and another, Straight Life.
Tom wishes to know which plan will accumulate cash value at a faster
rate in the early years of the policy. Which of the following would be
the producer's most appropriate response? - ANSWER "20-Pay Life
will accumulate cash value faster."
QUESIONSandra Timms, age 27, is advised by her producer to
purchase Life insurance to cover a 20-year-amortized $50,000
business-improvement loan. Which of the following plans would
adequately protect Ms. Timms at the minimum premium outlay? -
ANSWER A $50,000 Decreasing Term policy for 20 years
QUESIONIn order to sell variable life insurance you must be
registered with which of the following? - ANSWER The NASD
QUESIONWhich of the following contracts requires that a series of
benefit payments be made at specified intervals? - ANSWER Annuity
QUESIONA life insurance policy that covers two parties, but only pays
when the last party dies is known as: - ANSWER Survivorship Life
QUESIONMost Term Life insurance: - ANSWER Is convertible to
permanent Whole Life without a physical exam
CERTIFICATION – SPHS ACTUAL
QUESTIONS AND 100% CORRECT
ANSWERS
An insurance producer selling a Variable Annuity whose cash value
depends on the performance of an underlying investment account
must be registered with: - ANSWER The Financial Industry
Regulatory Authority (FINRA, formerly the NASD)
QUESIONA life insurance policy whose cash value will fluctuate
depending upon the performance of a separate account is: - ANSWER
Variable Life
QUESIONJohn Livingston owns a 30-Pay Life policy that he purchased
at the age of 30. The cash value will equal the face amount of the
policy when he reaches the age of: - ANSWER 100
QUESIONWhich of the following types of insurance policies would
provide the greatest amount of protection for a temporary period
during which an insured will have limited financial resources? -
ANSWER Term
,QUESIONWhich of the following statements about a Renewable Term
policy is true? - ANSWER It is renewable at the option of the insured
QUESIONAn Annuity is designed to provide which of the following
financial features?
I. The liquidation of principal and interest
II. Favorable tax treatment
III. The creation of an estate - ANSWER I and II
QUESIONA 45-year old customer who is seeking to supplement his
retirement income at age 65 would not buy a: - ANSWER Immediate
Annuity
QUESIONWhich of the following is an example of a Limited-Pay Life
policy? - ANSWER Life Paid-Up at Age 65
QUESIONYou have a client that is a real estate agent. Which of the
following types of permanent protection is best for this type of client?
- ANSWER Adjustable life
QUESIONWhich of the following individual policy conversions is
usually permitted without any evidence of insurability? - ANSWER
Conversion from a Term policy to a Whole Life policy
, QUESIONAt age 30, Tom Morris wishes to purchase a Whole Life
policy. His producer explains that he can pay for the policy in several
ways. One method is called 20-Pay Life, and another, Straight Life.
Tom wishes to know which plan will accumulate cash value at a faster
rate in the early years of the policy. Which of the following would be
the producer's most appropriate response? - ANSWER "20-Pay Life
will accumulate cash value faster."
QUESIONSandra Timms, age 27, is advised by her producer to
purchase Life insurance to cover a 20-year-amortized $50,000
business-improvement loan. Which of the following plans would
adequately protect Ms. Timms at the minimum premium outlay? -
ANSWER A $50,000 Decreasing Term policy for 20 years
QUESIONIn order to sell variable life insurance you must be
registered with which of the following? - ANSWER The NASD
QUESIONWhich of the following contracts requires that a series of
benefit payments be made at specified intervals? - ANSWER Annuity
QUESIONA life insurance policy that covers two parties, but only pays
when the last party dies is known as: - ANSWER Survivorship Life
QUESIONMost Term Life insurance: - ANSWER Is convertible to
permanent Whole Life without a physical exam
