Kentucky Life Insurance Exam with 100

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Harding University *

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Nov 24, 2024

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Kentucky Life Insurance Exam with 100% Correct Answers | Verified | Latest Update 2024| Already Passed A. All the incidents of ownership in the policy belong to the donee. - ✔✔ In an outright gift of life insurance to a charity A. All the incidents of ownership in the policy belong to the donee. B. The donor retains the right to name a new beneficiary. C. The cash values in the policy belong to the donor. D. The premiums paid by the donor are not tax deductible. C. Making a formal request to the company for an insurance policy. - ✔✔ When signing the application form, the proposed insured is, A. Certifying his or her good health and the company should issue the policy.
B. Swearing to the accuracy of the information contained in the application. C. Making a formal request to the company for a life insurance policy. D. Certifying ability to make the premium payments necessary to keep the policy in force. B. An annuity contract exchanged for a life contract. - ✔✔ Which of the following would NOT be permitted as a Section 1035 policy exchange? A. A life contract exchanged for a another life contract. B. An annuity contract exchanged for a life contact. C. An annuity contract exchanged for another annuity contract. D. An endowment contract exchanged for an annuity contract.
A. A minor may not sign an application. - ✔✔ In applying forgive insurance protection A. A minor my not sign an application. B. A minor may sign the application. C. No one under age 18 may sign an application. D. No one under 21 may sign an application C. An insurable interest in the life of the insured - ✔✔ The applicant, if other than the proposed insured must have A. No relationship with the insured B. An insurable interest in the life of the policyowner C. An insurable interest in the life of the insured
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D. A blood relationship with the insured D. It is not obligated to supply applicants with information it holds about them. - ✔✔ Which of the following statements regarding the Medical Information Bureau is NOT true? A. It is a nonprofit agency established by the life insurance companies to aid their underwriting. B. It supplies member companies with information concerning insurability of proposed insureds. C .It must be authorized by the applicant to give the information to member companies. D. It is not obligated to supply applicants with information it holds about them. B. Rating Up - ✔✔ Establishing premiums for special class risks by using a regular mortality table, but assuming proposed insured are a few years older than they actually are is called.
A. The multiple extra premium method B. Rating Up C. The Lien Plan D. The Flat extra premium charge method C. Applicants right to information held about them to any reporting agency - ✔✔ The fair credit reporting act guarantees which of the following? A. Equitable insurance rates B. Full disclosure of policy benefits C. Applicants' right to information held about them to any reporting agency D. Full disclosure of an insurers financial condition.
A. Agents represent the company, brokers represent the client - ✔✔ The most important difference between licensed agents and licensed brokers is A. Agents represent the company, brokers represent the client B. Agents represent the client, the brokers represent the company C. Only agents can solicit prospects for the purpose of selling coverage D. Brokers are not subject to the same laws and regulations as agents D. 59 1/2 - ✔✔ How old must an individual ordinarily be to begin taking funds out of a traditional IRA without penalty for premature distribution? A. 70 1/2 B. 65 C. 62
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D. 59 1/2 A. Multiple table extra premium method - ✔✔ Jack's past medical history indicated a 250% mortality rating. The premiums for his new coverage is determined from use of this figure. The rating method is A. Multiple table extra premium method B. Rated-Up in age method C. Lien Method D. Temporary flat extra premium method. C. Lien System - ✔✔ The rating procedure that reduces the amount of insurance granted for a stated premium is called the A. Rated-Up in age plan
B. Permanent flat extra premium C. Lien System D. Multiple premium depletion method D. Employed persons with a qualified retirement plan who are not self-employed - ✔✔ Keogh Plans are NOT available to A. Self-Employed individuals with no other income source B. Self employed individuals who may also be covered by a qualified corporate retirement plan C. Employees who have their own business on the side. D. Employed persons with a qualified retirement plan who are not self-employed B. The amount of life insurance that may be included in a qualified retirement plan - ✔✔ Incidental limitations refer to which of the following?
