Idaho Life Insurance final exam questions and answers verified 100 %

Idaho Life Insurance final exam questions and answers verified 100 % All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT A The employer pays a bonus to a selected employee to fund the policy. B It is considered a nonqualified employee benefit. C The policy is owned by the company. D Any type of insurance policy may be used. - C The policy is owned by the company. Which of the following would NOT fall into the category of costs associated with death? A The expense of a vacation for surviving family members B Funeral expenses C Final medical expenses of the insured D Day to day expenses of maintaining the family - A The expense of a vacation for surviving family members If an applicant for a life insurance policy is found to be a substandard risk, the insurance company is most likely to A Lower its insurability standards. B Refuse to issue the policy. C Charge a higher premium. D Require a yearly medical examination. - C Charge a higher premium. What is the purpose of key person insurance? A To provide health insurance to the families of key employees B To insure retirement benefits are available to all key employees C To maintain an account that insures the owner of a company remains solvent D To lessen the risk of financial loss because of the death of a key employee - D To lessen the risk of financial loss because of the death of a key employee In terms of Social Security, what is the name for the time period after the youngest child of a family turns 16 and before the surviving spouse may start receiving retirement benefits? A Blackout period B Nonpayment interval C Benefit reduction D Accumulation period - A Blackout period Which of the following would be the best option that would help the surviving spouse of the insured to put her child through daycare after the insured's death? A Viatical settlement B Estate conservation C Life insurance proceeds D State Education Waiver - C Life insurance proceeds Which of the following is NOT an example of a valid insurable interest? A Business partners in each other's lives B Employer in key employee's life C Child in parents' lives D Debtor in the life of the creditor - D Debtor in the life of the creditor *The three recognized areas in which insurable interest exists are as follows: a policyowner insuring their own life, the life of a family member (relative or spouse), or the life of a business partner, key employee, or someone who has a financial obligation to the policyowner. A debtor does not have an insurable interest in the creditor. When must insurable interest exist in a life insurance policy? A At the time of policy delivery B When there is a change o