LA Life Insurance Series 101 EXAM QUESTIONS
AND VERIFIED ACCURATE SOLUTION |GET IT
100% ACCURATE!!!
What is the only way an Annuity can pay out income tax free benefit payments? - ANSWER-Fund a Roth
IRA and make a qualified distribution.
What is the " waiver of premium" called on a Universal Life Insurance policy? - ANSWER-Waiver of Cost
of Insurance
Which of the following Term Life insurance policies cannot be renewed? - ANSWER-Decreasing
Most often, life policies pay death claims in a single lump sum. The options that allow benefits to be paid
other than lump sum are called _____________. - ANSWER-Settlement Options
Should an insured become totally and permanently disabled two months before the cut-off date for the
waiver of premium rider: - ANSWER-The Insured remains eligible for all provisions.
First to die and last to die Life Insurance policies have in common all of the following, EXCEPT: -
ANSWER-They both continue in force after one of the named insureds dies.
Under Social Security, a worker needs 10 years of work to be considered _________ insured? - ANSWER-
Fully
A married couple purchases a 250,000.00 Joint Life policy. When the older of the two dies, What is the
amount payable to the survivor? - ANSWER-250,000.00
With a Life Income Payment Option, what happens at the annuitant's death? - ANSWER-All Payments
cease
Which of the following is the most expensive premium mode overall? - ANSWER-Monthly
, What is the primary purpose of the reinstatement provision? - ANSWER-To put a policy back in force as
if it had never lapsed.
Generally, Which of the following Annuities is not designed to guarantee the principal value of the policy
in stable interest rate environments? - ANSWER-Variable
Of the following, Which best describes a Straight Whole Life policy? - ANSWER-Level guaranteed
premium and face value for the life of the insured.
What is the name of a single policy covering two or more lives that pays benefits upon the death of the
first insured? - ANSWER-Joint Life
If the Annuitant, now deceased was receiving income from a Pure Life or Straight Life annuity, how
much goes into the annuitants estate for valuation? - ANSWER-Nothing
The _______ provision specifies what an insured must do if a policy has lapsed in order to put it back in
force? - ANSWER-Reinstatement
The bank may require it's borrowers to have a Life Insurance policy to secure a loan in the event of the
borrowers death. Which provision gives the bank proportional protection but not control of the policy? -
ANSWER-Collateral Assignment
All of the following are characteristics of a 401K plan, EXCEPT: - ANSWER-Post retirement distributions
are made federal income tax free.
When an insurance company fails to enforce a provision in a contract and decides to pay a claim, they
are giving up a legal right or advantage. This is known as which of the following? - ANSWER-Waiver
ERISA (Employee Retirement Income Security Act) is a ____________ law. - ANSWER-Federal
Jill, whose policy contains a waiver of premium rider becomes disabled for two years during which time
the company pays over 400 in premiums. Jill recovers and now must: - ANSWER-Begin paying the
premiums as they become due.
AND VERIFIED ACCURATE SOLUTION |GET IT
100% ACCURATE!!!
What is the only way an Annuity can pay out income tax free benefit payments? - ANSWER-Fund a Roth
IRA and make a qualified distribution.
What is the " waiver of premium" called on a Universal Life Insurance policy? - ANSWER-Waiver of Cost
of Insurance
Which of the following Term Life insurance policies cannot be renewed? - ANSWER-Decreasing
Most often, life policies pay death claims in a single lump sum. The options that allow benefits to be paid
other than lump sum are called _____________. - ANSWER-Settlement Options
Should an insured become totally and permanently disabled two months before the cut-off date for the
waiver of premium rider: - ANSWER-The Insured remains eligible for all provisions.
First to die and last to die Life Insurance policies have in common all of the following, EXCEPT: -
ANSWER-They both continue in force after one of the named insureds dies.
Under Social Security, a worker needs 10 years of work to be considered _________ insured? - ANSWER-
Fully
A married couple purchases a 250,000.00 Joint Life policy. When the older of the two dies, What is the
amount payable to the survivor? - ANSWER-250,000.00
With a Life Income Payment Option, what happens at the annuitant's death? - ANSWER-All Payments
cease
Which of the following is the most expensive premium mode overall? - ANSWER-Monthly
, What is the primary purpose of the reinstatement provision? - ANSWER-To put a policy back in force as
if it had never lapsed.
Generally, Which of the following Annuities is not designed to guarantee the principal value of the policy
in stable interest rate environments? - ANSWER-Variable
Of the following, Which best describes a Straight Whole Life policy? - ANSWER-Level guaranteed
premium and face value for the life of the insured.
What is the name of a single policy covering two or more lives that pays benefits upon the death of the
first insured? - ANSWER-Joint Life
If the Annuitant, now deceased was receiving income from a Pure Life or Straight Life annuity, how
much goes into the annuitants estate for valuation? - ANSWER-Nothing
The _______ provision specifies what an insured must do if a policy has lapsed in order to put it back in
force? - ANSWER-Reinstatement
The bank may require it's borrowers to have a Life Insurance policy to secure a loan in the event of the
borrowers death. Which provision gives the bank proportional protection but not control of the policy? -
ANSWER-Collateral Assignment
All of the following are characteristics of a 401K plan, EXCEPT: - ANSWER-Post retirement distributions
are made federal income tax free.
When an insurance company fails to enforce a provision in a contract and decides to pay a claim, they
are giving up a legal right or advantage. This is known as which of the following? - ANSWER-Waiver
ERISA (Employee Retirement Income Security Act) is a ____________ law. - ANSWER-Federal
Jill, whose policy contains a waiver of premium rider becomes disabled for two years during which time
the company pays over 400 in premiums. Jill recovers and now must: - ANSWER-Begin paying the
premiums as they become due.
