Definition 1 of 25
An insurer considers all of the following when determining the fixed annuity payments, except:
The accumulation amount
Stock market values
Interest rate
Expenses
Definition 2 of 25
At least how many days in advance must an insurer give the affected party notice of non-
renewal?
30
60
90
180
Definition 3 of 25
James is nearing retirement and has accumulated $175,000 in an annuity. He wants the largest
possible monthly benefit for as long as he lives. Which option should he choose?
Fixed Amount
Life Income with Refund
Joint Life
Life Income
,Definition 4 of 25
The exception to the rule concerning the non-deductibility of life insurance premiums is:
Key Employee Insurance
Employer paid group life insurance premium up to $50,000 of coverage
Life insurance to fund a Buy-Sell Agreement
Third-Party Ownership Policies
Definition 5 of 25
Which of the following statements about Equity Indexed Life insurance is TRUE?
The policyowner can decide which separate accounts to invest the policy's cash values
into
The insured/owner bears all risk regarding cash surrender value, as negative stock
market performance can cause the cash values to decrease
The interest credited to the policy is based off of the performance of a stock market
index like the S&P 500
To sell Equity Indexed Life, a producer only needs a securities license
Definition 6 of 25
All of the following are the benefits of having an employer sponsored retirement plan be ERIS
A qualified, except:
Employer contributions are immediately tax deductible
Employer contributions are not taxable to the employee until withdrawn
Plan withdrawals are tax free
Earnings on contributions grow tax deferred
, Definition 7 of 25
Which of the following is NOT considered one of the essential elements of a contract?
Competent Parties
Offer of Acceptance
Conditions
Legal Purpose
Definition 8 of 25
K owns a variable annuity with an assumed interest rate of 4%. If the actual performance of the
separate account is 5%, the affect on this month's income benefit check will be ________:
Higher
Same
Lower
It all depends on the separate account selected
Definition 9 of 25
A client wants to make sure that they have permanent life insurance policy several years from
now when they can afford it without having to prove insurability. What feature should they
make sure they have on their new term life insurance policy?
Flexibility
Renewability
Convertibility
Adjustability
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