Life Insurance

An Annuity Contract may be returned for a full refund during?

- Incontestable period
- grace period 
- free look period 
-refund period

Which of the following may be considered an act of misrepresentation?

-  Making public statement that contains false or malicious information about an insurance company
- Charging a different rate for someone in the same actuarial class
-Misleading or failing to adequately disclose the title and true nature of a policy offered to a client 
- Offering premium rebate or a special advantage of any kind to a consumer as an inducement to purchase a contract of insurance

A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid

- Mandatory income tax withholding on the amount transferred 
- Paying transfer fees
- Paying trustee fees
- Ever paying income taxes on the distributions

Which type of life insurance policy allows a policy owner the choice of investments along with flexible premium payments>

- Variable universal Life
- Modified endowment contract
- Adjustable life
- Graded premium whole life

Which report Contains information regarding an individual's general reputation and credit standing?

- Credit Report
- Consumer Report
- MIB report
- Agents report

A life policy's spendthrift clause would have no effect if the beneficiary is paid the proceeds as a 

- Fixed-period installment
- life income option
- fixed-amount installment
- lump-sum payment

Which of these is an accurate statement regarding the fixed period settlement option on a life insurance policy>

- A portion of the payments paid to the beneficiary comes from interest calculated on the proceeds of the policy 
- Payment can be adjusted monthly by the beneficiary 
- A portion of the payments paid to the beneficiary comes from interest generated from policy loans
- Payments are normally guaranteed for 10 years or more

An Annuity's accumulation period may

- continue after the purchase payments stop
- continue after the benefit payments start
- continue after annuitant dies
- continue after the annuity has been surrendered

Which of the following is NOT a valid reason or an insurer to contest a life insurance policy during the policy's first two years of existence?

- Misstatement of age
- Fraud 
- Material misrepresentation 
- Material concealment

Kevin has an existing life insurance policy and assigns it to another insurer for a new contract. How would this transaction be treated for tax purposes?

- As a section 1035 exchange 
- As a transfer
- As a rollover 
- As a section 1040 change

When using the needs approach for life insurance planning, a lump sum may be created to provide for all of the following EXCEPT

- Final expenses 
- Charitable donation 
- Education 
- Employee benefits

A life policy that has premiums that are lower than normal during the early years is called

- Decreasing term 
- Modified life 
- Variable life 
- Limited-pay life

An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?

Which of these is NOT an advantage of term life insurance? 

- The greatest amount of coverage can be provided for the initial premium paid
- It can be provided as a rider to another policy 
- A cash benefit will be provided if the insured is alive at the end of the policy period 
- Temporary insurance needs can be met

A life insurance guaranteed insurability rider fives the insured the right, without proving insurability, to 

- purchase life insurance policies on his children as they are born
- purchase life insurance on a spouse after becoming married 
- purchase additional life insurance at anytime 
- periodically purchase additional insurance

What year was the Mental Health Parity and Addiction Equity act established?

- 2004 
- 2006 
- 2008
- 2010

Who normally pays the premiums for group credit life insurance?

- Creditor and borrower share the cost equally 
- Borrower
- Creditor 
- Beneficiary

In what way is a life insurance policy affected by an accelerated benefit payment? 

-Decreases the premiums 
- Extends the grace period 
- Increases the policy loan balance 
- Decreases the death benefit

These are all accurate statement regarding universal life insurance except?

- Mortality charge is deducted from the policys cash value each morn 
- Policy loans are not permitted
- Flexible premiums as long as the cost of insurance protection is covered
- Policy states what percentage of the premium is contributed to the cash value and which pays for the cost of isurance

Which life insurance clause prohibits an insurance company from questioning the validity of the contract after as stated period of time has passed?

- Entire contract provision 
- Grace period provision
- Incontestable clause 
- Insuring cause

Which of these statements is NOT a characteristic of the law of large numbers? 
- Individuals losses can be predicted based on past experience 
- Group losses can be predicted based on past experience 
- Losses can be predicted in large groups with a higher degree of accuracy
- Rates can be calculated to compensate for losses

Which of the following is NOT an example of Risk Retention?
 
- Becoming aware of a risk and taking no action
- Self-insuring a given risk
- deciding a business deal is too risky but going through with it anyways 
- Not doing a business deal after deciding it would be too risky