Life and Disability Producer Combo Practice Questions with Certified Answers

Life and Disability Producer Combo Practice Questions with Certified Answers The premium payment mode that results in the highest overall cost would be Monthly A policyowner is prohibited from making any changes to the policy without the beneficiary's written consent under which beneficiary designation? Irrevocable beneficiary Over the course of a year, which premium payment mode is most expensive? Monthly Purchasing a life insurance policy in order to avoid the forced sale of assets upon death is called Estate conservation What is created after policy proceeds are obtained in a lump sum and then immediately invested? Estate Tonya has replaced her whole life policy with an annuity without incurring a tax penalty. This transaction is called a(n) 1035 Exchange Which settlement option involves having the proceeds remain with the insurer and earnings paid on a monthly basis to the beneficiary? Interest only What happens to the total amount of premium paid for an insurance policy when the payment frequency increases? Increases Sharon is the policyowner of a $50,000 life insurance policy. Her son, Mike, is the beneficiary. If Sharon MUST obtain Mike's signature in order to change the beneficiary, what kind of beneficiary designation is this? Irrevocable Elizabeth is the beneficiary of a life insurance policy. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. Which option was chosen? Fixed amount An example of naming a beneficiary by class would be "To the children born of my union with Ned Jackson" A beneficiary just received a claim payment for a life insurance policy. Which of the following is TRUE regarding the federal income tax liability owed? No federal income tax is owed on life insurance proceeds Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? Contingent beneficiary Proceeds from a life insurance policy are protected from the beneficiary's creditors by which clause? Spendthrift trust clause Which of these is affected by the frequency of an insurance policy's premium payments? Cost Mortality is calculated by using a large risk pool of People and time What would be an expense factor in an insurance program? Mortality costs Pat is insured with a life insurance policy and Karen is his primary beneficiary. They are both involved in an automobile accident where Pat dies instantly and Karen dies 5 days later. Which policy provision will protect the rights of the contingent beneficiary to receive the policy benefits? Common disaster clause