State exam simulator- weighted exam Questions and Answers 100% Accurate

The IRS has a "minimum coverage" rule regarding qualified retirement plans. This rule states that each qualified plan is required to - ANSWER-Benefit a braid cross-section of employees Which of these is NOT an unfair claim settlement practice - ANSWER-Refusing to pay persons bringing false or fraudulent claims Tom the agent negotiates an agreement that unreasonably restrains the business of insurance. He has likely committed a violation of insurance law that falls under - ANSWER-Boycott, coercion and intimidation Which of these is an accurate statement regarding the fixed period settlement option on a life insurance policy? - ANSWER-A portion of the payments paid to the beneficiary comes from interest calculated on the proceeds of the policy U see federal law, which of the following actions may result in a producer becoming imprisoned? - ANSWER-Producer embezzling funds from an insurer Which of the following is generally a form of group credit life insurance? - ANSWER-Decreasing term insurance Who normally pays the premium for group credit life insurance - ANSWER-Borrower A transaction in which a new annuity is purchased and an old one is terminated is called - ANSWER-Replacement In what way is a life insurance policy affected by an accelerated benefit payment? - ANSWER-Decreases the death benefit What is considered a valid reason for small corporations to insure the lives of its major stockholders? - ANSWER-Fund a buy-sell agreement Which of the following statements about universal life insurance is NOT true? - ANSWER-Universal life insurance normally has a minimum guaranteed cash value for duration of the policy A teacher recently retired at age 63 and has a tax sheltered annuity (TSA). Periodic deposits total $120,000 and the value of the contract is now worth $200,000. How much is taxed if the current value is surrendered today? - ANSWER-$200,000 Switching Life insurance policies without tax consequence is permitted under - ANSWER-Section 1035 rules Which of the following is BOT guaranteed in a whole life policy? - ANSWER-Dividend scale