XCEL LIFE AND HEALTH INSURANCE FINAL EXAM NEWEST
ACTUAL EXAM WITH COMPLETE QUESTIONS AND CORRECT
VERIFIED ANSWERS(DETAILED ANSWERS) ALREADY GRADED
A+ 100% GUARANTEED TO PASS CONCEPTS!!!
Keogh Plan - CORRECT ANSWER-Retirement plan for self-employed individual
and their qualified employees
Rollover - CORRECT ANSWER-Tax free withdrawal of cash or other assets from
one retirement program and its reinvestment in another program. It is not
considered income and it is not taxable until a later withdrawal. Has to be
completed in 60 days
Transfer - CORRECT ANSWER-When amounts of a qualified plan are transferred
to another qualified plan
Employee Retirement Income Security Act (ERISA) - CORRECT ANSWER-Federal
law that increased the responsibility of pension plan trustees to protect retirees,
established certain rights related to vesting and portability, and created the
Pension Benefit Guarantee Corporation
,profit-sharing plan - CORRECT ANSWER-a benefit whereby employees may
share in the profits of the business
Catch-up Contributions - CORRECT ANSWER--for those aged 50 or older
-additional $1,000 annually
**Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) -
established the catch up provisions**
Rollover time frame - CORRECT ANSWER-60 days
Keogh Plan - CORRECT ANSWER-A federally-approved, tax-deferred savings
program for self-employed people, allowing them to set money aside for their
retirement.
Annuity Period - CORRECT ANSWER-the payout period of an annuity
Flexible Premium Annuity - CORRECT ANSWER-allows the owner to vary the
premium payments
Deferred Annuity - CORRECT ANSWER-An annuity that starts sometime in the
future.
,Variable Annuity - CORRECT ANSWER-Annuity that has a varying rate of return
based on the mutual funds in which one has invested
Gramm-Leach-Bliley Act - CORRECT ANSWER-requires financial institutions to
ensure the security and confidentiality of customer data
Section 529 Plans - CORRECT ANSWER-- state provided
- can be funded by after tax dollars
- can pay prepaid tuition
- All earnings exempt from federal taxes
- If withdrawn for unqualified withdrawl, 10% penalty
Roth IRA - CORRECT ANSWER-private retirement plan that taxes income before
it is saved, but which does not tax interest on that income when funds are used
upon retirement
Distributions don't have to start before 70.5
401(k) plan - CORRECT ANSWER-Elective deferral plan that allows employee to
reduce compensation by a stated percentage on a tax deductible/ tax differed
basis; often the employer matches the employee contributions
Simplified Employee Pension (SEP) - CORRECT ANSWER-A qualified plan in
which a smaller employer contributes specified amounts directly into IRA
accounts on behalf of eligible employees
, 403(b) plan - CORRECT ANSWER-An elective deferral plan for employees of
organizations such as school systems, churches, and hospitals
Certificate of Insurance (COI) - CORRECT ANSWER-proof that the insured has
insurance
Market conduct - CORRECT ANSWER-refers to the marketing practices of
insurers and agents that involve interaction with insureds, claimants, or
consumers
expense loading - CORRECT ANSWER-the amount needed to pay all expenses,
including commissions, general administrative expenses, state premium taxes,
acquisition expenses, and an allowance for contingencies and profit
Straight Life Annuity - CORRECT ANSWER-The payout option that will guarantee
an annuity payment for the remainder of an individual's life. This option typically
provides the largest monthly payment.
Refund Life Annuity - CORRECT ANSWER-Provides annuity payments for the
annuitant's lifetime with the guarantee that in no event will total income be less
than the purchase price of the contract. If the annuitant dies before receiving this
amount, the difference is paid to a named beneficiary either as a cash refund or in
installments.
convertible term policy - CORRECT ANSWER-
ACTUAL EXAM WITH COMPLETE QUESTIONS AND CORRECT
VERIFIED ANSWERS(DETAILED ANSWERS) ALREADY GRADED
A+ 100% GUARANTEED TO PASS CONCEPTS!!!
Keogh Plan - CORRECT ANSWER-Retirement plan for self-employed individual
and their qualified employees
Rollover - CORRECT ANSWER-Tax free withdrawal of cash or other assets from
one retirement program and its reinvestment in another program. It is not
considered income and it is not taxable until a later withdrawal. Has to be
completed in 60 days
Transfer - CORRECT ANSWER-When amounts of a qualified plan are transferred
to another qualified plan
Employee Retirement Income Security Act (ERISA) - CORRECT ANSWER-Federal
law that increased the responsibility of pension plan trustees to protect retirees,
established certain rights related to vesting and portability, and created the
Pension Benefit Guarantee Corporation
,profit-sharing plan - CORRECT ANSWER-a benefit whereby employees may
share in the profits of the business
Catch-up Contributions - CORRECT ANSWER--for those aged 50 or older
-additional $1,000 annually
**Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) -
established the catch up provisions**
Rollover time frame - CORRECT ANSWER-60 days
Keogh Plan - CORRECT ANSWER-A federally-approved, tax-deferred savings
program for self-employed people, allowing them to set money aside for their
retirement.
Annuity Period - CORRECT ANSWER-the payout period of an annuity
Flexible Premium Annuity - CORRECT ANSWER-allows the owner to vary the
premium payments
Deferred Annuity - CORRECT ANSWER-An annuity that starts sometime in the
future.
,Variable Annuity - CORRECT ANSWER-Annuity that has a varying rate of return
based on the mutual funds in which one has invested
Gramm-Leach-Bliley Act - CORRECT ANSWER-requires financial institutions to
ensure the security and confidentiality of customer data
Section 529 Plans - CORRECT ANSWER-- state provided
- can be funded by after tax dollars
- can pay prepaid tuition
- All earnings exempt from federal taxes
- If withdrawn for unqualified withdrawl, 10% penalty
Roth IRA - CORRECT ANSWER-private retirement plan that taxes income before
it is saved, but which does not tax interest on that income when funds are used
upon retirement
Distributions don't have to start before 70.5
401(k) plan - CORRECT ANSWER-Elective deferral plan that allows employee to
reduce compensation by a stated percentage on a tax deductible/ tax differed
basis; often the employer matches the employee contributions
Simplified Employee Pension (SEP) - CORRECT ANSWER-A qualified plan in
which a smaller employer contributes specified amounts directly into IRA
accounts on behalf of eligible employees
, 403(b) plan - CORRECT ANSWER-An elective deferral plan for employees of
organizations such as school systems, churches, and hospitals
Certificate of Insurance (COI) - CORRECT ANSWER-proof that the insured has
insurance
Market conduct - CORRECT ANSWER-refers to the marketing practices of
insurers and agents that involve interaction with insureds, claimants, or
consumers
expense loading - CORRECT ANSWER-the amount needed to pay all expenses,
including commissions, general administrative expenses, state premium taxes,
acquisition expenses, and an allowance for contingencies and profit
Straight Life Annuity - CORRECT ANSWER-The payout option that will guarantee
an annuity payment for the remainder of an individual's life. This option typically
provides the largest monthly payment.
Refund Life Annuity - CORRECT ANSWER-Provides annuity payments for the
annuitant's lifetime with the guarantee that in no event will total income be less
than the purchase price of the contract. If the annuitant dies before receiving this
amount, the difference is paid to a named beneficiary either as a cash refund or in
installments.
convertible term policy - CORRECT ANSWER-
