Questions about Insurance 2

All of these are considered sources of underwriting information about an applicant EXCEPT

• Inspection Report

• Credit Report

• Rating Services

• Medical Information Bureau

Which of the following types of policies pays a benefit if the insured goes blind

• Universal life

• AD&D

• Endowment

• Adjustable life

Two partners own equal shares in a business worth a total of $1,000,000. If they both commit to the purchase of a life insurance policy that will fund a Buy-Sell Agreement, which of the following is TRUE

• Each partner owns a $1,000,000 policy on their own life

• Each partner owns a $1,000,000 policy on their partner's life

• Each partner owns a $500,000 policy on their own life

• Each partner owns a $500,000 policy on their partner's life

Variable annuities may invest premiums in each of the following, EXCEPT

• Common Stock

• Money Market securities 

• Insurer's corporate business account

• Junk bonds

Which of the following statements about accumulated interest earned on dividends from an insurance policy is true?

• Partially Taxable

• Tax Deductible

• Nontaxable

• Taxed as ordinary income

The Commissioner of Insurance has the power and duty to take all of the following actions EXCEPT

• activate insurance companies' financial reserves

• compute insurance companies' required financial reserves

• issue insurance licenses

• handle insurance-related consumer complaints

How are surrender charges deducted in a life policy with a rear-end loaded provision?

• Deducted when the policy is discontinued

• Deducted when the policy is continued

 What percent of personal life insurance premiums is usually deductible for federal income tax purposes?

• 0%

• 15%

• 30%

• 100%

W is a 39-year-old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices EXCEPT

• Flexible-Premium Deferred annuity

• Variable annuity

• Immediate annuity

• Straight Life annuity

An employee is covered under a company group life plan with a $50,000 death benefit. What is the MAXIMUM amount a spouse may be insured for under this program?

• $15,000

• $25,000

• $50,000

• $10,000