A
VI
TU
IS
M
O
NY Life Insurance Exam
A
Review: Human Value
N
JP
Approach : All Questions
Answered CORRECTLY 100%
2025 UPDATE
,Based on the Human Life Value Approach, which of the following is NOT used to
calculate an individual's life value?
A. Insured's annual expenses
B. Effect of inflation on income over time
C. Predicted needs of the family after the insured's death
D. Insured's current and future income - ANSWER C. Predicted needs of the family
A
after the insured's death.
The Human Life Value Approach to determining the value of an individual's life requires
VI
the calculation of probable future earnings of the insured, which involves wages,
expenses, inflation, amount of time until retirement, and the time value of money.
Predicted needs of the family after the insured's death are used in the needs approach
TU
Can the Superintendent investigate fraudulent claims if they occurred outside of the
resident's state according to the Insurance Fraud Prevention Act?
A. Yes. The Superintendent has the power to make an investigation within this state or
IS
outside of the state
B. Yes, but only if it is a violation of another state's insurance law
C. No. Because insurance is regulated by the state, all claims must occur within state
M
boundaries
D. No. If fraudulent acts are believed to have been committed, the Superintendent must
notify the state's Superintendent or Commissioner. It will then become a federal matter -
O
ANSWER A. Yes. The Superintendent has the power to make an investigation within
this state or outside of the state
A
If the insurance frauds bureau has reason to believe that a person is engaged or is
about to engage in a fraudulent act, the Superintendent has the power to make an
investigation within this state or outside the state
N
Which settlement option allows the insurer to retain the face amount but pay some
JP
income based on gain on the proceeds to the beneficiary at regular intervals?
A. Interest only
B. Life income
C. Fixed amount
D. Fixed period - ANSWER A. Interest only
Within the "interest only" option, the insurer retains policy proceeds and pays interest on
the proceeds to the beneficiary at regular intervals. The insurer will usually guarantee
an interest rate and even pay in excess of the rate quoted
, In order to be a licensed life settlement broker, a person must complete which of the
following requirements?
A. Post a surety bond
B. Submit to a drug test
C. Submit fingerprints
D. Have been a licensed life producer for at least 6 months - ANSWER C. Submit
fingerprints
How long does a licensee have to notify the Superintendent of a change of address?
A
A. 90 days
B. Immediately
VI
C. 30 days
D. 60 days - ANSWER C. 30 days
The Superintendent must be notified within 30 days upon any of a change of primary
TU
residence or business address
Which of the following would be deducted from the death benefit paid to a beneficiary, if
a partial accelerated death benefit had been paid while the insured was still alive?
IS
A. Amount paid with the accelerated benefit, plus the earnings lost by the insurance
company in interest income from the accelerated benefit
B. There are no deductions taken from death benefits
C. Penalty imposed for early withdrawal of the death benefit, plus the amount of
M
earnings lost by the insurance company in interest income
C. 10% federal death benefit income tax, plus the amount of the accelerated benefit -
O
ANSWER A. Amount paid with the accelerated benefit, plus the earnings lost by the
insurance company in interest income from the accelerated benefit
If an insured withdraws a portion of the death benefit by the use of this rider, the benefit
A
payable at death will be reduced by that amount, plus the amount of earnings lost by the
insurance company in interest income
N
Which of the following statements concerning a Simplified Employee Pension plan
JP
(SEP) in INCORRECT?
A. SEPs allow the employer to make annual tax deductible contributions up to 25% of
an employee's earned income
B. SEPs have a higher tax deductible contribution limit than an IRA
C. Employer contributions are not included int he employee's gross income
D. SEPs are suitable for large companies - ANSWER D. SEPs are suitable for large
companies
VI
TU
IS
M
O
NY Life Insurance Exam
A
Review: Human Value
N
JP
Approach : All Questions
Answered CORRECTLY 100%
2025 UPDATE
,Based on the Human Life Value Approach, which of the following is NOT used to
calculate an individual's life value?
A. Insured's annual expenses
B. Effect of inflation on income over time
C. Predicted needs of the family after the insured's death
D. Insured's current and future income - ANSWER C. Predicted needs of the family
A
after the insured's death.
The Human Life Value Approach to determining the value of an individual's life requires
VI
the calculation of probable future earnings of the insured, which involves wages,
expenses, inflation, amount of time until retirement, and the time value of money.
Predicted needs of the family after the insured's death are used in the needs approach
TU
Can the Superintendent investigate fraudulent claims if they occurred outside of the
resident's state according to the Insurance Fraud Prevention Act?
A. Yes. The Superintendent has the power to make an investigation within this state or
IS
outside of the state
B. Yes, but only if it is a violation of another state's insurance law
C. No. Because insurance is regulated by the state, all claims must occur within state
M
boundaries
D. No. If fraudulent acts are believed to have been committed, the Superintendent must
notify the state's Superintendent or Commissioner. It will then become a federal matter -
O
ANSWER A. Yes. The Superintendent has the power to make an investigation within
this state or outside of the state
A
If the insurance frauds bureau has reason to believe that a person is engaged or is
about to engage in a fraudulent act, the Superintendent has the power to make an
investigation within this state or outside the state
N
Which settlement option allows the insurer to retain the face amount but pay some
JP
income based on gain on the proceeds to the beneficiary at regular intervals?
A. Interest only
B. Life income
C. Fixed amount
D. Fixed period - ANSWER A. Interest only
Within the "interest only" option, the insurer retains policy proceeds and pays interest on
the proceeds to the beneficiary at regular intervals. The insurer will usually guarantee
an interest rate and even pay in excess of the rate quoted
, In order to be a licensed life settlement broker, a person must complete which of the
following requirements?
A. Post a surety bond
B. Submit to a drug test
C. Submit fingerprints
D. Have been a licensed life producer for at least 6 months - ANSWER C. Submit
fingerprints
How long does a licensee have to notify the Superintendent of a change of address?
A
A. 90 days
B. Immediately
VI
C. 30 days
D. 60 days - ANSWER C. 30 days
The Superintendent must be notified within 30 days upon any of a change of primary
TU
residence or business address
Which of the following would be deducted from the death benefit paid to a beneficiary, if
a partial accelerated death benefit had been paid while the insured was still alive?
IS
A. Amount paid with the accelerated benefit, plus the earnings lost by the insurance
company in interest income from the accelerated benefit
B. There are no deductions taken from death benefits
C. Penalty imposed for early withdrawal of the death benefit, plus the amount of
M
earnings lost by the insurance company in interest income
C. 10% federal death benefit income tax, plus the amount of the accelerated benefit -
O
ANSWER A. Amount paid with the accelerated benefit, plus the earnings lost by the
insurance company in interest income from the accelerated benefit
If an insured withdraws a portion of the death benefit by the use of this rider, the benefit
A
payable at death will be reduced by that amount, plus the amount of earnings lost by the
insurance company in interest income
N
Which of the following statements concerning a Simplified Employee Pension plan
JP
(SEP) in INCORRECT?
A. SEPs allow the employer to make annual tax deductible contributions up to 25% of
an employee's earned income
B. SEPs have a higher tax deductible contribution limit than an IRA
C. Employer contributions are not included int he employee's gross income
D. SEPs are suitable for large companies - ANSWER D. SEPs are suitable for large
companies