A. The conversation of group life insurance to individual life insurance B. The amount of life insurance that may be included in a qualified retirement plan C. The elements of risk selection D. Modified endowment contracts D. As of the policy effective date - ✔✔ Full protection by an insurance policy is provided A. When the first premium is paid B. As soon as the proposed insured passes a physical exam C. When the policy is received by the insured D. As of the policy effective date
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D. Are received tax free only if they result from previously taxed contributions - ✔✔ Distributions from a qualified retirement plan A. Are always received tax free B. Are taxed if only received in a lump sum C. Are taxed only if received in annuity installments D. Are received tax free only if they result from previously taxed contributions A. Buy-Sell Agreement - ✔✔ Using the proceeds from a policy on the life of a deceased business owner to purchase his or her business interested probably indicates a A. buy-sell agreement B. deferred compensation plan C. Keogh plan
D. split-dollar insurance plan B. The identity of the beneficiary - ✔✔ The principle difference between an entity purchase and a cross-purchase buy-sell agreement is A. The identity of the insured B. The identity of the beneficiary C. The amount of insurance D. The type of business B. Defined contribution plan - ✔✔ A Keogh plan in which a specified amount is invested each year is known as A. A defined benefit plan B. Defined contribution plan C. A qualified plan D. An endowment PLan
B. Insurance paid on policy dividends - ✔✔ Which of the following is taxable as income? A. Insurance policy proceeds paid in a lump sum B. Interest paid on policy dividends C. Policy Dividends D. Policy Loans A. May be purchased from an unauthorized insurer as surplus lines - ✔✔ Insurance coverages that cannot be obtained from any authorized insurers in a state A. May be purchased from an unauthorized insurer as surplus lines B. May be purchased from the state insurance departments C. Is unavailable from any other source
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D. May be purchased from any licensed nonresident agent D. Expressed Powers - ✔✔ Those powers of an insurance agent included in the agreement between the agent and the company are known as A. Implied powers B. Apparent powers C. Binding powers D. Expressed powers C. Will only pay the amount of insurance that Jonas' premium would have purchased at his correct age - ✔✔ When Jonas died, it was discovered that he was actually 6 years older than he had claimed when applying for an insurance policy. As a result of this discovery the insurance company A. Will not pay the policy proceeds
B. Will pay the proceeds the less amount of the extra premium that Jonas should have paid for the insurance C. Will pay only the amount of insurance that Jonas' premium would have purchased at his correct age D. Must pay all the proceeds A, Group life premiums are collected more often - ✔✔ Group life insurance ordinarily differs from individual life insurance in all of the following ways EXCEPT A. Group life premiums are collected more often B. Group life is usually lower in cost C. Group life does not usually require proof of insurability D. Group life builds no cash value
A. A Permanent or whole life policy - ✔✔ When converting a group life policy to an individual policy the debating group member's new policy must be A. A permanent or whole life policy B. A term life policy C. An endowment policy D. Any of the above B. Are tax deductible to the company at the time they are made to the employee - ✔✔ In a deferred compensation plan, payments made by the company to the employee A. are tax-free to the employee B. Are tax deductible to the company at the time they are made to the employee
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C. Cannot be deducted by the company at any time since this a non qualified plan D. Must be included in the employees taxable income before they are made A. 25,000 - ✔✔ Fully deductible contributions to an IRA may be made by an unmarried individual who is participating in an employer-sponsored retirement plan only if that individual earns no more than A. 25,000 B. 30,000 C. 40,000 D there is no income limit D. none of the above - ✔✔ Premiums for which of the following policies are deductible by an individual for income tax purposes? A. Universal Life Policy
B. Whole life policy C. Term Policy D. None of the above C. Only partly subject to federal taxation - ✔✔ Income payments made from an annuity are A. Always received entirely tax free B. Always taxed for their entire amount C. Only partly subject to federal taxation D. Taxed only by states
B. a bank certificate of deposit - ✔✔ Taxes are deferred on cash accumulations in all of the following EXCEPT A. A deferred annuity B. A Bank certificate of deposit C. A Keogh Plan. D. A universal life policy B. 10,000 per year - ✔✔ A gift by a single individual of premium payments for an insurance policy that belongs to someone else may be made without any gift of tax liability so long as those premium payments do not exceed A. 2,000 per year B. 10,000 per year C. 20,000 per year
