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NSG 320 Package Deal Actual Exam Newest
2025/2026 With Complete Questions And Correct
Answers |Already Graded A+||Brand New
Version!|
Jane works for a company that allows employee
contributions under a 401(k) plan. When will Jane become
fully vested in her plan contributions? - . . ANSWER ✔
✔immediately//While employer contributions to a
qualified plan can be subject to a vesting schedule,
participants are always fully vested in their own
contributions.
Agents must act in the best interests of applicants and
insureds. What does this require them to do? - . .
ANSWER ✔ ✔give all important information about a
proposed policy//Agents must act in the applicant's or
insured's best interests at all times. This means that agents
must give all important information about a proposed
policy. Also, they cannot misrepresent the terms or
conditions of a proposed policy.
What does a viatical settlement allow? - . . ANSWER ✔
✔It allows a chronically or terminally ill insured to gain a
sum of money that is needed to pay medical expenses or to
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enhance the quality of life.//A viatical settlement allows a
chronically or terminally ill insured to gain a sum of
money that might be needed to pay medical expenses or to
enhance quality of life.
If an employer/employee group offers group life insurance
on a contributory basis, what percentage of the group must
enroll? - . . ANSWER ✔ ✔At least 75 percent of the
group must enroll in the plan//If an employer/employee
group life insurance plan is contributory, 75 percent of the
group must enroll in the plan. If the plan is non-
contributory, 100 percent of the group must enroll.
Which of the following is NOT a life insurance premium? -
. . ANSWER ✔ ✔competitors' rates//Actuaries base life
insurance premiums on three basic factors: mortality (a
charge), interest (a credit), and expenses (a charge).
In calculating their mortality charges, life insurers today
generally use: - . . ANSWER ✔ ✔the 2001 CSO
table//The mortality factor is drawn from mortality
statistics compiled by the National Association of
Insurance Commissioners (NAIC) into a set of rates called
the Commissioners Standard Ordinary (CSO) table.
Policies issued since 2009 are required to base their
mortality charges on the 2001 CSO table.
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All of the following are standard life insurance policy
nonforfeiture options EXCEPT: - . . ANSWER ✔
✔accumulate at interest option//This is a policy dividend
option in which declared dividends are left with the
insurer to accumulate interest on the policyowner's behalf.
Which of the following most correctly describes the
nonforfeiture option(s) available with universal life
insurance? - . . ANSWER ✔ ✔surrender the policy for
its cash value or stop paying premiums and continue
coverage as long as the cash value will support
it//Universal life policies do not contain the standard
nonforfeiture options. Instead, the policyowner can either
surrender the policy for its cash value or continue coverage
with no further premium payments, in which case
coverage will last for as long as the cash value is able to
support the policy's monthly mortality and expense charge
deductions.
James wants to convert his $150,000 traditional IRA to a
Roth IRA. What best describes the tax treatment for the
Roth conversion? - . . ANSWER ✔ ✔The converted
funds are taxed, but Roth IRA earnings and distribution
will be tax free.//The $150,000 from the traditional IRA
has been deferred so it will be taxed upon conversion.
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However, as long as James holds the new Roth IRA for at
least five years and is older than 59', distributions from the
Roth IRA will be tax free.
Under variable life insurance plans, policy loans can be as
high as what percent of the cash value? - . . ANSWER ✔
✔75 to 90 percent//Policy loans under traditional whole
life insurance plans can be as high as 100 percent of the
cash value, but with variable life insurance the maximum
loan amount is something less than the full cash value
(e.g., 75 to 90 percent of the cash value), less any debt
currently outstanding against the policy.
Under which nonforfeiture option does permanent life
insurance continue in force with no further need for
premiums? - . . ANSWER ✔ ✔reduced paid-up
option//A paid-up policy under the reduced paid-up
option requires no further premiums (nor can any be
paid). The paid-up policy retains a cash value that will
continue to grow throughout the life of the policy.
However, it will grow much more slowly than during the
period that premiums were being paid.
