WEBCE PRACTICE QUESTIONS AND ANSWERS HIGHLY GRADED

Which statement about variable annuity subaccounts is NOT correct? Most deferred annuities apply surrender charges for all years after the contract is issued. Anita buys health insurance to protect herself in case of serious illness. the length of time that the insured must pay premiums The insurer selects the variable subaccounts to which the contract owner's premiums are allocated. 1 of 100 Term In general, life insurance death benefits paid to a beneficiary in a lump sum are not taxed. Which statement is correct if the payout option is other than a lump sum? Under decreasing term insurance, the death benefit decreases over the policy period while with a level term policy, the death benefit stays level over the policy period. Interest earnings are taxable income to the beneficiary. Sam, who wants to insure his neighbor Total loading from all policies should cover total operating costs, provide a safety margin, and contribute to profits or surplus. 2 of 100 EXAM Term Steve is terminated from his employment at Kaufman and Schlepp on July 31. If he wants to convert his group coverage to an individual policy, he must apply for it no later than what date? August 31 8 percent May 31 August 30 3 of 100 Term Which does not rate the financial strength of insurance companies? The Applicant's Religion Reduced Paid-up Option Securities and Exchange Commission The Insuring Clause 4 of 100 Term Bob owns a whole life insurance policy that pays $400 in policy dividends this year. He decides to use the $400 to purchase additional whole life insurance. Which of the following has Bob selected as a dividend option? liquidity paid-up additions a policy marge