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Mississippi Insurance Licensing Exam Questions and Answers 100% CORRECT
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Mississippi Insurance Licensing Exam
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Mississippi Insurance Licensing Examwhen the insured selects the extended term non-forfeiture option the cash value will be
used to purchase term insurance with what face amount? - answer equal to the
original policy for as long as the cash value will purchase
The automatic premium loan provision is activated the end of the ---- - answer grace
period
An employer has sponsored a qualified retirement plan for its employees where the
employer will contribute money whenever a profit is realized. what is this called? -
answer profit sharing plan
An insured has a live insurance policy company and receives quarterly dividends. he
has instructed the company to apply the policy dividends to increase the death benefit.
the dividend option that the insured has chosen is called? - answer Paid-up additions
the policy owners wants to make sure that upon his death the live policy will pay a
portion of the proceeds annually to his spouse, but the principle will be paid to their
children when the reach a certain age. which settlement option should the policy owner
choose? - answer interest only option
An insured receives an annual life insurance dividend checks. what term best describes
this arrangement? - answer cash option
what is the purpose of the buyer's guide? - answer to all the consumer to compare
the cost of different policies
the validity of coverage under a live insurance policy may not be contested except for
nonpayment of premium, after the policy has been enforced for at least how many
years? - answer two years
When a reduced pay up nonforfeiture option is chosen, what happens to the base
amount of the policy? - answer it is reduced to the amount of what the cash value
would buy as a single premium
Which of the following determines the length of time that benefits will be received under
the fixed amount settlement option? - answer size of its installment
, An insured purchased a live policy in 2010 and died in 2017. the insurance company
discovers that the insured had concealed information during the application process.
what can they do? - answer pay the death benefit
In an annuity the accumulated money is converted into a stream of income during which
time period? - answer annuitization period
contracts that are prepared by one party and are submitted to the other party as on a
take it or leave it basis are classified as - answer contracts of adhesion
which of the following types of risk will result in the highest premium? - answer
substandard risk
Who bears all of the investment risk in a fixed annuity? - answer the insurance
company
what is the benefit of choosing an extended term as a non-forfeiture option? - answer
it has the highest amount of insurance protection
which of the following is not typically excluded from live policies? - answer death due
to plane crash for a fair paying passenger
your client paid for her annuity with a lump sum payment but after a year she still hasn't
received her first income payment from the annuity. which of the following is true?
(A) she may have a deferred annuity
(B) the sum of premium paid so far has not met the designated pay off level
(C) the first income payment does not have to be made until the first year of payment
(D) a single deferred annuity is made in a lump sum but the annuity income payments
do not have to be distributed within a year unlike a single premium annuity - answer
(A) she may have a deferred annuity
Which two terms are associated directly with the way an annuity is funded? - answer
single payment or periodic payment
which of the following can surrender a deferred annuity contract?
(A) a deferred annuity cannot be surrender
(B) only the annuity owner
(C) only the insurance company for non-payment of premiums
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