LA LIFE INSURANCE SERIES 101 EVALUATION TEST
UPDATED EXAM QUESTIONS AND ANSWERS GRADED A+
✔✔What is the name of a single policy covering two or more lives that pays benefits
upon the death of the first insured? - ✔✔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? - ✔✔Nothing
✔✔The _______ provision specifies what an insured must do if a policy has lapsed in
order to put it back in force? - ✔✔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? - ✔✔Collateral Assignment
✔✔All of the following are characteristics of a 401K plan, EXCEPT: - ✔✔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? - ✔✔Waiver
✔✔ERISA (Employee Retirement Income Security Act) is a ____________ law. -
✔✔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:
- ✔✔Begin paying the premiums as they become due.
✔✔Generally, Life Insurance death proceeds are income tax free to the policy
beneficiary, EXCEPT: - ✔✔When a transfer of ownership has taken place.
✔✔The cost of the Group Life insurance plan is determined by all of the following
EXCEPT one, is the least important of them all. Which one is that? - ✔✔The actual
overall health of the group.
✔✔John is the insured. His wife Mary is the primary beneficiary. Their three children are
the contingent beneficiaries. John and Mary are killed in a common accident. The
proceeds of John's policy would be paid to: - ✔✔The childern
, ✔✔K owns a Variable annuity with an assumed interest rate of 4%. If the actual
performance of the separate accounts is 4%, the affect on this months income benefit
check will be the__________. - ✔✔Same
✔✔Which of the following is not an essential element of an insurable risk? - ✔✔The loss
must be intentional.
✔✔Which rating classification is typically used in the senior marketplace so that policies
can be issued without a medical exam? - ✔✔The Lien Plan
✔✔What provision establishes that if both the insured an the primary beneficiary die in
the same accident and it cannot be determined who died first, the insured will be
presumed to have survived the beneficiary and proceeds will be paid to the named
contingent beneficiary of the insured or to the insured's estate? - ✔✔Common Disaster
Clause
✔✔Which of the following is standard industry practice for producers in order to prove
that they delivered the policy mailed to them from the insurer? - ✔✔Obtain a policy
delivery receipt from the Applicant whenever and wherever policy delivery takes place.
✔✔The Financial Privacy rule requires insurers to provide consumers with a privacy
notice: - ✔✔At the time the consumer relationship is established and annually
thereafter.
✔✔What is the intent of the suicide clause? - ✔✔To discourage individuals from
purchasing an insurance policy while contemplating suicide.
✔✔An annuity policyowner may do all the following, EXCEPT: - ✔✔Determine the
policy's interest credit.
✔✔Which of the following are FALSE regarding the Life and Health Insurance Guaranty
Association? - ✔✔An insurer has the option of becoming a member of the Association.
✔✔IRA's can be funded with all of the following, EXCEPT: - ✔✔Life Insurance
✔✔If a corporation owns a annuity, What is the tax ramifications? - ✔✔There is no tax
deferral benefit on any earnings.
✔✔The ________ Clause identifies the parties to the contract and the perils it covers. -
✔✔Insuring
✔✔If an annuity uses units instead of dollars to determine the value of the policy, then it
is a(n) _________ annuity. - ✔✔Variable
UPDATED EXAM QUESTIONS AND ANSWERS GRADED A+
✔✔What is the name of a single policy covering two or more lives that pays benefits
upon the death of the first insured? - ✔✔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? - ✔✔Nothing
✔✔The _______ provision specifies what an insured must do if a policy has lapsed in
order to put it back in force? - ✔✔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? - ✔✔Collateral Assignment
✔✔All of the following are characteristics of a 401K plan, EXCEPT: - ✔✔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? - ✔✔Waiver
✔✔ERISA (Employee Retirement Income Security Act) is a ____________ law. -
✔✔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:
- ✔✔Begin paying the premiums as they become due.
✔✔Generally, Life Insurance death proceeds are income tax free to the policy
beneficiary, EXCEPT: - ✔✔When a transfer of ownership has taken place.
✔✔The cost of the Group Life insurance plan is determined by all of the following
EXCEPT one, is the least important of them all. Which one is that? - ✔✔The actual
overall health of the group.
✔✔John is the insured. His wife Mary is the primary beneficiary. Their three children are
the contingent beneficiaries. John and Mary are killed in a common accident. The
proceeds of John's policy would be paid to: - ✔✔The childern
, ✔✔K owns a Variable annuity with an assumed interest rate of 4%. If the actual
performance of the separate accounts is 4%, the affect on this months income benefit
check will be the__________. - ✔✔Same
✔✔Which of the following is not an essential element of an insurable risk? - ✔✔The loss
must be intentional.
✔✔Which rating classification is typically used in the senior marketplace so that policies
can be issued without a medical exam? - ✔✔The Lien Plan
✔✔What provision establishes that if both the insured an the primary beneficiary die in
the same accident and it cannot be determined who died first, the insured will be
presumed to have survived the beneficiary and proceeds will be paid to the named
contingent beneficiary of the insured or to the insured's estate? - ✔✔Common Disaster
Clause
✔✔Which of the following is standard industry practice for producers in order to prove
that they delivered the policy mailed to them from the insurer? - ✔✔Obtain a policy
delivery receipt from the Applicant whenever and wherever policy delivery takes place.
✔✔The Financial Privacy rule requires insurers to provide consumers with a privacy
notice: - ✔✔At the time the consumer relationship is established and annually
thereafter.
✔✔What is the intent of the suicide clause? - ✔✔To discourage individuals from
purchasing an insurance policy while contemplating suicide.
✔✔An annuity policyowner may do all the following, EXCEPT: - ✔✔Determine the
policy's interest credit.
✔✔Which of the following are FALSE regarding the Life and Health Insurance Guaranty
Association? - ✔✔An insurer has the option of becoming a member of the Association.
✔✔IRA's can be funded with all of the following, EXCEPT: - ✔✔Life Insurance
✔✔If a corporation owns a annuity, What is the tax ramifications? - ✔✔There is no tax
deferral benefit on any earnings.
✔✔The ________ Clause identifies the parties to the contract and the perils it covers. -
✔✔Insuring
✔✔If an annuity uses units instead of dollars to determine the value of the policy, then it
is a(n) _________ annuity. - ✔✔Variable