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D. There is no limit on gifts of insurance premiums D. There is no income limit - ✔✔ A married couple, filling jointly, neither of whom belong to an employer-sponsored retirement plan, may make a fully deductible contribution to an IRA so long as their combined income does not exceed A. 20,000 B. 30,000 C. 40,000 D. There is no income limit B. Never - ✔✔ When may an insurance company arbitrarily increase the rate of premium charged to a particular policy owner? A. Whenever its board of director votes to do so B. Never C. When state laws permit D. Only within 30 days of insurance
D. The amount to convert is always less - ✔✔ A spouse's conversion privileges under a group policy are the same as the group member's EXCEPT A. insurability B. Conversion must be applied for within one month C. Premiums are based on attained age D. The amount to convert is always less - ✔✔ Part 3 Life Exam Questions 4 - 6 C. May be required to take a medical exam, even for a non- medical plan - ✔✔ For a contributory plan with some insurance companies, if the employee does not apply within the eligibility period he or she A. loses the opportunity to purchase group life insurance B must pay a penalty for applying late
C May be required to take a medical exam, even for a non-medical plan D must wait a full year before being again eligible to apply D. When the age of the insured has been overstated at the time the policy was issued - ✔✔ Which of the following is NOT a circumstance under which a company will pay a death claim for less than the face amount? A. When there is an outstanding policy loan, plus interest, which must be deducted from the face amount before payment is made to the beneficiary B. When then the premium is past due and in the grace period and therefore must be deducted from the face amount before the proceeds are paid C. When the age of the insured has been understated at the time the policy was issued and the fcae amount must be reduced before the payment
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D. When the age of the insured has been overstated at the time the policy was issued. B. The percentage of spouses must be the same as the percentage of covered members - ✔✔ When spouses are to be included in the member's group life insurance plans A. 50% of spouses are to be included in the members group life insurance plans B. The percentage of spouses included must be the same as the percentage of covered members C. The company decides which spouses are eligible D. They must prove their insurability A. pays lower premiums than with comparable individual insurance and usually doesn't have to prove insurability - ✔✔ An individual who has contributory group life insurance coverage at work
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A. pays lower premiums than with comparable individual insurance and usually doesn't have to prove insurability B. probably doesn't need to purchase additional permanent insurance C. may not convert it upon leaving the employer D. May include defendants provided they prove their insurability A. is limited to 2,000 - ✔✔ The amount of coverage on the spouse of a group life policy member that may be provided without tax consequences to the member A. is limited to 2,000 B. is limited to one-half of the member's coverage C. may be any amount that does not exceed the member's coverage
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D. is limited only by the members ability to pay C. may increase or decrease based on average age of the group and other factors - ✔✔ The premiums for a group of one-year renewable term life insurance policy A. are based on the average age of the oldest members of the groups B. may be never be increased the policy issued C. may increase of decrease based on average age of the group and other factors D. may increase or decrease as a reflection of changes in the company's operating expenses B. Is issued to each individual are covered by the group life insurance - ✔✔ A certificate of insurance A. Is issued to the employer to list which employees are covered by the group plan
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B. is issued to each individual are covered by the group life insurance C. contains all the policy information except the amount of protection and the beneficiary D. is not considered valid proof of insurance D. the employer, who then receives and retains a master policy - ✔✔ An application for group coverage is signed by the A. Employer, who then receives the individual policies to distribute to each individual insured B. individual insureds who then recieve individual who then receive individual policies C. Individual insureds, but a master policy is issued to the employer D. the employer, who then receives and retains a master policy B. a group of fewer than 10 members - ✔✔ A "baby group" is
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A. the name given a group life insurance policy that includes the employees children B. a group of fewer than 10 members C. a group of fewer than 100 members D. the name given a group life insurance policy that has been in effect less than one year A. one year renewable term - ✔✔ The most common group life insurance policy is A. one year renewable term B. decreasing term C. whole life
