New York State Life Insurance Series 17-51 Test
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Dividends - ANSWER-are considered a return of unearned premium which is why are
they are paid out income tax free.
24 - ANSWER-Accelerated Death Benefit
The prognosis of a physician must be a life expectancy of ___ months or less.
The individual states - ANSWER-Highest authority for insurance regulation. No
interference from federal regulation, unless federal law specifically provides otherwise.
Fixed Annuities payments are level - ANSWER-Premiums are allocated to the insurer's
general account. The insurer has the investment risk, and fixed annuities pay out a fixed
level income benefit payment.
Market Value Adjustment Annuity - ANSWER-an annuity product that features fixed
interest rate guarantees combined with an interest rate adjustment factor that can cause
the surrender value to fluctuate in response to market conditions.
2 years or less - ANSWER-Viatical Settlement life expectancy
Pre-need - ANSWER-A type of coverage with a small face amount, typically purchased
to pay the burial expenses of the insured is called ____.
Option B - ANSWER-With an _____ death benefit, the beneficiary will receive the face
amount plus the cash value as of the date of death.
Option A - ANSWER-Pays the face amount of the policy and provides a level death
benefit. As the cash value increases, the company's risk decreases. A universal life
policy must include an amount at risk. If the cash value approaches the face amount,
the death benefit must increase so as to provide for this amount at risk. This minimum
separation between the cash value and the death benefit is called the "risk corridor."
This corridor of insurance is automatic and does not require insurability. This prevents
the policy from maturing too early. Pays the face amount of the policy and provides a
level death benefit. As the cash value increases, the company's risk decreases. A
universal life policy must include an amount at risk. If the cash value approaches the
face amount, the death benefit must increase so as to provide for this amount at risk.
This minimum separation between the cash value and the death benefit is called the
"risk corridor." This corridor of insurance is automatic and does not require insurability.
This prevents the policy from maturing too early.
, Fair Credit Reporting Act (FCRA) - ANSWER-An insurance company must adhere to
the __________ when gathering information about an applicant from third parties.
Entity Purchase Plan - ANSWER-The business enters into an agreement to purchase
the deceased's interest in the business
conditional - ANSWER-When both parties must perform certain duties and follow certain
rules of conduct to make a contract enforceable, this is known as a(n) __________
contract.
Buy-sell agreement life insurance premiums are: - ANSWER-Not deductible and
proceeds are income tax free
Credit Life Insurance - ANSWER-This insurance is normally Decreasing Term and the
amount of insurance reduces as the obligation reduces
The amount of the insurance benefit must not exceed the total amount of indebtedness
The insurance is either a form of individual coverage on the life of a debtor, or a form of
group insurance issued to a creditor providing coverage for debtors
Indeterminate Premium Whole Life - ANSWER-Adjustable Premiums
Nonforfeiture Options - ANSWER-The 3 nonforfeiture options are Cash Surrender,
Reduced Paid-Up, and Extended Term
They add flexibility to a cash value policy
They protect the policyowner against total loss of benefits if the policy should lapse or
be cancelled
1- year - ANSWER-Lowest Term Life Insurance Policy in 1st-year annual premium, all
other factors being equal
Income Tax due triggers when: - ANSWER-Interest earned on dividends left on deposit
with the insurer
The premium could increase or decrease when - ANSWER-The Underwriter Decides to
reclassify the risk reviewing an application
Annuity can - ANSWER-Help fund college for a child or grandchild in an tax-efficient
and effective manner
Through systematic withdrawals or proper settlement option selection
Accelerated Death Benefit - ANSWER-These benefits could be provided based on an
insured qualifying as catastrophic illness, such as the need for an organ transplant
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Dividends - ANSWER-are considered a return of unearned premium which is why are
they are paid out income tax free.
24 - ANSWER-Accelerated Death Benefit
The prognosis of a physician must be a life expectancy of ___ months or less.
The individual states - ANSWER-Highest authority for insurance regulation. No
interference from federal regulation, unless federal law specifically provides otherwise.
Fixed Annuities payments are level - ANSWER-Premiums are allocated to the insurer's
general account. The insurer has the investment risk, and fixed annuities pay out a fixed
level income benefit payment.
Market Value Adjustment Annuity - ANSWER-an annuity product that features fixed
interest rate guarantees combined with an interest rate adjustment factor that can cause
the surrender value to fluctuate in response to market conditions.
2 years or less - ANSWER-Viatical Settlement life expectancy
Pre-need - ANSWER-A type of coverage with a small face amount, typically purchased
to pay the burial expenses of the insured is called ____.
Option B - ANSWER-With an _____ death benefit, the beneficiary will receive the face
amount plus the cash value as of the date of death.
Option A - ANSWER-Pays the face amount of the policy and provides a level death
benefit. As the cash value increases, the company's risk decreases. A universal life
policy must include an amount at risk. If the cash value approaches the face amount,
the death benefit must increase so as to provide for this amount at risk. This minimum
separation between the cash value and the death benefit is called the "risk corridor."
This corridor of insurance is automatic and does not require insurability. This prevents
the policy from maturing too early. Pays the face amount of the policy and provides a
level death benefit. As the cash value increases, the company's risk decreases. A
universal life policy must include an amount at risk. If the cash value approaches the
face amount, the death benefit must increase so as to provide for this amount at risk.
This minimum separation between the cash value and the death benefit is called the
"risk corridor." This corridor of insurance is automatic and does not require insurability.
This prevents the policy from maturing too early.
, Fair Credit Reporting Act (FCRA) - ANSWER-An insurance company must adhere to
the __________ when gathering information about an applicant from third parties.
Entity Purchase Plan - ANSWER-The business enters into an agreement to purchase
the deceased's interest in the business
conditional - ANSWER-When both parties must perform certain duties and follow certain
rules of conduct to make a contract enforceable, this is known as a(n) __________
contract.
Buy-sell agreement life insurance premiums are: - ANSWER-Not deductible and
proceeds are income tax free
Credit Life Insurance - ANSWER-This insurance is normally Decreasing Term and the
amount of insurance reduces as the obligation reduces
The amount of the insurance benefit must not exceed the total amount of indebtedness
The insurance is either a form of individual coverage on the life of a debtor, or a form of
group insurance issued to a creditor providing coverage for debtors
Indeterminate Premium Whole Life - ANSWER-Adjustable Premiums
Nonforfeiture Options - ANSWER-The 3 nonforfeiture options are Cash Surrender,
Reduced Paid-Up, and Extended Term
They add flexibility to a cash value policy
They protect the policyowner against total loss of benefits if the policy should lapse or
be cancelled
1- year - ANSWER-Lowest Term Life Insurance Policy in 1st-year annual premium, all
other factors being equal
Income Tax due triggers when: - ANSWER-Interest earned on dividends left on deposit
with the insurer
The premium could increase or decrease when - ANSWER-The Underwriter Decides to
reclassify the risk reviewing an application
Annuity can - ANSWER-Help fund college for a child or grandchild in an tax-efficient
and effective manner
Through systematic withdrawals or proper settlement option selection
Accelerated Death Benefit - ANSWER-These benefits could be provided based on an
insured qualifying as catastrophic illness, such as the need for an organ transplant
