IWEBCE Practice Exam 100 q|Latest Update

IWEBCE Practice Exam 100 q|Latest Update n general, what is the earliest age at which a person can take a distribution from a qualified plan without a tax penalty? 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: statutory minimum withholding requirements What kind of misrepresentation on an insurance application gives the insurer reason to terminate a policy? material fact Which of the following riders attached to Debra's life insurance policy provides for a monthly income to be paid if she becomes disabled? disability income benefit rider In calculating their life insurance premiums, which of the following statements generally guides insurance companies in determining the "loading" factor? Total loading from all policies should cover total operating costs, provide a safety margin, and contribute to profits or surplus. What is the main difference between ordinary whole life and limited payment whole life insurance? the length of time that the insured must pay premiums Abby lives in New Mexico, where she is licensed as an insurance agent and wants to apply for a nonresident license in Arizona. She holds a current license in good standing in New Mexico. When applying for a license in Arizona, Abby must prove her citizenship by submitting: a valid driver's license Matt takes out a life insurance policy on himself to protect his family. Matt's insurance company may consider all of the following when underwriting his policy EXCEPT: his race Under which of the following do the cash values and death benefits rise and fall on the basis of the policy's subaccount investment performance, and for which the insurer does not guarantee a rate of return on the cash value invested? variable life To help determine how much life insurance a prospect needs, agent Smith uses the human life value approach which is essentially based on an estimate of the prospect's: net future earnings discounted to a present value Which one of the following statements about Multiple Employer Welfare Arrangements (MEWAs) is most correct? They are usually created by employers in the same industry. Which of the following best describes income payments under the period certain payout option? the longer the payout period, the smaller the amount of each monthly payment Delta Co. buys a group life insurance policy for its employees. As the plan sponsor, what will Delta receive? a policy Margie owns a fixed life insurance policy. What type of death benefit is Margie guaranteed? The policy guarantees a fixed amount. What is the minimum grace period required for payment on an annuity? 30 days Which one of the following has more than "an expectancy" that he or she will receive the death benefit under a life insurance policy? an irrevocable beneficiary An agent for ABC Insurance Company meets with a client. The agent shows the client ABC's sample policies, refers to the ABC rate book, and gives the client an ABC business card. The client assumes that ABC has appointed the agent to represent it. What kind of authority does the agent have? apparent authority Which statement about variable annuity subaccounts is NOT correct? The insurer selects the variable subaccounts to which the contract owner's premiums are allocated. Stephanie is hired by ABC Insurance Company's home office. She does not have an insurance producer's license. Which of the following duties may she perform for ABC? mail company correspondence for the president The life insurance nonforfeiture option that results in the permanent continuation of cash value life insurance with no further premiums is called the: reduced paid-up option A life insurance policy may accelerate payment of the death benefit for any of the following reasons EXCEPT: partial, temporary disability The formal name for what is commonly called a 'double indemnity' rider is: accidental death benefit rider Which of the following statements about life insurance accelerated living benefits riders or provisions is correct? They let the insured access a portion of the policy's face amount while still alive. A worker can also choose to collect permanently reduced Social Security benefits as early as what age? 62 Stuart states that he is 30 years old in a life insurance application, though he is 35. What will the insurer do when this misstatement is discovered? reduce the policy face amount John, age 62, retired early and is receiving Social Security retirement benefits. He has one child, Sara, age 16. What will happen if Sara is in a car accident and becomes disabled? Sara will be eligible to receive a monthly Social Security benefit until her disability ends, whatever age that may be. What term is used to describe the monthly income amount a fixed annuity could provide per $1,000 of accumulated value? annuity purchase rate What must an annuity owner do to withdraw funds from his or her annuity contract? request it from the insurer The entire contract provision specifies that all statements the policyowner makes in the application are considered which of the following? representations In general, life insurance death benefits paid to a beneficiary in a lump sum are not taxed. Which statement is correct if the payout option is other than a lump sum? Interest earnings are taxable income to the beneficiary. Which of the following statements most correctly describes the relationship, if any, between the application and the insurance contract? The application is part of the entire contract. What is the primary difference between a revocable and an irrevocable beneficiary? the policyowner's ability or inability to change the beneficiary designation All the following statements regarding annuity death benefits are correct EXCEPT: Annuity death benefits are income tax-free. Bob owns a whole life insurance policy that pays $400 in policy dividends this year. He decides to use the $400 to purchase additional whole life insurance. Which of the following has Bob selected as a dividend option? paid-up additions Able Life Insurance Co. receives proofs of loss with a claim for benefits on April 1. It must settle the claim no later than what date?