The type of plan that deserve to be changed from one that does not accumulate cash worth to the one that does, is a1. Whole Life Policy.2. Convertible Term Policy.3. Renewable Term Policy.4. Decreasing Term Policy.

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All other factors being equal, the least expensive first-year premium payment is found in1. Annually Renewable Term.2. Increasing Term.3. Decreasing Term.4. Level Term.

All of the adhering to are TRUE concerning the convertibility alternative under a term life insurance plan EXCEPT1. Upon conversion, the premium for the long-term policy will be based upon attained age.2. Upon convariation, the death advantage of the irreversible policy will certainly be decreased by 50%.3. Evidence of insurability is not forced.4. Many term plans contain a convertibility option.

Which of the complying with policies is identified by a provision wbelow the premiums are reduced in the early years of the policy and rise over time to a point wright here they come to be level for the remainder of the policy?1. Enhanced whole life2. Minimum deposit whole life3. Graded premium entirety life4. Indeterminate premium totality life

Which of the adhering to is NOT a term for the period of time during which the annuitant or the beneficiary receives income?1. Annuitization period2. Pay-out period3. Liquidation period4. Depreciation period

Which of the following is an example of liquidity in a life insurance contract?1. The versatile premium2. The money in a savings account3. The cash worth available to the policyowner4. The fatality benefit phelp to the beneficiary

In forming an insurance contract, when does acceptance typically occur?1. When an insured submits an application2. When an insurer"s underwriter approves coverage3. When an insurer delivers the policy4. When an insurer receives an application

Graded-Premium Whole Life policy premiums are generally lower initially, but gradually rise for a duration of 5 to 10 years. After the period of boost the premiums will1. Continue to increase.2. Rerevolve to the initial premium amount.3. Decrease aacquire.4. Be level after that.

What does “liquidity” refer to in a life insurance policy?1. The policyowner receives dividend checks each year.2. The insured is receiving payments each month in retirement.3. Cash values have the right to be obtained at any time.4. The death advantage replaces the assets that would have actually gathered if the insured had not passed away.

For an individual who is NOT covered by an employer-funded setup, IRA contributions are1. Never taxation deductible.2. Partially taxes deductible relying on the revenue level.3. Tax deductible.4. Deducted based upon the income level.

Which of the adhering to statements about team life is correct?1. The premiums are greater than in an individual policy because there is no medical exam.2. The group sponsor receives a Certificate of Insurance.3. The plan can be converted to an individual term insurance plan.4. The expense of coverage is based on the ratio of guys and also woguys in the group.

Which of the complying with finest specifies tarobtain premium in a global life policy?1. The minimum amount to make certain the policy is annually renewable2. The corridor of insurance3. The recommended amount to store the policy in force throughout its lifetime4. The maximum amount the policyowner may pay on a policy

Which of the complying with is TRUE concerning the annuity period?1. It may last for the lifetime of the annuitant.2. During this duration of time the annuity payments grow interemainder tax deferred.3. It is likewise described as the buildup period.4. It is the duration of time during which the annuitant renders premium payments into the annuity.

What does “liquidity” refer to in a life insurance policy?1. The insured is receiving payments each month in retirement.2. Cash values have the right to be borrowed at any type of time.3. The fatality advantage reareas the assets that would certainly have actually accumulated if the insured had actually not died.4. The policyowner receives dividfinish checks every year.

Which of the complying with kinds of insurance plans would certainly perform the attribute of cash accumulation?1. Crmodify life2. Increasing term3. Whole life4. Term life

When need to an IRA be completely dispersed as soon as a beneficiary is not named?1. December 31 of the year adhering to the year of the owner"s fatality.2. Due day of the deceased owner"s last taxes rerevolve consisting of extensions.3. December 31 of the year that has the fifth anniversary of the owner"s fatality.4. Due day of beneficiary"s tax rerevolve consisting of extensions.

