LIFE INSURANCE PRACTICE EXAM

LIFE INSURANCE PRACTICE EXAM 1. Insurable Receipt: A receipt given to a life insurance applicant upon completion of the application and receipt of the initial premium. 2. Representations: Statements in an insurance application that the applicant believes to be true to the best of their knowledge. 3. Provide the annuitant with an interest rate that is lesser of the guaranteed or current rate: An annuity is considered fixed when it guarantees a specified interest rate regardless of market conditions. 4. Continuous Premium (straight) life: The most common type of whole life insurance where premiums are paid throughout the insured's lifetime up to age 100. 5. Entire Contract: The complete set of documents including the insurance policy, application, any riders, and amendments. 6. Not taxable: Money borrowed from a life insurance policy's cash value is typically not subject to income tax. 7. All annuities (Variable, Deferred & Equity Indexed): Annuities that involve investment risk and require agents to hold a securities license. 8. Life income annuity: A type of annuity settlement where payments cease upon the annuitant's death. 9. 59 1/2: The age at which a participant can generally begin to receive distributions from a qualified retirement plan without incurring a 10% early withdrawal penalty. 10. Buy-Sell Agreement: A contract allowing business partners to use life insurance proceeds to buy out the deceased partner's share of the business. Adjustable life ️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 ️If an annuitant dies during the accumulation period, what will the beneficiary receive? Nonadmitted ️Any insurer who is NOT approved to do business in this state is considered Insurable Interest Exists ️To prevent people from profiting from a loss, insurers is the certain Adjusts the death benefit based on the premiums that were paid ️If a misstatement of age is discovered during the processing of a life insurance claim what will the insurer do? Policy Exclusions ️Which of the following allows an insurance company to deny coverage of the insurers eewth occurs in war? Evidence of insurability is usually required ️Each of the following is a typical characteristic of groups life insurance EXCEPT Fixed-Period Installments ️A life settlement option that pays out the death benefit is. Incrementally, in a specified amount until all of the proceeds are exhausted, is called Not subject to any taxes ️A life insurance death benefit paid in a lump sum to a beneficiary is Accumulation at Interest ️Which of the following is NOT a nonforfeiture option in whole life policies? Annuitant ️Which of the following indicates the person upon whose life the annuity income amount is determined? Single premium immediate annuity ️An annuity that is purchased with a lump-sum payment, and that