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1135 Life & Health Insurance Exam Questions and Answers (100% Pass)
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1135 Life & Health Insurance Exam Questions and Answers (100% Pass)
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©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM1135 Life & Health Insurance Exam
Questions and Answers (100% Pass)
Which of these must be disclosed in a company's universal life policy?i - ✔️✔️The policy's
surrender charges
Which type of life insurance typically offers mortgage protection? - ✔️✔️Decreasing term
Dividends from a mutual insurance company are paid to whom? - ✔️✔️Policyowners
These are all accurate statements regarding universal life insurance EXCEPT -
✔️✔️Policy loans are not permitted
Which of these is NOT a reason for a business to buy key person life insurance? - ✔️✔️A
pension deficiency if the key employee dies
Which of these do NOT indicate the presence of insurable interest in a life insurance
contract? - ✔️✔️Lifelong friendship
Which of these statements is true regarding an adjustable life insurance policy? -
✔️✔️Policyowners are given the option of alternating between forms of term and whole
life insurance
1
,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
Which of these is NOT relevant when determining the amount of personal life insurance
needed? - ✔️✔️Local unemployment rate
XYZ Insurance Company gives direct authority to its producers to sell insurance through
an agency contract, but nothing is stated regarding the collection of premiums. Which
authority grants the producer the right to collect premiums? - ✔️✔️Implied
What kind of life insurance policy allows the policyowner the choice of investments
along with adjustable premiums? - ✔️✔️Variable universal life
In life insurance, the needs approach is used mostly to establish - ✔️✔️how much life
insurance a client should apply for
Which statement concerning adjustable life insurance is accurate? - ✔️✔️The face
amount and premiums can be changed simultaneously by the policyowner
In what way are insurance policies said to be aleatory? - ✔️✔️Involves the potential for
the unequal exchange of value
Which statement concerning an adjustable life insurance policy is FALSE? -
✔️✔️Evidence of insurability is always necessary when there is a change in premium
When funds are shifted straight from one IRA to another IRA, what percentage of the
tax is withheld? - ✔️✔️None
How does the cost for a survivorship life policy compare to the cost of combining two
separate life insurance policies? - ✔️✔️Survivorship life policy is lower
2
,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
In a qualified retirement plan, the yearly contributions to an employee's account - ✔️✔️are
restricted to maximum levels set by the IRS
An insurance company can be liable for a producer's unauthorized acts - ✔️✔️when the
agency contract is vague concerning the authority given
An individual participant personally received eligible rollover funds from a profit-sharing
plan. What is the income tax withholding requirements for this transaction? - ✔️✔️20% is
withheld for income taxes
What minimum percentage of all eligible employees must participate in a group life
insurance plan if the premiums are completely paid for by the employer? - ✔️✔️100%
All of these are considered features of whole life insurance EXCEPT - ✔️✔️Initial cost is
lower than for an equivalent amount of term insurance
In an individual retirement account (IRA), rollover contributions are - ✔️✔️not limited by
dollar amount
Peter, age 50, surrenders his modified endowment contract (MEC). How is the gain
treated for federal income tax purposes? - ✔️✔️The gain is added to his gross income
and a penalty tax is assessed on the gain
Which tax would an IRA participant be subjected to on distributions received prior to age
59 1/2? - ✔️✔️Ordinary income tax and a 10% tax penalty for early withdrawal
3
, ©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
An individual working part-time has an annual income of $25,000. If this individual has
an IRA, what is the maximum deductible IRA contribution allowable? - ✔️✔️$25,000
The insurance coverage in a variable life insurance policy may fluctuate according to -
✔️✔️its underlying investments
Rick recently died and left behind an individual IRA account in his name. His widow was
forwarded the balance of the IRA. The widow qualifies for the - ✔️✔️marital deduction
An employer that offers a qualified retirement plan to its employees is eligible to -
✔️✔️make tax-deductible contributions to the plan
What is the guaranteed cash value of a whole life insurance policy when the insured
turns 65 years old? - ✔️✔️Less than the policy's face amount
Which statement regarding the cash value of a whole life insurance policy is correct? -
✔️✔️Available to the policyowner when policy has been surrendered
Which of these factors do NOT affect life insurance premium rates? - ✔️✔️An insurer's
rating
Which life insurance settlement option pays lifetime benefits to two or more people? -
✔️✔️Joint and survivor
Which would be described as a beneficiary designation by class? - ✔️✔️Children of the
insured
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