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D. one-year endowment B. Convert it to permanent insurance without proof of insurability, within a specified period - ✔✔ George, who has group policy, may upon leaving his place of employment A. Convert it to permanent insurance, provided he's insurable within a specific period B. Convert it to permanent insurance without proof of insurability, within a specified period C. convert it to a permanent insurance at his original age, without proof of insurability within a specified period D. not convert it to permanent insurance but may convert it to term insurance on an individual basis B. An executive bonus plan - ✔✔ An arrangement in which the employer provides the premium fir an employee-owned life insurance policy is called
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A. a section 457 deferred compensation plan B. an executive bonus plan C. A simplified Employee Pension (SEP ) plan D. A Keogh Plan C. non-qualified retirement plan - ✔✔ The lucrative lozenge company provides a 5,000 monthly income to retirees who served as senior executives. This benefit is not available to other retirees of the company this is an example of A. profit sharing plan B. qualified retirement plan C. non-qualified retirement plan
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D. defined contribution plan C. adverse risk selection is slight - ✔✔ If group life insurance in incidental to a job, a group is actively at work, and older employees are constantly being replaced by younger employees, then A. the installment expenses of the insurance company are generally high B. an insurance company is taking a greater risk in insuring the group C. adverse risk selection is slight D. the group is probably a good prospect for permanent insurance A. transfer of one IRA to another - ✔✔ A "roll over" refers to which of the following? A. a transfer of funds from one IRA to another
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B. Change from a standard to a substandard risk C. Contributions made by employees to a group life policy D. Taxation of withdrawals from a modified endowment contract A. salary level and length of service - ✔✔ The most common eligibility factors for non- contributory group life insurance are A. salary level and length of service B. Age and length of service C. length of service and job classification D. salary level and age
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C. sign an enrollment card, provide general and personal information and name a beneficiary - ✔✔ An employee desiring group coverage must A. sign an application, name a beneficiary and provide general personal information B. sign an enrollment form and application, provide information about the company and name a beneficiary C. sign an enrollment card, provide general and personal information and name a beneficiairy D. Sign an application, submit to a medical exam and name a beneficiary C. 100% - ✔✔ When a group plan is noncontributory what percentage of eligible employees must be covered? A. 50% B. 75% C. 100%
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D. The employer may make this decision C. stock and mutual insurance companies - ✔✔ Participating policies may be issued by: A. stock insurance companies only B. mutual insurance companies only C. stock and mutual insurance companies D. fraternal benefit societies C. to provide liquidity to pay estate taxes and administration and funeral costs - ✔✔ The primary purpose of a Section 303 redemption is A. liquidation of an estate's assets to provide income for survivors B. to provide income for a businessowner at retirement
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C. to provide liquidity to pay estate taxes and administration and funeral costs D. to enable a buisnessowner to redeem shares in payments of debts on a tax-advantaged basis C. are made on a pre-tax basis - ✔✔ With a 401(k) plan, employee contributions to the plan A. must be matched dollar for dollar by the employer B are made on an after tax basis C. are made on a pre-tax basis D. are received income tax-free at the time of distribution C. By insuring the excess with other companies through a reinsurance agreement or treaty - ✔✔ A company may write insurance in excess of its retention limits
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A. Under no circumstances B. when its an annual premium volume has exceeded the amount specified by the insurance C. by insuring the excess with other companies through a reinsurance agreement or treaty D. it is a fraternal benefit society B. Policy replacement - ✔✔ Twisting involves which of the following? A. Failure to remit premiums to the insurance company B. Policy replacement C. Splitting a commission with a client D. Promising coverage that cannot be delivered
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A. can make the change, but initial it - ✔✔ Should the proposed insured desire to correct an application he or she A. can make the change, but put initial it B must complete another application as no charges are ever allowed to an application C. can telephone the agent or an officer of the company and let them make the canoe D. must do so within 10 days B. Does not have the authority to tell the proposed insured that policy will be issued by the company as requested - ✔✔ An agent A. has the authority to tell a proposed insured that a policy will be issued bye the insurance company as requested
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B. does not have the authority to tell the proposed insured that policy will be issued by the company as requested . C. has the authority to approve all statements made by the proposed insnared on the application D. should verify all statements made by the applicant on the application B. representations - ✔✔ Statements made by an applicant for a life insurance policy that the applicant says are true to the best of his or her knowledge are known as A. warranties B. representations C. declarations D. endorsements
