Arizona Life Insurance
Which of the following is NOT a dividend option for a life insurance policy?
-Elect to take the dividends in cash
-Allow the dividends to accumulate with interest
-Use the dividends to pay all or part of the next premium due
-Receiving the entire policy cash value - answer Receiving the entire cash value
A life insurance policy provision that has the ability to reduce the death benefit is called
the
-accelerated (living) benefit
-insuring clause
-payor benefit
-spendthrift clause - answer accelerated (living) benefit
A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to
avoid
-mandatory income tax withholding on the amount transferred
-paying transfer fees
-paying trustee fees
-ever paying income taxes on the distributions - answermandatory income tax
withholding on the amount transferred
An HMO prescription drug plan is generally characterized by
-generic drugs only
-annual deductibles
-drugs dispensed through participating pharmacies
-drugs dispensed through online pharmacies - answerdrugs dispensed through
participating pharmacies
Who typically makes the purchase payments in an individual annuity?
-Owner
-Trustee
-Insurer
-Beneficiary - answerOwner
An agent whose actions exceed the authority granted by the contract is
-acting under apparent authority
, -acting under implied authority
-not backed by the insurer
-backed by the insurer - answernot backed by the insurer
When disability buy-sell insurance benefits exceed a partner's cost basis, which of the
following is correct?
-The excess is taxed as a capital gain to the partner
-The excess is taxed as ordinary income to the partner
-The excess is partially taxable to the partner
-The full amount is non-taxable to the partner - answerThe full amount is non-taxable to
the partner
The Genetic Information Nondiscrimination Act of 2008 bars all of the following,
EXCEPT:
-prohibits group health plans and health insurers from denying coverage to a healthy
individual
-charging that person higher premiums based solely on a genetic predisposition to
developing a disease in the future
-bars the use of genetic information in health insurance
-prohibits the use of genetic information in health insurance, unless the applicant signs
a waiver - answerprohibits the use of genetic information in health insurance, unless the
applicant signs a waiver
Bryce purchased a disability income policy with a rider that guarantees him the option of
purchasing additional amounts of coverage at predetermined times without requiring to
provide evidence of insurability. What kind of rider is this?
-Guaranteed insurability rider
-Additional coverage rider
-Paid-up option rider
-Extended insurability rider - answerGuaranteed insurability rider
Which of the following statements about universal life insurance is NOT true?
-Death benefit can be increased
-Premiums are flexible
-Universal life insurance normally has a minimum guaranteed cash value for the
duration of the policy
-The cash value interest rate must equal or exceed a guaranteed minimum value -
answerUniversal life insurance normally has a minimum guaranteed cash value for
duration of the policy
What is the maximum number of employees (earning at least $5,000) that an employer
can have in order to start a SIMPLE retirement plan?
Which of the following is NOT a dividend option for a life insurance policy?
-Elect to take the dividends in cash
-Allow the dividends to accumulate with interest
-Use the dividends to pay all or part of the next premium due
-Receiving the entire policy cash value - answer Receiving the entire cash value
A life insurance policy provision that has the ability to reduce the death benefit is called
the
-accelerated (living) benefit
-insuring clause
-payor benefit
-spendthrift clause - answer accelerated (living) benefit
A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to
avoid
-mandatory income tax withholding on the amount transferred
-paying transfer fees
-paying trustee fees
-ever paying income taxes on the distributions - answermandatory income tax
withholding on the amount transferred
An HMO prescription drug plan is generally characterized by
-generic drugs only
-annual deductibles
-drugs dispensed through participating pharmacies
-drugs dispensed through online pharmacies - answerdrugs dispensed through
participating pharmacies
Who typically makes the purchase payments in an individual annuity?
-Owner
-Trustee
-Insurer
-Beneficiary - answerOwner
An agent whose actions exceed the authority granted by the contract is
-acting under apparent authority
, -acting under implied authority
-not backed by the insurer
-backed by the insurer - answernot backed by the insurer
When disability buy-sell insurance benefits exceed a partner's cost basis, which of the
following is correct?
-The excess is taxed as a capital gain to the partner
-The excess is taxed as ordinary income to the partner
-The excess is partially taxable to the partner
-The full amount is non-taxable to the partner - answerThe full amount is non-taxable to
the partner
The Genetic Information Nondiscrimination Act of 2008 bars all of the following,
EXCEPT:
-prohibits group health plans and health insurers from denying coverage to a healthy
individual
-charging that person higher premiums based solely on a genetic predisposition to
developing a disease in the future
-bars the use of genetic information in health insurance
-prohibits the use of genetic information in health insurance, unless the applicant signs
a waiver - answerprohibits the use of genetic information in health insurance, unless the
applicant signs a waiver
Bryce purchased a disability income policy with a rider that guarantees him the option of
purchasing additional amounts of coverage at predetermined times without requiring to
provide evidence of insurability. What kind of rider is this?
-Guaranteed insurability rider
-Additional coverage rider
-Paid-up option rider
-Extended insurability rider - answerGuaranteed insurability rider
Which of the following statements about universal life insurance is NOT true?
-Death benefit can be increased
-Premiums are flexible
-Universal life insurance normally has a minimum guaranteed cash value for the
duration of the policy
-The cash value interest rate must equal or exceed a guaranteed minimum value -
answerUniversal life insurance normally has a minimum guaranteed cash value for
duration of the policy
What is the maximum number of employees (earning at least $5,000) that an employer
can have in order to start a SIMPLE retirement plan?
