Oregon Life & Health Insurance
(info)
a guaranteed minimum living income rider, which provides income protection when added to a
variable annuity. - ANS-(info)
a rider can be used to establish a fund to help a beneficiary pay taxes on annuity earnings;
(info)
but are generally only payable after the entire accelerated death benefit has been paid out. -
ANS-(info)
long-term care benefits may be provided in a life insurance policy or in a rider
(info)
failure to do so will result in a required minimum distribution penalty of 50% of the amount that
should have been withdrawn. - ANS-(info)
retirement plans: distributions must start before April 1 of the year following the year the
individual reaches the age of 70 1/2 at the appropriate distribution rate.
(info)
however, under the assignment provision, the policyowner must notify the insurer if he wants the
assignment to be honored in terms of the payment of benefits; the insurer will not attempt to
determine whether the assignment is valid; and the assignment does not change the status of
any policy loan (i.e. the insurer is still entitled to payment) - ANS-(info)
a policyowner may assign his interest in a policy to any other person without the approval of or
notification to the insurance company.
(info)
if he dies prior to receiving the full amount paid, there is no death benefit or payment to a
beneficiary - ANS-(info)
payments will continue for the annuitant's life, even if he outlives the amount paid into the
annuity.
(info)
If the disability lasts beyond the waiting period, any premiums paid during that time are
refunded. Because the premiums are waived and not deferred, any dividends due would be paid
and cash value in the policy will continue to grow. - ANS-(info)
a disability is total if it requires a doctor's care and prevents the insured from engaging in either
his own or any other occupation. A disability is permanent if it lasts beyond a specified waiting
period (generally three to six months)
(info)
,if the funds are disbursed to the participant before being rolled into a new account, the rollover
must occur within 60 days. If not, the distribution is taxed as ordinary income and subject to a
10% penalty for premature distribution. - ANS-(info)
Funds from qualified plans and IRAs may be rolled from one IRA to another or from a TSA or
other qualified plan to an IRA. A direct rollover from one plan to another may occur any number
of times in a year.
(info)
in both the initial amount of insurance is the amount owing on the loan. Coverage decreases as
payments are made and the loan balance decreases. - ANS-(Info)
Credit life may be obtained either as an individual policy or through a group policy.
(info)
It may be an investment that grows on a tax-deferred basis. Penalties are imposed for early
withdrawal - ANS-(info)
an annuity may be used to fund an IRA and defer taxes on contributions until retirement or as a
savings tool for educational or first-time home-buying purposes.
(info)
Surrender charges may apply if the funds are withdrawn - ANS-(info)
if an annuity contract lapses, based on nonforfeiture laws, the annuitant may use the cash value
as the premium for a paid-up annuity or take the value as a cash surrender benefit.
(info)
the group have been formed for a purpose other than to obtain insurance and that the group is
large enough to average out the risk;
a steady flow of members in and out of the group;
a certain percentage of eligible members enroll;
there be no individual selection of coverage - ANS-(info)
adverse selection exist when people who expect to die prematurely are buying the life insurance
while those who expect to live longer are not. insurer must avoid this by requiring:
(info)
the premium for the new policy is based on the insured's attained age or (original age (rarely)) -
ANS-(info)
Some term insurance policies are convertible. This means the policyowner is able to convert the
policy to a cash value policy, without proof of insurability, within a certain period of time before
the policy expires.
(info)
the premium increases with each renewal to reflect the insured's current age (attained age)
which means this is a step-rate policy. - ANS-(info)
if a term insurance policy is renewable, the policyowner may renew the policy, with no evidence
of insurability required, each time it expires up to the time set forth in the policy.
, 1. Both the cash value, and the death benefit are reduced
2. there is no interest charge on the amount withdrawn
3.there is no provision for repayment. If the policyowner wants to "repay" the money, the
payment is treats as a premium payment. - ANS-what happens when you take a withdrawal
from your Universal Life Policy's cash value account?
1. mortality factor
2. interest earned on premiums collected
3. insurer's expense - ANS-what are the three main factors used in computing life insurance
premiums?
1. not tax deductible - ANS-premiums for personal life insurance, business life insurance, and
key person life insurance are generally what?
1. not tax deductible
2. tax deductible
3. tax deferred
4. not tax deferred
1. Policy cash value may never exceed the net single premium at the insured's current age for
coverage.
2. Total premiums paid may not exceed certain levels and cash value may not exceed certain
percentages of the face amount at various times. - ANS-In order for cash value accumulation to
be tax deferred and policy proceeds to be tax free, the policy must satisfy one of two Internal
Revenue Code tests for life insurance.
1. the dependency, or child care, period when income is needed to support the family until the
youngest child reaches age 18
2. The Social Security blackout period which extends from the time the youngest child reaches
age 16 until the remaining spouse reaches age 60 and becomes eligible for Social Security
Benefits
3.The Retirement Period - ANS-(info)
the need for continuation of income changes based on the life cycle and falls into three periods:
100% - ANS-what percent of eligible employees must participate in a noncontributory plan?
2 years - ANS-after how many years, an insurer may not deny a claim by contesting the validity
of a policy on the basis of fraud or misrepresentation in the application.
