NC Life Insurance Study Guide Questions with Correct Answers 100% Verified

NC Life Insurance Study Guide Questions with Correct Answers 100% Verified $1,120 - Answer Each Social Security credit equals _______ annual FICA taxed earnings in 2011. $2,000 - Answer Bob's life insurance policy cash value is $10,000 and he has paid $8,000 in premiums. He now wants to surrender the policy for its cash value. How much is considered taxable? $2,000 - Answer The Social Security payroll tax is known as ____________ tax. $255 - Answer Social Security provides for a maximum death benefit of: $5,000 - Answer Ed is 24 years old and works as a clerk in his father's hardware store. He earned $30,000 in 2011 and wants to invest in an IRA as much as he can to lower his taxable income. How much is he eligible to contribute and deduct from his taxes? $5,500 - Answer Both SARSEP and SIMPLE plans allow employees 50+ years of age to make catch-up contributions with a $_______ limit on a SARSEP and a $2,500 limit on a SIMPLE (2011). $500 - Answer Audrey, a 34-year old attendant, has a $10,000 IRA with her former employer and wants to roll the funds over into an IRA with her new employer but wants to keep out $5,000 to pay some bills. How much early distribution penalty will she have to pay? 10 - Answer The free look provision for life insurance policies is ____ days from policy delivery. 10 - Answer The free look provision for life insurance policies is ____ days from policy delivery. 10 Days - Answer The Free Look Period for life insurance contracts is _______ days. 10% - Answer No cash withdrawals from a traditional IRA are permitted prior to the policyowner reaching the age of 59 1/2 without having to pay a ______ excise tax, with few exceptions. 100 - Answer Whole life insurance policies typically mature at age: 15 - Answer All minors in North Carolina, age ____ and older have full power and authority to make contracts of insurance. 2 - Answer The incontestable clause is typically ______ years. 2 years - Answer What is the typical period of time specific to the suicide clause in life insurance policies? 31 days - Answer According to N.C. law, all group life policies must contain a conversion provision which allows the covered individual _______ to convert the group coverage to an individual plan without evidence of insurability if their employment is terminated. 31 days - Answer According to N.C. law, all group life policies must contain a conversion provision which allows the covered individual _______ to convert the group coverage to an individual plan without evidence of insurability if their employment is terminated. 31 days - Answer According to N.C. law, all group life policies must contain a conversion provision which allows the covered individual _______ to convert the group coverage to an individual plan without evidence of insurability if their employment is terminated. 40 quarters - Answer Under Social Security benefits, in order for an individual to be classified as "fully insured," the worker must have completed _________________ of participating employment. 40 quarters - Answer Under Social Security benefits, in order for an individual to be classified as "fully insured," the worker must have completed _________________ of participating employment. 5 - Answer The insurer has informed applicant Joan that adverse information has been discovered through her credit report investigation. Joan requests a summary of the information. The insurer has ______ days in which to provide Joan with the information. 5 - Answer To address the special needs of senior consumers with regard to annuity investments, an agent should maintain records relating to such transactions for ________ years. 5 months - Answer Robert had an accident and qualified for Social Security disability. Given the waiting period, when will Robert begin to receive benefits?