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Exam (elaborations)

RMI 211 Exam 4 Study Guide with Complete Solutions

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  • RMI 211

RMI 211 Exam 4 Study Guide with Complete Solutions A contingency beneficiary in a life insurance policy has the right to - Answer️️ -receive the policy proceeds if the primary beneficiary dies before the insured A legal reserve in life insurance is a result of - Answer️️ -excess premiu...

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  • August 30, 2024
  • 10
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • RMI 211
  • RMI 211
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SophiaBennett
©SOPHIABENNETT@2024-2025 Monday, August 26, 2024 6:09 AM




RMI 211 Exam 4 Study Guide with
Complete Solutions

A contingency beneficiary in a life insurance policy has the right to -
Answer✔️✔️-receive the policy proceeds if the primary beneficiary dies
before the insured

A legal reserve in life insurance is a result of - Answer✔️✔️-excess premiums
in the early policy years being invested at compound interest

All of the following are nonforfeiture options found in cash value life
insurance policies EXCEPT - Answer✔️✔️-reduction of premiums

All of the following are requirements that must be satisfied before
premiums are waived under a wave-of-premium provision EXCEPT -
Answer✔️✔️-The insured must satisfy a 2-year waiting period

All of the following statements about ordinary life insurance are true
EXCEPT - Answer✔️✔️-The face amount of the policy is paid if the insured
lives to age 65

All of the following statements about the conversion of a term policy are
true EXCEPT - Answer✔️✔️-Evidence of insurability is required before a
conversion is permitted

All of the following statements about the income tax treatment of
individually-purchased life insurance are true EXCEPT - Answer✔️✔️-


1

, ©SOPHIABENNETT@2024-2025 Monday, August 26, 2024 6:09 AM



premiums paid for the individual life insurance are a tax deductible
expense

An immediate life annuity offers all of the following benefits EXCEPT -
Answer✔️✔️-immediate annuity payments are entirely exempt from federal
income tax

Ann is considering the purchase of a life insurance policy with these
characteristics: flexible premium payments, the insurance and savings
components are separate, the interest rate credited to the cash value is tied
to a changing market interest rate but a minimum interest rate is
guaranteed, and a monthly administrative fee is charged. Ann is
considering buying - Answer✔️✔️-universal life insurance

Becky is considering the purchase of a whole life policy on her own life.
She is concerned that if she becomes disabled, paying premiums will
become a burden. Which provision can Becky attach to her life insurance
policy to address this concern? - Answer✔️✔️-waiver-of-premium provision

Brad owns a cash value life insurance policy. Last year, the cash value
increased by $300. Brad received $100 in policyholder dividends on the
policy last year which remained in the policy. Brad was the beneficiary
named in his grandmother's $50,000 life insurance policy. When she died
this past year, Brad received $50,000. How much taxable income relating to
life insurance must Brad report for federal income tax purposes? -
Answer✔️✔️-$0



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