Life Insurance Study Exam- Georgia
An insurance producer selling a Variable Annuity whose cash value
depends on the performance of an underlying investment account must
be registered with: Correct answers The Financial Industry Regulatory
Authority (FINRA, formerly the NASD)
A life insurance policy whose cash value will fluctuate depending upon the
performance of a separate account is: Correct answers Variable Life
John Livingston owns a 30-Pay Life policy that he purchased at the age of 30.
The cash value will equal the face amount of the policy when he reaches the
age of: Correct answers 100
Which of the following types of insurance policies would provide the
greatest amount of protection for a temporary period during which an
insured will have limited financial resources? Correct answers Term
Which of the following statements about a Renewable Term policy is
true? Correct answers It is renewable at the option of the insured
An Annuity is designed to provide which of the following financial
features?
I. The liquidation of principal and interest
II. Favorable tax treatment
III. The creation of an estate Correct answers I and II
A 45-year old customer who is seeking to supplement his retirement
income at age 65 would not buy a: Correct answers Immediate Annuity
Which of the following is an example of a Limited-Pay Life policy? Correct
answers Life Paid-Up at Age 65
You have a client that is a real estate agent. Which of the following types of
permanent protection is best for this type of client? Correct answers
Adjustable life
Which of the following individual policy conversions is usually permitted
without any evidence of insurability? Correct answers Conversion from a
Term policy to a Whole Life policy
At age 30, Tom Morris wishes to purchase a Whole Life policy. His producer
explains that he can pay for the policy in several ways. One method is
called 20-Pay Life, and another, Straight Life. Tom wishes to know which
plan will accumulate cash value at a faster rate in the early years of the
policy. Which of the following would be the
, producer's most appropriate response? Correct answers "20-Pay Life will
accumulate cash value faster."
Sandra Timms, age 27, is advised by her producer to purchase Life
insurance to cover a 20-year-amortized $50,000 business-improvement
loan. Which of the following plans would adequately protect Ms. Timms at
the minimum premium outlay? Correct answers A $50,000 Decreasing Term
policy for 20 years
In order to sell variable life insurance you must be registered with
which of the following? Correct answers The NASD
Which of the following contracts requires that a series of benefit payments
be made at specified intervals? Correct answers Annuity
A life insurance policy that covers two parties, but only pays when the last
party dies is known as: Correct answers Survivorship Life
Most Term Life insurance: Correct answers Is convertible to permanent
Whole Life without a physical exam
If a person wants to invest a lump sum in an annuity that may appreciate
along with market and economic conditions, they should buy a: Correct
answers Variable Annuity
If a client wants cash value life insurance with a flexible premium and an
adjustable death benefit that will allow the policy owner a choice of various
cash value investment options, he should buy: Correct answers
Variable/Universal Life
Which of the following statements is true about the premium payment
schedule for a Whole Life policy? Correct answers Premiums are payable
throughout the insured's lifetime, and coverage continues until the
insured's death
Which of the following policies provides the greatest amount of protection
for an insured's premium dollar as well as some cash accumulation?
Correct answers Whole Life
Which of the following is NOT correct regarding Ordinary Whole Life
policies? Correct answers The cash value grows more quickly in the
beginning years of the policy
A business owner with a fluctuating income who wants a life insurance
policy that can be changed to suit economic conditions should buy: Correct
answers Adjustable Life
Which of the following is an example of a Limited-Pay Life policy: Correct
answers 20- Pay Life
A life insurance policy that combines term insurance protection, a flexible
premium, and cash value accumulation is: Correct answers Universal Life
An insurance producer selling a Variable Annuity whose cash value
depends on the performance of an underlying investment account must
be registered with: Correct answers The Financial Industry Regulatory
Authority (FINRA, formerly the NASD)
A life insurance policy whose cash value will fluctuate depending upon the
performance of a separate account is: Correct answers Variable Life
John Livingston owns a 30-Pay Life policy that he purchased at the age of 30.
The cash value will equal the face amount of the policy when he reaches the
age of: Correct answers 100
Which of the following types of insurance policies would provide the
greatest amount of protection for a temporary period during which an
insured will have limited financial resources? Correct answers Term
Which of the following statements about a Renewable Term policy is
true? Correct answers It is renewable at the option of the insured
An Annuity is designed to provide which of the following financial
features?
I. The liquidation of principal and interest
II. Favorable tax treatment
III. The creation of an estate Correct answers I and II
A 45-year old customer who is seeking to supplement his retirement
income at age 65 would not buy a: Correct answers Immediate Annuity
Which of the following is an example of a Limited-Pay Life policy? Correct
answers Life Paid-Up at Age 65
You have a client that is a real estate agent. Which of the following types of
permanent protection is best for this type of client? Correct answers
Adjustable life
Which of the following individual policy conversions is usually permitted
without any evidence of insurability? Correct answers Conversion from a
Term policy to a Whole Life policy
At age 30, Tom Morris wishes to purchase a Whole Life policy. His producer
explains that he can pay for the policy in several ways. One method is
called 20-Pay Life, and another, Straight Life. Tom wishes to know which
plan will accumulate cash value at a faster rate in the early years of the
policy. Which of the following would be the
, producer's most appropriate response? Correct answers "20-Pay Life will
accumulate cash value faster."
Sandra Timms, age 27, is advised by her producer to purchase Life
insurance to cover a 20-year-amortized $50,000 business-improvement
loan. Which of the following plans would adequately protect Ms. Timms at
the minimum premium outlay? Correct answers A $50,000 Decreasing Term
policy for 20 years
In order to sell variable life insurance you must be registered with
which of the following? Correct answers The NASD
Which of the following contracts requires that a series of benefit payments
be made at specified intervals? Correct answers Annuity
A life insurance policy that covers two parties, but only pays when the last
party dies is known as: Correct answers Survivorship Life
Most Term Life insurance: Correct answers Is convertible to permanent
Whole Life without a physical exam
If a person wants to invest a lump sum in an annuity that may appreciate
along with market and economic conditions, they should buy a: Correct
answers Variable Annuity
If a client wants cash value life insurance with a flexible premium and an
adjustable death benefit that will allow the policy owner a choice of various
cash value investment options, he should buy: Correct answers
Variable/Universal Life
Which of the following statements is true about the premium payment
schedule for a Whole Life policy? Correct answers Premiums are payable
throughout the insured's lifetime, and coverage continues until the
insured's death
Which of the following policies provides the greatest amount of protection
for an insured's premium dollar as well as some cash accumulation?
Correct answers Whole Life
Which of the following is NOT correct regarding Ordinary Whole Life
policies? Correct answers The cash value grows more quickly in the
beginning years of the policy
A business owner with a fluctuating income who wants a life insurance
policy that can be changed to suit economic conditions should buy: Correct
answers Adjustable Life
Which of the following is an example of a Limited-Pay Life policy: Correct
answers 20- Pay Life
A life insurance policy that combines term insurance protection, a flexible
premium, and cash value accumulation is: Correct answers Universal Life
