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A set of practice questions and answers related to life insurance for producers and agents. It covers various aspects of life insurance, including estate planning, riders, policy types, annuities, and qualified retirement plans. The questions are designed to test knowledge and understanding of key concepts in life insurance.
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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