Life Exam Portion

100 Questions | Total Attempts: 2700

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Life Quizzes & Trivia

Questions and Answers
  • 1. 
    After a group life master policy has been issued, what action may the insurer take on future policy anniversaries?
    • A. 

      A It may cancel the insurance of any group members who have become seriously ill or impaired.

    • B. 

      B It may adjust the premium to bring it in line with current mortality and operating expenses.

    • C. 

      C It cannot make any changes in the contract or in the enrollees.

    • D. 

      D It may refuse to insure covered members with excessive claims.

  • 2. 
    If each partner purchases policies on the other partners, it is what type of plan?
    • A. 

      A Entity plan

    • B. 

      B Cross purchase plan

    • C. 

      C Partnership plan

    • D. 

      D Stock redemption plan

  • 3. 
    When does a tertiary beneficiary collect?
    • A. 

      A When the primary beneficiary dies

    • B. 

      B When the secondary beneficiary dies

    • C. 

      C When the primary and secondary pre-decease the insured

    • D. 

      D None of the above

  • 4. 
    The primary insurance amount (PIA) is equal to:
    • A. 

      A 1/2 worker's retirement at 62

    • B. 

      B 1/2 worker's retirement at 65

    • C. 

      C Full worker's retirement at 62

    • D. 

      D Full worker's retirement at 65

  • 5. 
    An annuitant receives $1200 a month, the value of each annuity unit is $6, How many annuity units did he receive?
    • A. 

      A 20

    • B. 

      B 200

    • C. 

      C 2,000

    • D. 

      D 7,200

  • 6. 
    An annuity contract provides?
    • A. 

      A Zero

    • B. 

      B $100

    • C. 

      C $150

    • D. 

      D $300

  • 7. 
    An annuity is purchased for $10,000, the expected return is $20,000 what amount is taxable if it pays $300 month?
    • A. 

      A Zero

    • B. 

      B $100

    • C. 

      C $150

    • D. 

      D $300

  • 8. 
    Taking all the funds available to a family and planning for their financial obligations is an example of:
    • A. 

      A Human life value approach

    • B. 

      B Needs approach

    • C. 

      C Dollar valuation

    • D. 

      D Multiple earnings

  • 9. 
    A variable annuity separate account will be invested in:
    • A. 

      A the legal reserve for liquidity

    • B. 

      B equity investments

    • C. 

      C bonds

    • D. 

      D short term government securities

  • 10. 
    An agent who writes controlled business must write how much business to the public?
    • A. 

      A Equal amount

    • B. 

      B More

    • C. 

      C Less

    • D. 

      D None

  • 11. 
    Jose works for a large city as a firefighter and Mable, his wife, is a secretary for a small new car dealer. Which one of the two is likely not to be covered under social security?
    • A. 

      A Mable

    • B. 

      B Jose

    • C. 

      C Fred

  • 12. 
    Most business assignments of life insurance policies are made in order to protect the:
    • A. 

      A insured's insurability.

    • B. 

      B lenders financial interest in the insured.

    • C. 

      C beneficiary from the claims of creditors.

    • D. 

      D insurance company from fraudulent claims.

  • 13. 
    What factors determine the amount an annuitant receives at retirement? I. Total capital II. Interest rate III. Payout option selected
    • A. 

      A I

    • B. 

      B II & III

    • C. 

      C I & III

    • D. 

      D I, II, & III

  • 14. 
    Under a life income annuity option which of the following is true?
    • A. 

      A The older the annuitant, the smaller the monthly payment.

    • B. 

      B The older the annuitant, the shorter the payment period.

    • C. 

      C The younger the annuitant, the shorter the payment period.

    • D. 

      D The older the annuitant, the larger the monthly payment.

  • 15. 
    The purpose of an annuity is the systematic distribution of an estate. The manner of distribution is selected by the owner. Which of following are true? I. It may or may not involve "life expectancy" calculations II. The annuity period may also be described as the benefit period III. The age and sex of the annuitant cannot influence the benefits, as that would violate laws IV. The settlement option can be changed within 5 years of annuitizing
    • A. 

      A I

    • B. 

      B I and II

    • C. 

      C I, II, and III

    • D. 

      D All

  • 16. 
    At what age can Traditional IRA owners begin to receive payments and not incur negative tax consequences?
    • A. 

      A 50 1/2

    • B. 

      B 59 1/2

    • C. 

      C 65

    • D. 

      D Anytime

  • 17. 
    The MIB's main purpose is:
    • A. 

      A Provide detailed medical information

    • B. 

      B Prevent overinsurance

    • C. 

      C Prevent misrepresentation and fraud

    • D. 

      D Assist doctors

  • 18. 
    Under a payor provision, what happens if the child covered under the policy becomes disabled?
    • A. 

      A Face amount payable

    • B. 

      B Nothing

    • C. 

      C Premiums waived until age 25

    • D. 

      D Premiums waived permanently

  • 19. 
    Mr. Roberts assigns a $100,000 policy and has a $50,000 mortgage. Mortgagee and assignee receive a check payable jointly. What type of agreement is this?
    • A. 

      A Absolute assignment

    • B. 

      B Collateral assignment

    • C. 

      C Partial assignment

    • D. 

      D Divisible assignment

  • 20. 
    Which employees would likely be excluded from group term life insurance? I. Those with less than 3-months service II. Those who work fewer than 20 hours a week III. Those who work fewer than 4 months per year IV. Those who have worked many years full time
    • A. 

      A I only

    • B. 

      B I and II

    • C. 

      C II, III, and IV

    • D. 

      D I, II, and III

  • 21. 
    A divorced spouse and her minor children have what rights under a group policy? I. Employer continues to pay the insurance another 90 days II. Spouse has 31 days to convert III. Minor children can convert policies at age 19 or if they are in school full time, as late as 23
    • A. 

      A I only

    • B. 

      B I and II

    • C. 

      C II and III

    • D. 

      D I, II, and III

  • 22. 
    A Universal Life Insurance policy has all the following features except:
    • A. 

      A It is considered a form of Permanent Life Insurance.

    • B. 

      B Without its adjustable features it resembles an Endowment policy.

    • C. 

      C Contributions (premiums) may be increased or decreased by the policy payor.

    • D. 

      D The face amount may be increased (subject to evidence of insurability), or decreased (subject to the I.R.S. corridor).

  • 23. 
    Who regulates the separate account in a Variable Annuity?
    • A. 

      A Insurance Dept.

    • B. 

      B NASD

    • C. 

      C SEC

    • D. 

      D Fred & Wilma

  • 24. 
    Churning is defined as the practice by which policy values from an existing life insurance policy are used to purchase another policy from a different company where the change is not beneficial for the policy holder.
    • A. 

      A True

    • B. 

      B False

  • 25. 
    Which of the following retirement plans involves a "matching element"?
    • A. 

      A I.R.A

    • B. 

      B 403(b)

    • C. 

      C Keogh

    • D. 

      D 401(k)