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D. an individual warrants a fact stated on the application - ✔✔ Each of the following would be an element in the definition of fraud EXCEPT A. an intention misrepresentation made by the applicant B. an intent to gain advantage C. statements relied upon by a second party who then suffer loss D. an individual warrants a fact stated on the application D. Issuance of capital stock - ✔✔ Which of the following is not permitted of. fraternal benefit society A. A representative form of government B. a ritualistic form of work
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C .Nonprofit organization D. Issuance of capital stock B;. in the state where its home office is located - ✔✔ A company is domiciled A. if its home office is in the United States B. in the state where its home office is located C. in any state where it has regional offices D. if it has been authorized to do business in a particular state B. the premium will be higher than normal risk - ✔✔ If the insurance company accepts a special class risk
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A. it then normally write insurance for that risk in small face amounts B. the premium will be higher than for normal risk C. the premium will be lower than for a normal risk D. the premium will be the same for a normal risk C. Inspection of domestic insurers - ✔✔ Which of the following is the subject of the Triennial Examination Report issued bu the state insurance commissioner? A. Insurance rates B. Insurance practices that have been prohibited C. inspection of domestic insurers D. reviews of insurance consumer complaints
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A. A maximum amount of risk a company will assume on any one policy - ✔✔ A retention limit is the A. maximum amount of risk a company will assume on any one policy B. maximum amount of insurance a company may write in any one state C. Minimum amount for which any one policy may be written D. Minimum amount of annual premium a company must write to be admitted to a state C. Economic Benefit Test - ✔✔ Which of the following is NOT used to determine a legitimate life insurance contract for the purpose of securing tax advantages? A. Cash value accumulation test B. Guideline premium test C. Economic benefit test
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D. Corridor Test D. unauthorized company - ✔✔ A company that has not received permission from an Insurance Commissioner to do business in his state is called an A. Admitted company B. Foreign Company C. Alien Company D. Unauthorized Company A. to fund a defined benefit plan - ✔✔ A group deferred annuity or an indiciural deferred annuity would be most likely used A. to fund a defined benefit plan B. to fund a defined contrition plan C. both A and B D. neither A or B
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A. Harold is the proposed insured; his company is the applicant - ✔✔ The Kalamzaoo Stove and Screen door company applies for life insurance on its key Vice President Harold. Kalamzoo S and SD Company is the premium payer and beneficiary and controls all right to the policy, Which of the following is true? A. Harold is proposed insured; his company is the applicant B. Harold is the applicant; his company is the proposed insured C. Harold is the policy owner ; his company is the applicant D. Harold is the policy owner; his company is the beneficiary B. Can either be a 401k plan or an IRA - ✔✔ A SIMPLE retirement plan A. can be a 401 k plan only B. Can either be a 401 k plan or an IRA C. Can be adopted by any size company
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D. has no limit on employee contributions C. the policy's third year - ✔✔ In many jurisdictions, permanent policies required to have some cash value by the end of A. 30 days after the policy issued B. The policy's first year C. The policy's third year D. The policy's fifth year A. All the back premiums due plus interest have been repaid less than three years have elapsed. - ✔✔ Once a policy has lapsed the insured usually can reinstate the policy, provided proof of insurability is shown if, A. all the back premiums due plus interest have been repaid and less than three years have elapsed. B. all back premiums due have been repaid and less than four years have elapsed
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C. All back premiums due plus interest have been repaid and less than one year has elapsed D. All back premiums due have been repaid regardless of how much time has elapsed - ✔✔ Life exam part 2 Questions 4-7 B. If the outstanding loan balance, plus interest equals or exceeds the cash value of the policy at which time the company could cancel the insurance - ✔✔ Why should a policy owner be especially careful when deicing to increase the amount of an outstanding policy loan? A. if for some reason the policy owner fails to repay the load, the insurance could cancel the policy B. If the outstanding loan the balance, plus interest, equals or exceeds the cash value of the policy at which time the company could cancel the insurance