An insured receives a monthly summary for his life insurance plan. He notices that the cash worth of the plan is considerably lower this month than it was last month. What type of plan does the insured have?1. Variable2. Term3. Securities4. Stock

Who deserve to make a totally deductible contribution to a conventional IRA?1. Someone making contributions to an educational IRA2. A perboy whose contributions are funded by a rerotate on investment3. An individual not spanned by an employer-funded plan who has actually earned income4. Anybody: all IRA contributions are totally deductible regardless of earnings level

All of the following are true of vital perchild insurance EXCEPT1. The plan is funded by permanent insurance only.2. Tright here is no limitation on the variety of key employee plans in pressure at any one time.3. The employer is the owner, payor and beneficiary of the policy.4. The vital employee is the insured.

An Adjustable Life policyowner have the right to readjust which of the following plan features?1. The coverage period2. The mortality expense3. The investment account4. The insured

A corporation is the owner and also beneficiary of the crucial perchild life plan. If the corporation collects the policy advantage, then1. The benefit is subject to the exclusionary dominance.2. IRS has no jurisdiction.3. The benefit is received as taxable income.4. The advantage is got taxes totally free.

All of the following statements are TRUE concerning Debtor Groups EXCEPT1. An insurer might exclude any type of debtors as to whom evidence of individual insurcapability is not satisfactory to the insurer.2. The amount of insurance on the life of any kind of debtor may exceed the higher of the booked or actual amount of unpassist indebtedness to the creditor.3. The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s).4. The premium for the policy shall be phelp either from the creditor’s funds, or from charges accumulated from the insured debtors, or from both.

2. The amount of insurance on the life of any type of debtor may exceed the higher of the reserved or actual amount of unpassist indebtedness to the creditor.

If the annuitant dies in the time of the accumulation period, that will obtain the annuity benefits?1. Owner2. Insurance company3. Estate4. Beneficiary

Which of the following ideal defines gross annual premium?1. Basic insurance rate plus commissions2. Expense premium3. Annual price of mortality plus expenses4. Annual loading

An agent tries to sell insurance over the phone to an applicant that shows up to be perplexed, however is ultimately able to give enough information for the application to be completed. After the policy was issued, the agent talked to the insured"s family, and also they explained that the insured was respanning from a surgical procedure and might have been under the influence of medication at the time of application. Which of the following is true?1. The policy will reprimary in force as lengthy as tright here are no product misdepictions on the application.2. The plan is legal because the applicant was able to offer all forced indevelopment.3. The policy is not legal; agents cannot offer insurance over the phone.4. The plan may be voided if it can be proven that the applicant was not capable of making a buying decision at the time of application.

4. The plan might be voided if it can be prstove that the applicant was not capable of making a buying decision at the moment of application.

If an employee desires to enter the team exterior of the open up enrollment period, to alleviate adverse selection, the insurer may1. Prolong the open enrollment duration.2. Increase clinical requirements on existing members.3. Require evidence of insurcapability.4. Require a higher premium.

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In terms of parties to a contract, which of the complying with does NOT describe a knowledgeable party?1. The perkid must not be under the influence of drugs or alcohol.2. The perkid have to be of legal age.3. The perchild need to be mentally proficient to understand the contract.4. The perboy need to have at least completed secondary education

The policyowner of an adjusteady life policy desires to rise the fatality benefit. Which of the following statements is correct about this change?1. The death advantage can be enhanced only by exaltering the existing policy for a new one.2. The fatality advantage have the right to be raised by giving proof of insurcapacity.3. The fatality benefit cannot be boosted.4. The fatality advantage can be boosted only once the policy has arisen a cash worth.

Which kind of life insurance policy geneprices immediate cash value?1. Continuous Premium2. Single Premium3. Level Term4. Decreasing Term

A key perchild insurance policy have the right to pay for which of the following?1. Hospital bills of the crucial employee2. Costs of training a replacement3. Loss of personal income4. Workers compensation

2. Costs of training a replacement

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