Exam (elaborations)
Indiana Life Insurance Exam
- Course
- Institution
Indiana Life Insurance Exam Indiana Life Insurance Exam Indiana Life Insurance Exam
[Show more]
Content preview
Indiana Life Insurance ExamWhich of the following is NOT a characteristic of a Variable Annuity?
A. Premium Payments may be level or flexible or single premium
B. The cash values are invested in securities.
C. The non-forfeiture values will provide for the return of the cash value should the annuitant die during
the accumulation period.
D. It provides for a tax-free death benefit. - CORRECT ANS D. It provides for a tax-free death benefit.
All of the following policies provide for the tax deferred accumulation of cash value EXCEPT:
A. Interest Sensitive Whole Life
B. Single Premium Variable Annuity
C. Variable Universal Life
D. Term Life - CORRECT ANS D. Term Life
All of the following are true statements about the taxation of life insurance benefits except:
A. Policy loans are taxed as ordinary income
B. The cash value in a life insurance policy grows on a tax deferred basis.
C. The interest earned on the "interest" Settlement Option is taxed as ordinary income.
D. The death benefit of a life policy is received by the beneficiary federal income tax free. - CORRECT
ANS A. Policy loans are taxed as ordinary income
Which of the following statements is true about the Group Life conversion privilege?
,a. Death during the conversion period is covered even if the departing employee chooses NOT to
convert to an individual policy.
b. The departing employee must pay the premium if they elect to be covered during the conversion
period.
c. If a departing employee elects to convert their life insurance, the company must offer Term insurance
as a choice.
d. Under the COBRA laws a departing employee may elect to remain a member of the Group Life plan
for a limited period of time. - CORRECT ANS A. Death during the conversion period is covered even if the
departing employee chooses NOT to convert to an individual policy.
Which of the following is a combination of Decreasing Term and Whole Life?
a. Family Income Policy
b. Family Maintenance Policy
c. Modified Life
d. Family Policy - CORRECT ANS A. Family Income Policy
A type of Annuity in which the cash values are invested in securities is called:
a. Variable
b. Deferred
c. Joint and Survivorship
d. Flexible premium - CORRECT ANS Variable
Mary is receiving an annuity payout from her Variable Straight Life Annuity. Upon her death, which of
the following will be payable to her estate?
,a. Nothing
b. The policy death benefit
c. The remaining value of her account
d. The total premiums paid into the account, less the amount paid to Mary in benefits - CORRECT ANS A.
Nothing
What is decreasing in a Decreasing Term policy?
a. The cash value
b. The premium
c. The face amount
d. The nonforfeiture values - CORRECT ANS The Face Amount
Endowment policies can mature in two ways. What are they?
a. The insured dies during the policy period or annuitizes the policy after age 59&1/2.
b. The insured dies during the policy period or reaches the endowment age as designated in the policy.
c. The insured dies during the policy period or retires at age 59&1/2.
d. The insured dies or reaches age 100. - CORRECT ANS B. The insured dies during the policy period or
reaches the endowment age as designated in the policy.
At age 30, Joe Insured purchases a 20 Pay Whole Life Policy. Which of the following statements is true
regarding Joe's policy coverage?
a. Joe's death protection will end at age 50.
b. Joe's nonforfeiture values will end at age 50.
, c. Joe will be able to stop paying the premiums at age 50, but his death protection will run through age
100.
d. At age 50, Joe's cash value will equal the face value of his contract. - CORRECT ANS C. Joe will be able
to stop paying the premiums at age 50, but his death protection will run through age 100.
Warranties are:
a. The same as representations.
b. Statements that are absolutely true.
c. Statements that are believed to be true.
d. Critical to the formation of a life insurance contractual agreement. - CORRECT ANS B. Statements that
are absolutely true.
All the following are reasons why an insurance company may not pay a death benefit under a Term life
insurance policy EXCEPT:
a. A suicide before the end of the first two policy years.
b. Non payment of premium.
c. An accidental death resulting from drowning.
d. A material misrepresentation on the application discovered before the end of the contestable period.
- CORRECT ANS C. An accidental death resulting from drowning.
Which of the following life insurance policies offers the build up of cash value on an interest-sensitive
basis and the right to make partial withdrawals of that cash value without interest?
a. Universal Life
b. Adjustable Life
c. Variable Universal Life
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lectjoseph. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
69252 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 15 years now