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C. The interest charged on the loan, plus the loan amount, could exceed the face amount of the policy at which time the company can void the policy D. A policy owner should always avoid borrowing money from the cash value of the policy, as this prevents the payments of death benefits until the loan is repaid D. Will automatically institute the extended term option - ✔✔ An insured allows a permanent policy to lapse. Unless otherwise instructed, the insurance company A. is entitled to keep any accumulated cash values B. May use the cash value to purchase a reduced amount of permanent insurance C. Will automatically send the cash values of the policy to the policy owner D. Will automatically institute the extended term option, A. the cash value of the policy itself - ✔✔ Collateral for a policy loan is
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A. the cash value of the policy itself B. required for any loan over $500 C. Obtained by having the policy owner assign items of personal property to the insurance company D. is the death benefit of the policy which will be reduced to the amount of the loan D. Dividends - ✔✔ The cash value of a permanent life insurance policy can be used for all of the following except A. nonforfeiture options B. policy loans C. cash withdrawals D. Dividends
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C. Amanda can borrow against the policy's cash value - ✔✔ Amanda's life insurance policy names her sister Joyce as an irrevocable beneficiary of the policy proceeds. This means A. Amanda has surrendered her nonforfeiture options B. Joyce can borrow against the policy's cash value C. Amanda can borrow against the policy's cash value but only with Joyce's permission D. Joyce will receive any policy dividends that are paid B. the entire accumulate4d cash value of 6,000 less interest for one year - ✔✔ If a policy owner has 100,000 policy with an accumulated cash value of 6,000 the policyowner can borrow up to A. one half the cash value or 3,000 B. the entire accumulated cash value of 6,000 less interest for one year
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C. the entire 100,000 face amount of the policy D. twice the accumulated cash value, or 12,000 less interest for one year C. are lower in the early years of the contract - ✔✔ With a modified premium whole life contract, the premium payments A. are the same for the life of the contract B. are higher in the early years of the contract C. are lower in the early years of the contract D. during the life of the contract are variable according to the policy owner's ability to pay B. are deducted from the policy's death benefit - ✔✔ Amounts paid out under the accelerated benefits rider
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A. must be repaid with interest B. are deducted from the policy's death benefit C. can be used for any purpose D. are authorized only in the case of double indemnity A. paid up term coverage equal to that of the original policy - ✔✔ The extended term nonforfeiture option provides A. paid-up term coverage equal to that of the original policy B. reduced term coverage based on the accumulated cash value of the original policy C. term coverage based on the amount of premium the insured is able to pay
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D. term coverage equal to that of the regional policy with premiums based not the inured's attained age C. extended term option - ✔✔ The nonforfeiture option that provides the most life insurance protection is the A. cash surrender value option B. reduced paid up insurance option C. extended term option D. intertest option C. within three years after the policy lapses - ✔✔ A lapsed policy may usually be reinstated A. within 30 days after the grace period expires B. within one year after the policy lapses C. within three years after the policy lapses
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D. at any time provided the insured pays all back premiums plus interest and proves insurability B. policy loans can be made with both permanent and term policies - ✔✔ Each of the following statements about policy loans is correct EXCEPT A. the loan value of the policy cannot exceed the current cash value B. policy loans can be made with both permanent and term policies C. if a policy has cash value, the insurance company cannot refuse to lend the policywoner money D. a policy loan cannot be made on a policy until it has been in force long enough to accumulate some cash value A. the amount of protection will not vary during the life of the new policy - ✔✔ When a reduced paid- up policy is purchased
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A. the amount of protection will not vary during the life of the new policy B. the policy owners future premiums will be smaller than the old policy premiums C. the premiums is computed at the insured's original age D. the policy owner must bear a greater share of the insurance company's operating expenses - ✔✔ Life Exam Part 1 Question 22 D. premiums are payable in advance to the company or its authorized representative - ✔✔ When and to whom are life insurance premiums payable? A. premiums must be paid in advance to an authorized agent of the company B. premiums are payable in advance only to the company itself
