Illinois Life Producer General Exam SIMULATOR Questions And Guaranteed Pass Solutions.
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Course
Illinois Life Insurance
Institution
Illinois Life Insurance
Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determine - Answer probability of making timely premium payments
The purpose of these reports is to provide a picture of an applicant's general character and reputation, mode ...
Illinois Life Producer General Exam
SIMULATOR Questions And Guaranteed
Pass Solutions.
Consumer reports requested by an underwriter during the application process of a life insurance policy
can be used to determine - Answer probability of making timely premium payments
The purpose of these reports is to provide a picture of an applicant's general character and reputation,
mode of living, finances, and any exposure to abnormal hazards.
Which statement about a whole life policy is true - Answer Cash value may be borrowed against
When an individual is planning to protect his family with life insurance, one Method of doing so is called
the needs analysis. What exactly does needs analysis involve - Answer Establishes the needs of the
individual and his dependents
In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What
kind of contract is this? - Answer Unilateral
Insurance contracts are unilateral. This means that only one party (the insurer) makes any kind of
enforceable promise.
What actions can a policyowner take if an application for a bank loan requires collateral - Answer
Assign policy ownership to the bank
Which requirement must be met for an association to be eligible for a group life plan? - Answer Group
was formed for a purpose other than acquiring insurance
Group life insurance can be formed just as long as they are formed for a reason other than to purchase
insurance.
,Which of the following policies is characterized by a flexible premium and death benefit and allows the
policyowner control of the investment aspect of the plan - Answer Variable Universal Life
"universal" indicates that the policy has a flexible or Adjustable premium. The "variable" nature of the
product indicates that the cash value is invested in the stock market (ex: mutual funds) which permits for
a contract owner to decide where the equity (ex: cash value) is to be invested
Y purchased $100,000 worth of permanent protection on himself and $50,000 worth of 10-year Term
coverage for his wife on the same policy. Which of these policies did Y purchase? - Answer A Whole Life
Policy with an Other Insured Rider
At the age of 45, an individual withdraws $50,000 from his qualified profit-sharing plan and then
deposits this amount into a personal savings account. This action would result in - Answer Income tax
and a 10% penalty assessed upon funds withdrawn from the Qualified Plan
The IRS says that withdrawals of funds from a profit sharing plan may be subject to a 10% tax penalty in
addition to income taxes if they are made before the age of 59 1/2. This same early withdrawal penalty
applies to funds taken out of 401k plans and traditional individual retirement accounts
What type of annuity has a cash value that is based upon the performance of it's underlying investment
funds? - Answer Variable
A variable annuity's cash value will depend on the results of its investment funds.
Which of the following features of a group term life policy enables an individual to leave the group and
continue his or her insurance without providing evidence of insurability - Answer The conversion
privilege
allows an individual to leave the group term plan and continue his or her insurance without providing
evidence of insurability.
When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be
considered a red flag for a(n) - Answer Anti-Money Laundering violation
, When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be
considered a red flag for an Anti-Money Laundering violation.
P purchases a $50,000 whole life insurance policy in 2005. One of the questions on the application asks if
P engages in scuba diving, to which P answers "No". The policy is then issued with no scuba exclusions.
In 2010, P takes up scuba diving and dies in a scuba-related accident in 2011. What will the insurer pay
to P's beneficiary? - Answer $50,000 minus any outstanding policy loans.
In this situation, the beneficiary will receive $50,000 less any outstanding loans and interest. At the time
of the insured's death, the policy is beyond the contestable period.
S would like to use dividends from her life insurance policy to purchase paid-up additions. All of these
would be factors that determine how much coverage can be purchased EXCEPT - Answer Beneficiaries
age
S would like to use dividends from her life insurance policy to purchase paid-up additions. All of these
would be factors that determine how much coverage can be purchased - Answer 1. Type of life
insurance
2. S's attained age
3. Dividend amount used toward purchase
N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What
type of annuity did N purchase? - Answer Fixed Deferred
A Fixed Deferred annuity pays out a fixed amount for life starting at a future date.
A return of premium life insurance policy is - Answer Whole life and increasing term
Whole life insurance with a death benefit rider of increasing term insurance equal to the amount of
premiums paid. If the insured dies within the period of term, the beneficiary will receive face amounts
plus the value of all paid premiums.
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