Arizona Life Insurance 130 Exam Quiz
Questions With Solutions
According to the IRS, a company may NOT do which of the following in regards
to funds in a qualified retirement plan?
Transfer the funds to a new custodian
Invest the funds in mutual funds
Transfer vested funds to terminated employees
Repossess the funds for business purposes - Correct Answer ✔️✔
️Repossess the funds for business purposes
Which of the following is associated with an immediate annuity?
,Tax-free benefit payments
Installment premium payments
Lack of an accumulation period
Lump-sum benefit - Correct Answer ✔️✔️Lack of an accumulation period
Scott has a life insurance policy in which the dividends are left with the
insurance company. This particular policy may be paid up when the cash value
plus accumulated dividends
equal the net single premium for the same face amount at the insured's
attained age
can purchase extended term coverage for a period of two years or more
,equal the nonforfeiture value of the policy
can purchase a paid-addition - Correct Answer ✔️✔️equal the net single
premium for the same face amount at the insured's attained age
A life annuity feature which provides benefit payments for a minimum number
of years, no matter when the annuitant dies, is called
fixed period
period certain
installment refund
straight life - Correct Answer ✔️✔️period certain
, What happens to the purchasing power of benefit payments from a fixed life
annuity when the cost of living goes up?
Increases
Decreases
Not affected by inflation
Tied to stock index - Correct Answer ✔️✔️Decreases
Under which circumstance is the interest rate guaranteed within a market value
adjusted annuity?
which of these statements regarding the extended term insurance nonforfeiture
option in a life policy is accurate
Questions With Solutions
According to the IRS, a company may NOT do which of the following in regards
to funds in a qualified retirement plan?
Transfer the funds to a new custodian
Invest the funds in mutual funds
Transfer vested funds to terminated employees
Repossess the funds for business purposes - Correct Answer ✔️✔
️Repossess the funds for business purposes
Which of the following is associated with an immediate annuity?
,Tax-free benefit payments
Installment premium payments
Lack of an accumulation period
Lump-sum benefit - Correct Answer ✔️✔️Lack of an accumulation period
Scott has a life insurance policy in which the dividends are left with the
insurance company. This particular policy may be paid up when the cash value
plus accumulated dividends
equal the net single premium for the same face amount at the insured's
attained age
can purchase extended term coverage for a period of two years or more
,equal the nonforfeiture value of the policy
can purchase a paid-addition - Correct Answer ✔️✔️equal the net single
premium for the same face amount at the insured's attained age
A life annuity feature which provides benefit payments for a minimum number
of years, no matter when the annuitant dies, is called
fixed period
period certain
installment refund
straight life - Correct Answer ✔️✔️period certain
, What happens to the purchasing power of benefit payments from a fixed life
annuity when the cost of living goes up?
Increases
Decreases
Not affected by inflation
Tied to stock index - Correct Answer ✔️✔️Decreases
Under which circumstance is the interest rate guaranteed within a market value
adjusted annuity?
which of these statements regarding the extended term insurance nonforfeiture
option in a life policy is accurate