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C premiums are payable in advance to any employee of the company D. premiums are payable in advance to the company or its authorized representative A. paid-up additions option - ✔✔ Using the policy dividends as a single premium to buy additional life insurance is called the A. paid-up additions option B. reduce premiums option C. cash payment options D. accumulation at interest option A. fixed-period option - ✔✔ The settlement option that provides for the proceeds plus interest to be paid in installments for a specified period of time is the
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A. fixed period option B. fixed amount option C. life income option D. interest option D. the policy's share of the company's excess funds of divisible surplus - ✔✔ What is a life insurance policy dividend? A. That portion of the premium not used to pay death claims B. The stockholder's return on his investment in the company C. Interest paid to the policy owner on the cash value accumulation of his permanent insurance policy
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D. the policy's share of the company's excess funds of divisible surplus - ✔✔ Life Exam Part 1 Question 28-31 C. number of anticipated policy owners - ✔✔ Each of the following is a factor in computing the premium for a life insurance policy EXCEPT A. the mortality rate B. investment experience C. number of anticipated policy owners D. operating expenses A. interest option - ✔✔ The settlement option under which the principal never decreases unless the beneficiary withdraws is the A. interest option B. fixed period option
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C. fixed amount option D. life income option B. refund aunty option - ✔✔ Teresa begins receiving monthly checks after her husbands death. A year later Teresa passes away and he daughter receives her monthly checks until the proceeds are exhausted. this settlement option is the A. straight life income option b. refund annuity option C. life income certain option D. join survivor life income option
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C. life income certain option - ✔✔ Jim wants his wife Dora to recieve payments for life however, if dora dies before 10 years have passed their daughter Elaine will continue to recieve the payments until the end of the 10 year period. Jims settlement choice is A. Straight life income option B. refund annuity option C life income certain option D. joint and survivor life income option C. length of the fixed period, face amount of the policy and age of the beneficiary - ✔✔ The factors that determine the amount of each payment under the fixed period settlement option are A. length of the fixed period and face amount of the policy
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B. length of the fixed period, face amount of the policy, and age of the beneficiary C. length of the fixed period, face amount of the policy, and interest D. length of the fixed period face amount of the policy, interest, age of the beneficiary B. a dividend earned but not yet paid in the year of the insured's death and paid with the death claim - ✔✔ what is a postmortem dividend? A. A dividend paid to the policy owner after normal dividends have been paid B. A dividend earned, but not yet paid, in the year of the insured's death and paid with the death claim C. a dividend earned, but not yet paid is the policy owner D. a dividend paid to the policy owner but not yet earned and deducted from a death claim
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B. assignment of the appropriate share of the company's operating expenses to each policy - ✔✔ With regard to life insurance policies, loading refers to A. assignment of the appropriate share of the company's mortality rate to each policy B. assignment of the appropriate share of the company's operating expenses to each policy C. the amount the company must keep on hand to meet its policy obligations D. the source of dividends the company pays to those holding participating policies A. total amount paid over the years will be greater than the face amount of the policy - ✔✔ When either the fixed period of fixed amount settlement option is selected, the A. total amount paid over the years will be greater than the face amount of the policy B. total amount paid over the years will be smaller than the face amount of the policy
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C. company will not guarantee payment of the full face amount D. total amount paid over the years will be exactly the same as the face amount policy D. joint and survivor life income option - ✔✔ When Sam a widower dies, his sons Jack and Mack share a monthly check of 2,000. Mack dies and Jack continues to recieve a check for $1000 until he dies. This life income settlement option is called . A. straight life income option B. refund annuity option C. life income certain option D. joint and survivor life income option B. Participating Policy - ✔✔ A policy that shares in the company's excess funds or divisible surplus is called a
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A. Permanent Policy B. Participating Policy C. NonParticipating Policy D. Term Policy C. higher premium than a non participating policy - ✔✔ A participating policy is likely to have which of the following? A. high face value B. a lower premium than nonparticipating policy C. higher premium than a non participating policy D. a front-end load
