150 questions #3

Which of the following does a life insurance policy summary normally include?

The policy’s cash value

A conditional receipt is primarily intended to

Speed up coverage while underwriting is completed, if conditions are met

An increase in ________ is most likely to lead to a decrease in insurance premium?

Interest rate

All of the following normally indicate the presence of insurable interest in the life of another person EXCEPT

Maintaining a lasting friendship with the other person

A joint and survivor annuity is purchased by spouses ages 70 and 60. Which factor is least important for calculating payments?

The older spouse’s age

If the annuitant dies before the annuity start date,

the premiums paid plus interest earned will be given to the beneficiary

A life annuity with a 10-year period certain starts payments when the annuitant is 65. The annuitant is still living at age 77. What happens to the payments?

They continue for as long as the annuitant lives

Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?

Life income

An annuity is primarily used to provide

retirement income

Which of the following annuity payout options makes no additional payments regardless of when the annuitant dies?

Life only

An individual, age 45, received a distribution of $15,000, less $3,000 income tax withholding, from a former employer's 401k plan. None of the money was rolled over. Which federal taxes apply?

Income taxes plus a 10% pnalty tax on $15,000

A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a(n)

limited pay policy

What is the nonforfeiture value of an annuity before annuitization?

All premiums paid, plus interest, minus any withdrawals and surrender charges

A securities license is required for a life insurance producer to sell

variable life insurance

A renewable Term Life insurance policy allows the policyowner the right to renew the policy

without producing proof of insurability

A client wants a life insurance policy that is not treated as a security and is not directly invested in separate accounts. Which product fits?

Equity indexed life

What kind of life insurance policy covers two or more people with the death benefit payable upon the last person's death?

Last Survivor Life Insurance

The type of multiple protection coverage that pays on the death of the last person is called a(n)

survivorship life policy

All of these are valid options for an Adjustable Life Policy EXCEPT

A nonforfeiture option can be used to increase the death benefit

What is involved when a life insurance policy has been backdated?

Making the policy effective on an earlier date than the present