Indiana Life Insurance Exam
A agreement bought via an coverage enterprise that guarantees to pay an income to the
policyowner till his/her loss of life is known as a:
a. Survivorship Life
b. Family Income Policy
c. Straight Life Annuity
d. Modified Endowment - ANS-C. Straight Life Annuity
A Family coverage is constructed the usage of what two forms of Life coverage merchandise?
A. Whole Life and Decreasing Term
b. Convertible Term and Decreasing Term
c. Whole Life and Level Term
d. Whole Life and Convertible Term - ANS-Whole Life & Convertible Term
A complete traces Producer renewing a two 12 months license ought to have
a. 24 Hours of Continuing training
b. 10 Hours of Continuing training.
C. 15 Hours of Continuing schooling.
D. 30 Hours of Continuing training - ANS-24 Hours of Continuing Education
A Keogh plan would permit an annual contribution of up to
a. 20 percentage of overall earned earnings.
B. 10 percentage of overall earned profits.
C. 15 percentage of general earned income.
D. 30 percentage of total earned income. - ANS-20% of overall earned income
Maximum annual contributions are constrained to the lesser of $30,000 or 20 percentage of
general earned profits (25% of the after-contribution income).
A life coverage death advantage is
a. Always credited as earnings and taxed at the deceased's very last earnings tax return.
B. Not subject to Federal earnings tax.
C. Subject to Federal Income tax at the increase, but now not at the premium bucks paid.
D. Taxed as everyday income to the beneficiary. - ANS-Not subject to Federal Income Tax
The reality that the demise advantage of a existence coverage paid to the beneficiary is NOT
taxed is one of the fundamental benefits of existence insurance.
,A existence coverage policy that has cash fee which grows faster than the coins value of a
Seven Pay Whole Life coverage is called
a. An Endowment policy.
B. Modified Life policy.
C. A Modified Endowment Contract.
D. A Modified Superstock Pro. - ANS-A Modified Endowment Contract
A Multiple Indemnity rider does which of the subsequent?
A. Waives the top rate at the coverage if the insured need to come to be disabled.
B. Pays an quantity similarly to the demise benefit if the insured dies in an coincidence.
C. Pays an same amount to a more than one number of beneficiaries.
D. Pays an quantity similarly to the loss of life advantage if the insured dies before age 60 or 65.
- ANS-Pays an quantity further to the demise gain if the insured dies in an twist of fate.
A Producer may additionally accumulate both a consulting charge and a fee inside the identical
transaction if
a. The Producer is likewise licensed as a surplus traces Producer.
B. The Producer is also licensed as a representative.
C. The Producer is also a certified dealer.
D. The Producer makes full disclosure in writing approximately the reimbursement preparations
previous to the time that the transaction happens. - ANS-The manufacturer makes complete
disclosure in writing about the reimbursement arrangements previous to the time that the
transaction takes place.
A Producer won't be licensed as a consultant, however, a Producer may also act as a consultant
if they comply with the proper approaches, together with complete disclosure of the
compensation preparations.
A rated person can not select which of the following alternatives?
A. Paid-up Additions.
B. Extended Term.
C. Reduced Paid-up.
D. Cash. - ANS-Extended Term
A rated character represents an adverse choice hazard. If we allowed them to choose Extended
Term as a Nonforfeiture alternative, it method they might have the same stage of demise benefit
with out paying extra premium greenbacks.
A Renewable Term lifestyles coverage policy is:
,a. Renewable every now and then up to a sure age with renewal top rate based at the insured's
attained age.
B. Automatically transformed into Whole Life after a chosen period of time.
C. Renewable as long as the insured can provide proof of insurability.
D. Renewable at any age through age one hundred. - ANS-A. Renewable now and again up to
a certain age with renewal top class based totally at the insured's attained age.
A Straight Life Annuity can pay
a. Until age one hundred.
B. Only upon the loss of life of the annuitant.
C. Until the cash in the annuity is long gone.
D. Throughout the life of the annuitant. - ANS-Throughout the life of the annuitant
A Term insurance policy in which the demise advantage stays regular is referred to as
a. Decreasing Term.
B. Level premium Term.
C. Level Term.
D. Increasing Term. - ANS-Level Term
Increasing Term: face amount will increase over time. Decreasing term: face amount goes down
over time. Level: constant... The face quantity would not exchange through the years. Level top
rate: here the emphasis is on the PREMIUM, not the face amount, so the top class is stage at
some stage in the life of the policy.
A Term coverage coverage presents
a. Death gain however no cash fee.
