Life Insurance Producer/Agent Practice Exam Questions and Answers Graded A

Life Insurance Producer/Agent Practice Exam Questions and Answers Graded A Life insurance helps meet estate planning objectives because it is: a liquid asset at death Which one of the following statements about a life insurance policy rider regarding waiver of premiums and disability income is true? In addition to waiving premiums during periods of disability, it provides a monthly income. Which rider is included in a policy with whole life insurance on the principal insured and term insurance on the insured's spouse and children? a family rider A rated life insurance policy is issued at: Substandard risk rate The beneficiary of a life insurance policy originally is indicated: on the life insurance application All of the following are reasons for purchasing life insurance on a spouse who does not work for pay outside the home EXCEPT: To guarantee that newborn children will be eligible for life insurance Death benefits under a survivorship life insurance policy covering two insureds are paid: In full at the second insured's death The authority to select a settlement option under an individual annuity contract resides with: the owner Current interest rates provide a reasonable basis for projecting cash values in a fixed annuity when: The current interest rate is close to historical standards When an annuitant under a life-only annuity dies, what is the amount of the property interest in the contract that will be includable in the annuitant's gross estate? zero Which one of the following statements is true if an insured purchases a limited payment whole life insurance policy? the insurance has a lifetime protection All of the following statements about the ownership provision in a life insurance policy are true EXCEPT: It states the insurer will pay the proceeds to the beneficiary upon receiving proof of the insured's death. The trustees of a qualified retirement plan received notice of several claims against the accrued benefits of a key employee, age 52. The trustees must refuse to pay all of the following EXCEPT: The Internal Revenue Service presenting an order for collection Deferred annuities are normally purchased by individuals who Want tax-deferred growth for retirement funds The gross annual premium for a whole life insurance policy is the net premium: plus expenses A misleading life insurance policy illustration may result from any of the following EXCEPT: reflecting the time value of money If a life insurance policy is transferred to another person in exchange for valuable consideration, then the death proceeds may: Lose their income tax exempt status Which qualified plan may be established by a business corporation? a simplified employee pension All of the following statements about universal life insurance are true EXCEPT: premiums must me paid on a monthly basis All of the following are associated with the interest-adjusted net cost method of life insurance policy comparison EXCEPT: seperate investment account Which one of the following factors is considered in determining the amount payable under the interest ONLY settlement option in life insurance policies? the amount of policy proceeds Which statement is true about life annuities? The insurer uses the law of large numbers to predict life expectancy. Compared to a joint life insurance policy, separate whole life insurance policies on each of the insureds typically result in: higher combined premiums When replacement is involved, the life insurance producer or agent is required to give the applicant: a copy of each sales proposal used in the presentation