LIFE INSURANCE PRACTICE EXAM QUESTIONS WITH CORRECT ANSWERS

Insurable Receipt - ANSWER-The receipt given to a life insurance applicant when the application is completed and the initial premium is received is called a(n) Representations - ANSWER-Statements in the application for insurance that are believed to be true to the best of the applicants knowledge are Provide the annuitant with an interest rate that is lesser of the guaranteed or current rate - ANSWER-An annuity is considered fixed when it does all of the following EXCEPT Continuous Premium (straight) life - ANSWER-The most common type of whole life insurance where premiums are payable over the whole life of the insured to age 100 is called. Entire contract - ANSWER-The policy and a copy of the application, along with any riders and amendments, is called the Not taxable - ANSWER-Money borrowed from the policy's cash value is All annuities (Variable, Deferreed & Equity Indexed) - ANSWER-Which of the following annuity products requires an agent to hold a securities license? Life income annuity - ANSWER-Which type of annuity settlement stops when the annuitant dies? 59 1/2 - ANSWER-At what age can a participant receive distributions from a qualified plan without incurring a 10% penalty Buy-Sell Agreement - ANSWER-Two business partners own life insurance on each other. If one partner dies, which of the following contracts will allow the surviving partner to use the death benefit to purchase the deceased's business interests? Adjustable life - ANSWER-Which type of policy allows the insured to change the amount of the dwah benefit, the amount of premium, or the type of coverage S their needs change? Either the cash value or the premiums paid, whichever is greater - ANSWER-If an annuitant dies during the accumulation period, what will the beneficiary receive? Nonadmitted - ANSWER-Any insurer who is NOT approved to do business in this state is considered