B. Cash price but no death benefit.
C. Cash value plus a death benefit.
D. A assured retirement profits. - ANS-Death Benefit but no coins price
Unlike Whole Life regulations, Term coverage rules do now not have cash fee.
A form of Annuity wherein the cash values are invested in securities is called:
a. Variable
b. Deferred
c. Joint and Survivorship
d. Flexible top class - ANS-Variable
, A form of Term Life Insurance that permits the policyowner to re-qualify for a decrease top rate
fee through passing a bodily examination on occasion is called:
a. Re-entry Term
b. Renewable Term
c. Convertible Term
d. Decreasing Premium Term - ANS-A. Re-access Term
A Whole Life policy matures at age 100. The tax implications for the policyowner/insured are
that he/she
a. Will be taxed at the entire cost of the policy.
B. Will be taxed most effective on the interest bucks that grew within the policy, not the premium
bucks paid.
C. Will be taxed and pay a ten% penalty
d. Will now not be taxed in any respect. - ANS-Will be taxed best on the interest dollars that
grew inside the policy, now not the top rate bucks paid.
If a policyowner/insured lived to age one hundred, the policy might ENDOW and the insurance
corporation would pay the face quantity of the policy to the policyowner. However, it's miles NOT
a death advantage, and therefore is NOT tax free. The policyowner would be taxed on the
hobby earned on the coverage.
Agent Steve takes a pay as you go application from applicant Cindy and problems a 30 day
Interim Term coverage receipt to Cindy. The powerful date of the meantime coverage can be on
the:
a. Coverage delivery date.
B. Date of application or date of the medical exam, which ever occurs ultimate, if the proposed
insured is insurable on that key date.
C. Date of software.
D. Coverage problem date. - ANS-C. Date of Application
Al and Betty Franken desire to acquire a mortgage from Clamdigger's National Bank. The bank
desires them to insure the belongings that is to be mortgaged. Which is genuine concerning the
bank's request?
A. The financial institution can legally require that the assets be insured, however it can't require
that the coverage be bought from the bank.
B. The bank can legally require that the assets be insured, and that the insurance have to be
bought from the financial institution.
C. The financial institution cannot legally require that the property be insured, but it is able to
require that any insurance purchased at the belongings be bought from the financial institution.
A agreement bought via an coverage enterprise that guarantees to pay an income to the
policyowner till his/her loss of life is known as a:
a. Survivorship Life
b. Family Income Policy
c. Straight Life Annuity
d. Modified Endowment - ANS-C. Straight Life Annuity
A Family coverage is constructed the usage of what two forms of Life coverage merchandise?
A. Whole Life and Decreasing Term
b. Convertible Term and Decreasing Term
c. Whole Life and Level Term
d. Whole Life and Convertible Term - ANS-Whole Life & Convertible Term
A complete traces Producer renewing a two 12 months license ought to have
a. 24 Hours of Continuing training
b. 10 Hours of Continuing training.
C. 15 Hours of Continuing schooling.
D. 30 Hours of Continuing training - ANS-24 Hours of Continuing Education
A Keogh plan would permit an annual contribution of up to
a. 20 percentage of overall earned earnings.
B. 10 percentage of overall earned profits.
C. 15 percentage of general earned income.
D. 30 percentage of total earned income. - ANS-20% of overall earned income
Maximum annual contributions are constrained to the lesser of $30,000 or 20 percentage of
general earned profits (25% of the after-contribution income).
A life coverage death advantage is
a. Always credited as earnings and taxed at the deceased's very last earnings tax return.
B. Not subject to Federal earnings tax.
C. Subject to Federal Income tax at the increase, but now not at the premium bucks paid.
D. Taxed as everyday income to the beneficiary. - ANS-Not subject to Federal Income Tax
The reality that the demise advantage of a existence coverage paid to the beneficiary is NOT
taxed is one of the fundamental benefits of existence insurance.
,A existence coverage policy that has cash fee which grows faster than the coins value of a
Seven Pay Whole Life coverage is called
a. An Endowment policy.
B. Modified Life policy.
C. A Modified Endowment Contract.
D. A Modified Superstock Pro. - ANS-A Modified Endowment Contract
A Multiple Indemnity rider does which of the subsequent?
A. Waives the top rate at the coverage if the insured need to come to be disabled.
B. Pays an quantity similarly to the demise benefit if the insured dies in an coincidence.
C. Pays an same amount to a more than one number of beneficiaries.
D. Pays an quantity similarly to the loss of life advantage if the insured dies before age 60 or 65.
- ANS-Pays an quantity further to the demise gain if the insured dies in an twist of fate.