2. not tax deductible, and proceeds are not taxable - ANS-the premiums on business
continuation insurance policies are
1. not tax deductible, and proceeds are taxable
2. not tax deductible, and proceeds are not taxable
3. tax deductible, and proceeds are not taxable
(info)
a guaranteed minimum living income rider, which provides income protection when added to a
variable annuity. - ANS-(info)
a rider can be used to establish a fund to help a beneficiary pay taxes on annuity earnings;
(info)
but are generally only payable after the entire accelerated death benefit has been paid out. -
ANS-(info)
long-term care benefits may be provided in a life insurance policy or in a rider
(info)
failure to do so will result in a required minimum distribution penalty of 50% of the amount that
should have been withdrawn. - ANS-(info)
retirement plans: distributions must start before April 1 of the year following the year the
individual reaches the age of 70 1/2 at the appropriate distribution rate.
(info)
however, under the assignment provision, the policyowner must notify the insurer if he wants the
assignment to be honored in terms of the payment of benefits; the insurer will not attempt to
determine whether the assignment is valid; and the assignment does not change the status of
any policy loan (i.e. the insurer is still entitled to payment) - ANS-(info)
a policyowner may assign his interest in a policy to any other person without the approval of or
notification to the insurance company.
(info)
if he dies prior to receiving the full amount paid, there is no death benefit or payment to a
beneficiary - ANS-(info)
payments will continue for the annuitant's life, even if he outlives the amount paid into the
annuity.
(info)
If the disability lasts beyond the waiting period, any premiums paid during that time are
refunded. Because the premiums are waived and not deferred, any dividends due would be paid
and cash value in the policy will continue to grow. - ANS-(info)
a disability is total if it requires a doctor's care and prevents the insured from engaging in either
his own or any other occupation. A disability is permanent if it lasts beyond a specified waiting
period (generally three to six months)
(info)
,if the funds are disbursed to the participant before being rolled into a new account, the rollover
must occur within 60 days. If not, the distribution is taxed as ordinary income and subject to a
10% penalty for premature distribution. - ANS-(info)
Funds from qualified plans and IRAs may be rolled from one IRA to another or from a TSA or
other qualified plan to an IRA. A direct rollover from one plan to another may occur any number
of times in a year.
(info)
in both the initial amount of insurance is the amount owing on the loan. Coverage decreases as
payments are made and the loan balance decreases. - ANS-(Info)
Credit life may be obtained either as an individual policy or through a group policy.
(info)
It may be an investment that grows on a tax-deferred basis. Penalties are imposed for early
withdrawal - ANS-(info)
an annuity may be used to fund an IRA and defer taxes on contributions until retirement or as a
savings tool for educational or first-time home-buying purposes.
(info)
Surrender charges may apply if the funds are withdrawn - ANS-(info)
if an annuity contract lapses, based on nonforfeiture laws, the annuitant may use the cash value
as the premium for a paid-up annuity or take the value as a cash surrender benefit.
(info)
the group have been formed for a purpose other than to obtain insurance and that the group is
large enough to average out the risk;
a steady flow of members in and out of the group;
a certain percentage of eligible members enroll;
there be no individual selection of coverage - ANS-(info)
adverse selection exist when people who expect to die prematurely are buying the life insurance
while those who expect to live longer are not. insurer must avoid this by requiring:
(info)
the premium for the new policy is based on the insured's attained age or (original age (rarely)) -
ANS-(info)
Some term insurance policies are convertible. This means the policyowner is able to convert the
policy to a cash value policy, without proof of insurability, within a certain period of time before
the policy expires.
(info)
the premium increases with each renewal to reflect the insured's current age (attained age)
which means this is a step-rate policy. - ANS-(info)
if a term insurance policy is renewable, the policyowner may renew the policy, with no evidence
of insurability required, each time it expires up to the time set forth in the policy.
, 1. Both the cash value, and the death benefit are reduced
2. there is no interest charge on the amount withdrawn
3.there is no provision for repayment. If the policyowner wants to "repay" the money, the
payment is treats as a premium payment. - ANS-what happens when you take a withdrawal
from your Universal Life Policy's cash value account?
1. mortality factor
2. interest earned on premiums collected
3. insurer's expense - ANS-what are the three main factors used in computing life insurance
premiums?
1. not tax deductible - ANS-premiums for personal life insurance, business life insurance, and
key person life insurance are generally what?
1. not tax deductible
2. tax deductible
3. tax deferred
4. not tax deferred
1. Policy cash value may never exceed the net single premium at the insured's current age for
coverage.
2. Total premiums paid may not exceed certain levels and cash value may not exceed certain
percentages of the face amount at various times. - ANS-In order for cash value accumulation to
be tax deferred and policy proceeds to be tax free, the policy must satisfy one of two Internal
Revenue Code tests for life insurance.
1. the dependency, or child care, period when income is needed to support the family until the
youngest child reaches age 18
2. The Social Security blackout period which extends from the time the youngest child reaches
age 16 until the remaining spouse reaches age 60 and becomes eligible for Social Security
Benefits
3.The Retirement Period - ANS-(info)
the need for continuation of income changes based on the life cycle and falls into three periods:
100% - ANS-what percent of eligible employees must participate in a noncontributory plan?
2 years - ANS-after how many years, an insurer may not deny a claim by contesting the validity
of a policy on the basis of fraud or misrepresentation in the application.
2. not tax deductible, and proceeds are not taxable - ANS-the premiums on business
continuation insurance policies are
1. not tax deductible, and proceeds are taxable
2. not tax deductible, and proceeds are not taxable
3. tax deductible, and proceeds are not taxable
