Guarantee Exam 6

Which life insurance settlement option guarantees payments for the lifetime of the recepient, But also specifies a guaranteed period, During which, if the original recipient dies, The payments will continue To a designated beneficiary? - Answer- Life income with period certain To which of the following products does the Replacement Regulation apply? - Answer- Whole life insurance What does "liquidity" refer to in a life insurance policy? - Answer- Cash values can be borrowed at any time An insured has chosen joint and 2/3 Survivor as the settlement option. What does this mean to the beneficiaries? - Answer- The surviving beneficiary will continue receiving 2/3 of the benefit paid when both of the beneficiaries were alive If an annuitant dies during the accumulation period, What benefit, if any, will be included in the annuitant's estate? - Answer- Accumulated cash value Anyone convicted of committing an insurance fraud nay be fined up to the greater amount of double the value of the fraud or - Answer- $150,000 In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT - Answer- The type of investment Which of the following statements concerning buy-sell agreements is true? - Answer- Buy-sell agreements are normally funded with a life insurance policy In general terms, IRA contributions - Answer- Are tax deductible An Internal Revenue Code provision T that specifically provides for an individual retirement plan for public school teachers is a - Answer- 403(b) Plan(TSA) Attempting to determine how much insurance an individual would require based upon their financial objectives is known as - Answer- Needs approach W