A Producer may additionally accumulate both a consulting charge and a fee inside the identical
transaction if
a. The Producer is likewise licensed as a surplus traces Producer.
B. The Producer is also licensed as a representative.
C. The Producer is also a certified dealer.
D. The Producer makes full disclosure in writing approximately the reimbursement preparations
previous to the time that the transaction happens. - ANS-The manufacturer makes complete
disclosure in writing about the reimbursement arrangements previous to the time that the
transaction takes place.
A Producer won't be licensed as a consultant, however, a Producer may also act as a consultant
if they comply with the proper approaches, together with complete disclosure of the
compensation preparations.
A rated person can not select which of the following alternatives?
A. Paid-up Additions.
B. Extended Term.
C. Reduced Paid-up.
D. Cash. - ANS-Extended Term
A rated character represents an adverse choice hazard. If we allowed them to choose Extended
Term as a Nonforfeiture alternative, it method they might have the same stage of demise benefit
with out paying extra premium greenbacks.
A Renewable Term lifestyles coverage policy is:
,a. Renewable every now and then up to a sure age with renewal top rate based at the insured's
attained age.
B. Automatically transformed into Whole Life after a chosen period of time.
C. Renewable as long as the insured can provide proof of insurability.
D. Renewable at any age through age one hundred. - ANS-A. Renewable now and again up to
a certain age with renewal top class based totally at the insured's attained age.
A Straight Life Annuity can pay
a. Until age one hundred.
B. Only upon the loss of life of the annuitant.
C. Until the cash in the annuity is long gone.
D. Throughout the life of the annuitant. - ANS-Throughout the life of the annuitant
A Term insurance policy in which the demise advantage stays regular is referred to as
a. Decreasing Term.
B. Level premium Term.
C. Level Term.
D. Increasing Term. - ANS-Level Term
Increasing Term: face amount will increase over time. Decreasing term: face amount goes down
over time. Level: constant... The face quantity would not exchange through the years. Level top
rate: here the emphasis is on the PREMIUM, not the face amount, so the top class is stage at
some stage in the life of the policy.
A Term coverage coverage presents
a. Death gain however no cash fee.
B. Cash price but no death benefit.
C. Cash value plus a death benefit.
D. A assured retirement profits. - ANS-Death Benefit but no coins price
Unlike Whole Life regulations, Term coverage rules do now not have cash fee.
A form of Annuity wherein the cash values are invested in securities is called:
a. Variable
b. Deferred
c. Joint and Survivorship
d. Flexible top class - ANS-Variable
, A form of Term Life Insurance that permits the policyowner to re-qualify for a decrease top rate
fee through passing a bodily examination on occasion is called:
a. Re-entry Term
b. Renewable Term
c. Convertible Term
d. Decreasing Premium Term - ANS-A. Re-access Term
A Whole Life policy matures at age 100. The tax implications for the policyowner/insured are
that he/she
a. Will be taxed at the entire cost of the policy.
B. Will be taxed most effective on the interest bucks that grew within the policy, not the premium
bucks paid.
C. Will be taxed and pay a ten% penalty
d. Will now not be taxed in any respect. - ANS-Will be taxed best on the interest dollars that
grew inside the policy, now not the top rate bucks paid.
If a policyowner/insured lived to age one hundred, the policy might ENDOW and the insurance
corporation would pay the face quantity of the policy to the policyowner. However, it's miles NOT
a death advantage, and therefore is NOT tax free. The policyowner would be taxed on the
hobby earned on the coverage.
Agent Steve takes a pay as you go application from applicant Cindy and problems a 30 day
Interim Term coverage receipt to Cindy. The powerful date of the meantime coverage can be on
the:
a. Coverage delivery date.
B. Date of application or date of the medical exam, which ever occurs ultimate, if the proposed
insured is insurable on that key date.
C. Date of software.
D. Coverage problem date. - ANS-C. Date of Application
Al and Betty Franken desire to acquire a mortgage from Clamdigger's National Bank. The bank
desires them to insure the belongings that is to be mortgaged. Which is genuine concerning the
bank's request?
A. The financial institution can legally require that the assets be insured, however it can't require
that the coverage be bought from the bank.
B. The bank can legally require that the assets be insured, and that the insurance have to be
bought from the financial institution.
C. The financial institution cannot legally require that the property be insured, but it is able to
require that any insurance purchased at the belongings be bought from the financial institution.
