Af University Final Exam (Bachelors)

Allstate Financial (AF) does not offer the Allstate Good Hands Annuity.

Underwriting questions are used by insurance companies to assess the risk associated with insuring an individual. These questions help the company determine various factors such as the purpose of insurance, the health status of the individual, and whether the requested amount of insurance is reasonable. However, congenital birth defects are not typically considered in underwriting questions as they are pre-existing conditions that are present at birth and are not influenced by the insurance coverage.

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Universal Life (UL) insurance policies offer both flexible premiums and flexible face amounts. This means that policyholders have the ability to adjust the amount they pay in premiums and the amount of coverage they receive. This flexibility allows individuals to customize their policy to meet their changing needs and financial situations. Additionally, UL policies are a popular offering from Lincoln Benefit Life. Therefore, the correct answer is D. All of the Above.

Accident forgiveness is not a Legacy Secure Rider because it is not directly related to life insurance. Legacy Secure Riders are additional benefits or options that can be added to a life insurance policy to provide extra coverage or protection. Examples of Legacy Secure Riders include accelerated death benefit, children's level term rider, and coverage protection rider. Accident forgiveness, on the other hand, is typically associated with auto insurance and is not applicable to life insurance policies.

The correct answer is D. Both A and C. The accumulation phase refers to the period when an individual contributes money into an annuity, allowing it to grow over time. The payout phase, also known as the distribution phase, is when the individual starts receiving regular payments from the annuity. Both of these phases are important components of an annuity.

A 1035 exchange is a provision in the tax code that allows policyholders to transfer funds from one insurance policy to another without incurring taxes on the investment gains. This can be beneficial for individuals who want to change insurance policies but do not want to lose the tax advantages they have already gained. Therefore, the correct answer is B. Transferring funds from one policy to a new policy.

The medical and paramedical requirements for insurance coverage are determined by both the age of the insured individual and the amount of death benefit they have applied for. Age is a factor because older individuals may have more health issues or be at a higher risk for certain conditions. The amount of death benefit applied for is also important because higher amounts may require more extensive medical evaluations to assess the risk involved. Therefore, both factors play a role in determining the medical and paramedical requirements for insurance coverage.

The guaranteed minimum interest rate that is paid on a legacy Secure Universal Life Policy is 3%.

The Accidental Death Benefit Rider is not included in the Legacy Secure SL policy.

The correct answer is D. All of the above. This means that the Overloan Protection Rider can be issued for all ages, it prevents the underlying policy from lapsing when policy loans exceed the policy value, and it triggers a one-time charge of no more than 4.5% of the policy value.

The correct answer is D. There is no maturity age. This means that the policy does not have a specific age at which it matures or ends. Unlike other types of life insurance policies that have a specific term or maturity age, whole life II policies continue indefinitely as long as the premiums are paid. This allows the policyholder to have coverage for their entire lifetime, without worrying about the policy expiring at a certain age.

The Allstate Tobacco Classifications include different categories based on the duration of time that a person has not used tobacco. The categories mentioned in options B, C, and D all specify the number of years that a person must be tobacco-free in order to qualify for that classification. However, option A states "no tobacco for 10 years," which is not a category mentioned in the Allstate Tobacco Classifications. Therefore, option A is the correct answer as it is the only one that is not included in the Allstate Tobacco Classifications.

The Ultra Plus grace period is the amount of time given after a certain event or deadline during which no penalties or fees will be imposed. In this case, the correct answer is 61 days, meaning that individuals with an Ultra Plus plan have 61 days to make a payment without incurring any additional charges.

Exam One is the approved paramed vendor.

An annuity is a contract issued by an insurance company that serves as a savings vehicle, which can be either fixed or variable in investment style. It also provides a guaranteed death benefit. However, it is not accurate to say that an annuity can be looked at as a spending account. An annuity is primarily used as a means of accumulating funds for retirement, rather than for day-to-day spending.

The Liquidity rider provides the option for a percentage of the premium payments to be refunded if the customer decides to surrender the policy on or after the 7th anniversary. This means that if the customer no longer wants or needs the policy, they have the opportunity to receive some of their premium payments back. This can be a valuable feature for individuals who may have a change in financial circumstances or no longer require the coverage provided by the policy.

Whole Life II is a type of life insurance policy that offers guaranteed level premiums, permanent insurance protection, and life insurance coverage for a lifetime. However, it does not have streamlined underwriting guidelines. This means that the underwriting process for Whole Life II may not be simplified or expedited compared to other types of life insurance policies.

Legacy Secure SL is a solution that caters to individuals interested in traditional estate liquidity, providing for an impaired child, and wealth transfer/charitable gifting. It encompasses all of these aspects, making it a comprehensive option for those looking to address these specific needs.

The correct answer is D. All of the above. Financial underwriting requirements for high face amount policies include inspection reports, business financial statements, and consumer database verification. These requirements are necessary to assess the financial stability and credibility of the applicant, as well as to determine the risk involved in issuing a policy with a high face amount.

The death benefit of a permanent policy is reduced by both outstanding policy loans and withdrawals at the time of a claim. Outstanding policy loans refer to any loans taken out against the policy's cash value, while withdrawals are any partial withdrawals made from the policy. Both of these actions decrease the amount of money that will be paid out as the death benefit.

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The correct answer is C. "looking for the opportunity for aggressive returns on cash value." This is not a target market for Ultra Plus because Ultra Plus is a permanent life insurance product that focuses on providing life insurance protection with minimal death benefit. It is not designed to offer aggressive returns on cash value.

The correct answer is C. Available on all types of life insurance. This means that the Sherlock Underwriting Program is not available for all types of life insurance policies. It is limited to certain types or does not cover certain types of life insurance policies.

The proposed insured must meet certain requirements to be placed in a certain rate class, such as having a certain build, a favorable family history, and a good driving record. However, having a high-risk avocation is not a requirement for being placed in a certain rate class.