Which of the following can be funded with a single
premium payment, a series of fixed premium payments, or
flexible premium payments? - . . ANSWER ✔ ✔deferred
NSG 320 Package Deal Actual Exam Newest
2025/2026 With Complete Questions And Correct
Answers |Already Graded A+||Brand New
Version!|
Jane works for a company that allows employee
contributions under a 401(k) plan. When will Jane become
fully vested in her plan contributions? - . . ANSWER ✔
✔immediately//While employer contributions to a
qualified plan can be subject to a vesting schedule,
participants are always fully vested in their own
contributions.
Agents must act in the best interests of applicants and
insureds. What does this require them to do? - . .
ANSWER ✔ ✔give all important information about a
proposed policy//Agents must act in the applicant's or
insured's best interests at all times. This means that agents
must give all important information about a proposed
policy. Also, they cannot misrepresent the terms or
conditions of a proposed policy.
What does a viatical settlement allow? - . . ANSWER ✔
✔It allows a chronically or terminally ill insured to gain a
sum of money that is needed to pay medical expenses or to
,2|Page
enhance the quality of life.//A viatical settlement allows a
chronically or terminally ill insured to gain a sum of
money that might be needed to pay medical expenses or to
enhance quality of life.
If an employer/employee group offers group life insurance
on a contributory basis, what percentage of the group must
enroll? - . . ANSWER ✔ ✔At least 75 percent of the
group must enroll in the plan//If an employer/employee
group life insurance plan is contributory, 75 percent of the
group must enroll in the plan. If the plan is non-
contributory, 100 percent of the group must enroll.
Which of the following is NOT a life insurance premium? -
. . ANSWER ✔ ✔competitors' rates//Actuaries base life
insurance premiums on three basic factors: mortality (a
charge), interest (a credit), and expenses (a charge).
In calculating their mortality charges, life insurers today
generally use: - . . ANSWER ✔ ✔the 2001 CSO
table//The mortality factor is drawn from mortality
statistics compiled by the National Association of
Insurance Commissioners (NAIC) into a set of rates called
the Commissioners Standard Ordinary (CSO) table.
Policies issued since 2009 are required to base their
mortality charges on the 2001 CSO table.
,3|Page
All of the following are standard life insurance policy
nonforfeiture options EXCEPT: - . . ANSWER ✔
✔accumulate at interest option//This is a policy dividend
option in which declared dividends are left with the
insurer to accumulate interest on the policyowner's behalf.
Which of the following most correctly describes the
nonforfeiture option(s) available with universal life
insurance? - . . ANSWER ✔ ✔surrender the policy for
its cash value or stop paying premiums and continue
coverage as long as the cash value will support
it//Universal life policies do not contain the standard
nonforfeiture options. Instead, the policyowner can either
surrender the policy for its cash value or continue coverage
with no further premium payments, in which case
coverage will last for as long as the cash value is able to
support the policy's monthly mortality and expense charge
deductions.
James wants to convert his $150,000 traditional IRA to a
Roth IRA. What best describes the tax treatment for the
Roth conversion? - . . ANSWER ✔ ✔The converted
funds are taxed, but Roth IRA earnings and distribution
will be tax free.//The $150,000 from the traditional IRA
has been deferred so it will be taxed upon conversion.
, 4|Page
However, as long as James holds the new Roth IRA for at
least five years and is older than 59', distributions from the
Roth IRA will be tax free.
Under variable life insurance plans, policy loans can be as
high as what percent of the cash value? - . . ANSWER ✔
✔75 to 90 percent//Policy loans under traditional whole
life insurance plans can be as high as 100 percent of the
cash value, but with variable life insurance the maximum
loan amount is something less than the full cash value
(e.g., 75 to 90 percent of the cash value), less any debt
currently outstanding against the policy.
Under which nonforfeiture option does permanent life
insurance continue in force with no further need for
premiums? - . . ANSWER ✔ ✔reduced paid-up
option//A paid-up policy under the reduced paid-up
option requires no further premiums (nor can any be
paid). The paid-up policy retains a cash value that will
continue to grow throughout the life of the policy.
However, it will grow much more slowly than during the
period that premiums were being paid.
Which of the following can be funded with a single
premium payment, a series of fixed premium payments, or
flexible premium payments? - . . ANSWER ✔ ✔deferred
