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Ohio Life Insurance Final Exam 100% VERIFIED..
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Ohio Life Insurance Final Exam 100%VERIFIED.
Which of the following is usually the owner of the annuity? - CORRECT
ANSWER-The annuitant
Which of the following is not true of the straight life income option for annuities? -
CORRECT ANSWER-A beneficiary will receive any balance of the annuity upon
the annuitant's death.
When an insurance policy is taken out, if the owner of the policy is someone
other than the actual insured, the owner must be able to prove: - CORRECT
ANSWER-That he/she has an insurable interest
Tax-sheltered annuities (TSA) provide retirement income for employees who
work for: - CORRECT ANSWER-A nonprofit organization
Which of the following statements regarding policy loans from personal life
insurance policies is not true? - CORRECT ANSWER-When a personal life
insurance policy endows, the amount of any unpaid loan plus interest is not
deducted from the policy proceeds.
When the only logical beneficiary is a minor, all of the following options are
available, EXCEPT: - CORRECT ANSWER-The benefits can go directly to the
estate of the insured
All of the following are major factors in the determination of premiums for life
insurance, EXCEPT: - CORRECT ANSWER-Marital status
Which of the following is true about policy loans? - CORRECT ANSWER-They
are subject to interest.
What requires that an individual have a valid concern for the continuation of the
life or well being of the person insured? - CORRECT ANSWER-Insurable interest
, Which of the following is true regarding taxes on nonqualified annuities? -
CORRECT ANSWER-Premiums are not tax-deductible, but interest is
tax-deferred
What is the time between when an annuity is purchased and the time when
benefits begin? - CORRECT ANSWER-The accumulation period
All of the statements are true about universal life policies, EXCEPT: - CORRECT
ANSWER-Universal life policies are only subject to the interest rates stated in the
contract.
Universal life policies allow the policyowner to: - CORRECT ANSWER-a. Take
out a policy loan
b. Withdraw cash
(Both)
All of the following are federal income tax free transactions for a life insurance
policy, EXCEPT: - CORRECT ANSWER-Gain on policy surrender value
Which of the following pertains to Modified Endowment Contracts (MECs)? -
CORRECT ANSWER-a. Once a MEC, always a MEC.
b. Funds withdrawn are subject to LIFO (Last in first out) tax treatment.
c. Any policy exchanged for an MEC is automatically classified as an MEC.
(all)
Which of the following is not an assignment whereby someone would transfer
legal rights as the policyowner of a life contract? - CORRECT ANSWER-Total,
complete, unconditional assignment
Which of the following statements is not true about a retirement income annuity?
- CORRECT ANSWER-It is an ordinary immediate annuity.
All of the following statements are true about an annuity certain, EXCEPT: -
CORRECT ANSWER-If the annuitant dies, the payments cease.
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