Exam pt 1 insurance

Which entity determines the amount of accelerated death benefits, that will be paid to an insured?

• the insurer

• Federal law

• Employers offering plans that include accelerated, death benefits

• State law

The insured had his wife named as a beneficiary of his insurance policy to ensure that his wife had income for life after the insurance death he chose the life income settlement option. The amount of payments will be determined by making into account all of the following, except.

• The beneficiary’s life expectancy

• The insured age at death

• Face amount of the policy

• Projected

What is the purpose of a conditional receipt?

• It guarantees that a policy will be issued in the amount applied for

• It is given only two applicants to fully pre-pay the premium

• It serves as proof that the applicant has been determined insurable

• It is intended to provide coverage on a date prior to the policy issue

For a retirement plan to be qualified, it must be designed for the benefit of

• IRS

• Key employee

• Employer

• employee(s)

In insurance transactions, fiduciary responsibility means

• Being liable with respect to payment of claims

• Maintaining a good credit record

• Commingling premiums with agents, personal funds

• Handling insurer funds in a trust capacity

An insured purchased a 15 year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death, writer, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. How much will the beneficiary receive from the policy?

• $100,000

• Zero dollars

• $100,000 plus the total of paid premiums

• $200,000

A prospective insured receives a conditional receipt, but dies before the policy is issued. The insurer will.

• Automatically pay the policy proceeds

• Pay the policy, proceeds up to an established limit

• Not to pay the policy, proceeds under any circumstances

• Pay the policy proceeds only if it would have issued the policy

Which of the following will not be an appropriate use of a deferred annuity?

• Accumulating funds in an IR

• Accumulating retirement funds

• Funding a child’s college education

• Creating an estate

An insured decides to surrender his $100,000 whole life policy. The premium is paid into the policy added up to $15,000 at policy surrender. The cash surrender value was $18,000. What part of this surrender cash value would be income tax taxable

• $15,000

• $18,000

• $50,000

• $3000

Which of the following is true regarding the accumulation period of an annuity?

• It is a period during which the payments into the annuity grow tax deferred

• It is a period of time during which the beneficiary receives receives income?

• It is limited to 10 years

• It