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In general, what is the earliest age at which a person can take a distribution from a qualified plan without a tax penalty? - CORRECT ANS 59 1/2 Carol was 35 when she bought her deferred annuity. Now, at age 38, she wants to withdraw funds from the contract to take a vacation. Carol is likely to encounter all of the following consequences in making the withdrawal EXCEPT: - CORRECT ANS statutory minimum withholding requirements What kind of misrepresentation on an insurance application give...

Risk - CORRECT ANS Chance of loss 5 Risk or Loss Factors - CORRECT ANS 1. Risk 2. Loss 3. Exposure 4. Peril 5. Hazard Insurance allows: - CORRECT ANS Individual or group to transfer over to insurance company the risk of financial loss from a destructive event Fundamental purpose of insurance is: - CORRECT ANS To indemnify policyholder against covered losses or restore policyholder back to same financial position they were in before Insurance companies may used term risks to refer to insu...

which of the following situations presents a situation of pure risk? -knowing that his family is depending on him, Frank wants to insure his life -wanting to increase his retirement savings, Saul invests his life savings in the stock market -Ralph takes a second mortgage on his house and uses the proceeds to gamble -wanting better job security, Ron cashes in his life insurance to start his own business - CORRECT ANS knowing that his family is depending on him, Frank wants to insure his ow...

1. which of the following situations presents a situation of pure risk? -knowing that his family is depending on him, Frank wants to insure his life -wanting to increase his retirement savings, Saul invests his life savings in the stock market -Ralph takes a second mortgage on his house and uses the proceeds to gamble -wanting better job security, Ron cashes in his life insurance to start his own business: knowing that his family is depending on him, Frank wants to insure his own life o...

webce ACTUAL QUESTIONS AND ANSWERS 2023webce ACTUAL QUESTIONS AND ANSWERS 2023 1. which of the following situations presents a situation of pure risk? -knowing that his family is depending on him, Frank wants to insure his life -wanting to increase his retirement savings, Saul invests his life savings in the stock market -Ralph takes a second mortgage on his house and uses the proceeds to gamble -wanting better job security, Ron cashes in his life insurance to start his own business: kno...

Risk CORRECT ANSWERS: chance of loss Loss CORRECT ANSWERS: an unplanned reduction in economic value What risk is insurable? CORRECT ANSWERS: pure risk What are the two types of risk? CORRECT ANSWERS: pure risk and speculative risk Involves the possibility of a loss? CORRECT ANSWERS: pure risk Can result in either loss or gain? CORRECT ANSWERS: speculative risk Loss CORRECT ANSWERS: an unplanned reduction in economic value Direct loss CORRECT ANSWERS: immediate result...

Risk CORRECT ANSWERS: Chance of loss 5 Risk or Loss Factors CORRECT ANSWERS: 1. Risk 2. Loss 3. Exposure 4. Peril 5. Hazard Insurance allows: CORRECT ANSWERS: Individual or group to transfer over to insurance company the risk of financial loss from a destructive event Fundamental purpose of insurance is: CORRECT ANSWERS: To indemnify policyholder against covered losses or restore policyholder back to same financial position they were in before Insurance companies may used term ri...

Risk CORRECT ANSWERS: Chance of loss Loss CORRECT ANSWERS: Unplanned reduction of economic value Peril CORRECT ANSWERS: cause of loss Hazard CORRECT ANSWERS: a condition that increases the chance of peril Risk Transfer CORRECT ANSWERS: buying insurance to shift the risk to insurance company Underwriting CORRECT ANSWERS: assessing applicant to determine insurability Adverse Selection CORRECT ANSWERS: people with greater risk of loss trying to buy insurance Mutual Compa...

Annuitization is CORRECT ANSWERS: Accumulated values are converted into a stream of periodic income payments. How often can payments of annuities be paid out? CORRECT ANSWERS: A specified term of years, for life, or a combination of the two. What is the reason (how has a consumer's priorities and needs shifted) that annuities are well suited for late-life retirement planning? CORRECT ANSWERS: When a consumer priorities and needs typically shift from asset accumulation to income distrib...

Indirect Loss CORRECT ANSWERS: A secondary loss that follows from a direct loss to insured property from a covered peril. Ex. Hotel expenses incurred by the insured while a fire-damaged home is repaired is an indirect loss that follows the direct loss of the home. Exclusive Agency System CORRECT ANSWERS: An insurance distribution system in which producers (agents) represent a single company. Ex. In the exclusive agency system, insurers use independent contractors (exclusive agents) that r...