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life insurance questions for exam with correct answers
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©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AMlife insurance questions for exam with correct answers
A nonparticipating whole life insurance policy was surrendered for its $20,000 cash
value. The total premiums paid had totaled $16,000. What were the federal income tax
consequences to the policyowner on receipt of the cash value? - ✔️✔️$16,000 was
received tax-free and $4,000 as ordinary income
After an applicant reads and signs an insurance application, he/she should be
conscious of the fact that - ✔️✔️a false statement could lead to loss of coverage
What does a fixed life annuity offer protection against? - ✔️✔️Savings depletion due to
longevity
Which of these statements regarding the extended term insurance nonforfeiture option
in a life policy is accurate? - ✔️✔️The premium to purchase the coverage comes from the
policy's cash value
In the event of premium default, which life insurance provision will use the cash value to
keep the policy in force? - ✔️✔️Automatic premium loan
Which of these factors does NOT influence an individual's need for life insurance? -
✔️✔️Self-maintenance expenses
What must be given to a life insurance applicant when the agent receives an application
and the initial premium? - ✔️✔️Conditional receipt
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, ©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
The maximum prison sentence given under federal law for unfair and deceptive
insurance practices is - ✔️✔️15 years
An employee welfare plan exempt from ERISA regulations would be - ✔️✔️church plans
The highest mortality rate belongs to which group? - ✔️✔️Age 70 males
The free look period provided in a life insurance policy is usually - ✔️✔️10 days
Life insurance premiums are computed on what three factors? - ✔️✔️Mortality, interest,
expenses
When does the owner's contractual rights begin under an individual annuity contract? -
✔️✔️Time of purchase
Which of the co-annuitants listed below would receive the largest monthly benefit
payments in a joint and 100% survivor annuity? - ✔️✔️Ages 71 and 73
Which report contains information regarding an individual's general reputation and credit
standing? - ✔️✔️Consumer report
An applicant submits a life insurance application where an investigative consumer
report is used in the underwriting process. Which of these statements is true? -
✔️✔️Applicant has a right to receive a copy of the report
A life insurance guaranteed insurability rider gives the insured the right, without proving
insurability, to - ✔️✔️periodically purchase additional insurance
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