Pearson Vue Comprehensive Exam Part 2
c. The Interest credited to the policy is based off of the performance of a stock market
index life the S&P 500 - ANS-Which of the following statements about Equity Indexed
Life insurance is TRUE?
a. The policyowner can decide which separate accounts to invest the policy's cash
values into
b. The insured/owner bears all risk regarding cash surrender value, as negative stock
market performance can cause the cash values to decrease
c. The interest credited to the policy is based off of the performance of a stock market
index like the S&P 500
d. To sell Equity Indexed Life, a producer only needs a securities license
a. Single Premium Immediate Annuity - ANS-Susan, age 65, inherits a substantial sum
of money and wants to have the money distributed to her over the rest of her life starting
next month. Which product offered by the life insurance industry will allow her to
accomplish her objective?
a. Single Premium Immediate Annuity
b. Single Premium Deferred Annuity
c. Flexible Premium Deferred Annuity
d. Flexible Premium Immediate Annuity
a. Life Only - ANS-All of the following annuity income benefits payouts options will affect
the amount or duration of payout, except for:
a. Life Only
b. Interest Only
c. Fixed Amount
d. Fixed Period
d. Insurers - ANS-____________ manufacture and sell insurance coverage in the form
of policies or contracts of insurance.
a. Insureds
b. Producers
c. Agencies
d. Insurers
d. Life Income - ANS-James is nearing retirement and has accumulated $175,000 in an
annuity. He wants the largest possible monthly benefit for as long as he lives. Which
option should he choose?
, a. Fixed Amount
b. Life Income with Refund
c. Joint Life
d. Life Income
a. Establishing new insurance laws - ANS-Which of the following is not one of the
Insurance Commissioner's duties?
a. Establish new insurance law
b. Conducting investigations
c. Issuing Certificates of Authority
d. Examining Insurers
c. As long as there is sufficient cash value to cover policy expenses due, the insured is
not required to pay the planned premium - ANS-Which of the following is a true
characteristic of a Variable Universal Life Policy.
a. The insurer bears all risks in accumulating cash value
b. The policy has a fixed premium schedule
c. As long as there is sufficient cash value to cover policy expenses due, the insured is
not required to pay the planned premium
d. The policy requires only a life license to sell
d. At least 6 credits earned in the calendar quarters prior to death, disability, or is
entitled to retirement benefits - ANS-What is the minimum requirement for currently
insured status under the Social Security system?
a. Have 40 quarters of covered employment
b. Have no had a previous Social Security claim
c. Earned more than minimum wage
d. At least 6 credits earned in the 13 calendar quarters prior to death, disability, or is
entitled to retirement benefits
b. Employer paid group life insurance premium up to $50,000 of coverage - ANS-The
exception to the rule concerning the non-deductibility of life insurance premiums is:
a. Key Employee Insurance
b. Employer paid group life insurance premium up to $50,000 of coverage
c. Life insurance to fund a Buy-Sell Agreement
d. Third-Party Ownership Policies
a. Higher - ANS-K owns a variable annuity with an assumed interest rate of 4%. If the
actual performance of the separate account is 5%, the affect on this month's income
benefit check will be ________:
c. The Interest credited to the policy is based off of the performance of a stock market
index life the S&P 500 - ANS-Which of the following statements about Equity Indexed
Life insurance is TRUE?
a. The policyowner can decide which separate accounts to invest the policy's cash
values into
b. The insured/owner bears all risk regarding cash surrender value, as negative stock
market performance can cause the cash values to decrease
c. The interest credited to the policy is based off of the performance of a stock market
index like the S&P 500
d. To sell Equity Indexed Life, a producer only needs a securities license
a. Single Premium Immediate Annuity - ANS-Susan, age 65, inherits a substantial sum
of money and wants to have the money distributed to her over the rest of her life starting
next month. Which product offered by the life insurance industry will allow her to
accomplish her objective?
a. Single Premium Immediate Annuity
b. Single Premium Deferred Annuity
c. Flexible Premium Deferred Annuity
d. Flexible Premium Immediate Annuity
a. Life Only - ANS-All of the following annuity income benefits payouts options will affect
the amount or duration of payout, except for:
a. Life Only
b. Interest Only
c. Fixed Amount
d. Fixed Period
d. Insurers - ANS-____________ manufacture and sell insurance coverage in the form
of policies or contracts of insurance.
a. Insureds
b. Producers
c. Agencies
d. Insurers
d. Life Income - ANS-James is nearing retirement and has accumulated $175,000 in an
annuity. He wants the largest possible monthly benefit for as long as he lives. Which
option should he choose?
, a. Fixed Amount
b. Life Income with Refund
c. Joint Life
d. Life Income
a. Establishing new insurance laws - ANS-Which of the following is not one of the
Insurance Commissioner's duties?
a. Establish new insurance law
b. Conducting investigations
c. Issuing Certificates of Authority
d. Examining Insurers
c. As long as there is sufficient cash value to cover policy expenses due, the insured is
not required to pay the planned premium - ANS-Which of the following is a true
characteristic of a Variable Universal Life Policy.
a. The insurer bears all risks in accumulating cash value
b. The policy has a fixed premium schedule
c. As long as there is sufficient cash value to cover policy expenses due, the insured is
not required to pay the planned premium
d. The policy requires only a life license to sell
d. At least 6 credits earned in the calendar quarters prior to death, disability, or is
entitled to retirement benefits - ANS-What is the minimum requirement for currently
insured status under the Social Security system?
a. Have 40 quarters of covered employment
b. Have no had a previous Social Security claim
c. Earned more than minimum wage
d. At least 6 credits earned in the 13 calendar quarters prior to death, disability, or is
entitled to retirement benefits
b. Employer paid group life insurance premium up to $50,000 of coverage - ANS-The
exception to the rule concerning the non-deductibility of life insurance premiums is:
a. Key Employee Insurance
b. Employer paid group life insurance premium up to $50,000 of coverage
c. Life insurance to fund a Buy-Sell Agreement
d. Third-Party Ownership Policies
a. Higher - ANS-K owns a variable annuity with an assumed interest rate of 4%. If the
actual performance of the separate account is 5%, the affect on this month's income
benefit check will be ________:
