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Life Insurance Producer/Agent Practice
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Life insurance helps meet estate planning objectives because it is: ✔✔a liquid asset at death
Which one of the following statements about a life insurance policy rider regarding waiver of premiums and disability income is true? ✔✔In addition to waiving premiums during periods of disability, it provides a monthly income.
Which rider is included in a policy with whole life insurance on the principal insured and term insurance on the insured's spouse and children? ✔✔a family rider
A rated life insurance policy is issued at: ✔✔Substandard risk rate
The beneficiary of a life insurance policy originally is indicated: ✔✔on the life insurance application
All of the following are reasons for purchasing life insurance on a spouse who does not work for pay outside the home EXCEPT: ✔✔To guarantee that newborn children will be eligible for life insurance
Death benefits under a survivorship life insurance policy covering two insureds are paid: ✔✔In full at the second insured's death
The authority to select a settlement option under an individual annuity contract resides with: ✔✔the owner
Current interest rates provide a reasonable basis for projecting cash values in a fixed annuity when: ✔✔The current interest rate is close to historical standards
When an annuitant under a life-only annuity dies, what is the amount of the property interest in the contract that will be includable in the annuitant's gross estate? ✔✔zero
Which one of the following statements is true if an insured purchases a limited payment whole life insurance policy? ✔✔the insurance has a lifetime protection
Which qualified plan may be established by a business corporation? ✔✔a simplified employee pension
All of the following statements about universal life insurance are true EXCEPT: ✔✔premiums must me paid on a monthly basis
All of the following are associated with the interest-adjusted net cost method of life insurance policy comparison EXCEPT: ✔✔seperate investment account
Which one of the following factors is considered in determining the amount payable under the interest ONLY settlement option in life insurance policies? ✔✔the amount of policy proceeds
Which statement is true about life annuities? ✔✔The insurer uses the law of large numbers to predict life expectancy.
Compared to a joint life insurance policy, separate whole life insurance policies on each of the insureds typically result in: ✔✔higher combined premiums
When replacement is involved, the life insurance producer or agent is required to give the applicant: ✔✔a copy of each sales proposal used in the presentation