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A. Gross Premium - ✔✔ The premium that reflects mortality rates, assumed interest, and the policy's share of the company's operating system is called the A. Gross Premium B. Earned premium C. Standard Premium D. Net premium - ✔✔ Life Exam Part 1 Question 44 D. Net premium - ✔✔ The portion of the premium that is based only on mortality rates and assumed interest is called the A. gross premium B. earned premium C. standard premium D. net premium
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D. More Policyowners - ✔✔ Each of the following is a source of life insurance policy dividends EXCEPT A. savings in mortality B. additional interest earning C. reductions in operating expenses D. more policyowners B. Decrease - ✔✔ If a new mode of premium payments calls for less frequent payments the total annual dollar outlay by the policy owner will A. Increase B. Decrease C. Remain the same D. Vary C. Can be withdrawn affecting the cash value of the policy - ✔✔ Dividends left to accumulate at interest
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A. will reduce the policy cash value, if withdrawn B. result in the interest being tax-free C. can be withdrawn affecting the cash value of the policy D. can only be withdrawn when the policy proceeds are paid B. Be applied to the premium due - ✔✔ If the policy owner has chosen the reduce premium dividend option, dividends will A. be used to purchase additional insurance at a reduced rate B. Be applied to the premium due C. be used to purchase term insurance with a reduced face value
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D. Result in the policy's face value face value being reduced A. settlement option - ✔✔ The payment of the proceeds of a policy in other than a lump-sum cash payment is called a A. settlement option B. non-forfeiture value C. dividend D. facility of payment
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Nedd correct answer which explanation in deap 19. Delilah participates in her state's long-term care partnership program and purchased an LTCI policy with a $200,000 maximum benefit. At what point would Medicaid assume the role of primary (first) payor for her long-term care services? O a. when Delilah enters a nursing home O b. when the policy's elimination period has expired O c. when the policy has paid $200,000 in benefits O d. Never; a partnership policy guarantees that the insured will never have to rely on Medicaid for long-term care.
* CengageNOWv2 | Online teachin x Assignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false еВook Problem 13-56 (LO. 3) Margo receives a gift of real estate with an adjusted basis of $175,000 and a fair market value of $100,000. The donor paid gift tax of $15,000 on the transfer. If an amount is zero, enter "0". If Margo later sells the property for $110,000, what is her recognized gain or loss? Margo's basis for a gain is $ and her basis for a loss is $ If Margo later sells the property for $110,000, her recognized gain or loss is $ Next Previous 10:58 PM Check My Work
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Your client has made all of the following transfers. Which of these transfers will be excluded from the client's total gifts in the year made? Paid a hospital $11,000 for medical services rendered to a friend Paid a family member $15,000 so she could go to school Made a donation to the democratic party Made a contribution to the shriner's hospital, which provides free medical care to children A)III and IV   B)I and II   C)I and III   D)II and IV
2. Five entries required   Required: On January 1, 2024, a foundation made a pledge to pay $47,000 per year at the end of each of the next five years to the Cancer Research Center, a nonprofit voluntary health and welfare organization, as a salary supplement for a well-known researcher. On December 31, 2024, the first payment of $47,000 was received and paid to the researcher. On the books of the Cancer Research Center, record the pledge in January, assuming the appropriate discount rate is 5 percent on an annual basis. The appropriate present value annuity factor is 4.32950. Record the increase in the present value as of December 31. Record the receipt of the first $47,000 on December 31 and the payment to the researcher. Note: If no entry is required for a transaction or event, select "No Journal Entry Required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.   A.  On the books of the Cancer Research Center, record the…
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Ray Ray made the following contributions in 2021. Charity Property Cost FMV $ 5,200 5,250 15,150 16,300 $ 5,200 5,250 75,750 24,450 Athens Academy School United Way Cash Cash American Heart Association Antique painting First Methodist Church Coca-Cola stock Determine the maximum amount of charitable deduction for each of these contributions ignoring the AGI ceiling on charitable contributions and assuming that the American Heart Association plans to sell the antique painting to fund its operations. Ray Ray has owned the painting and Coca-Cola stock since 1990. Maximum Amount Cash contributions Property donations
Ray Ray made the following contributions in 2023. Charity Athens Academy School United Way American Heart Association First Methodist Church Cash Cash Cash contributions Property donations Property Antique painting Coca-Cola stock Maximum Amount Cost $ 8,050 5,850 15,300 15,250 FMV $ 8,050 5,850 Determine the maximum amount of charitable deduction for each of these contributions ignoring the AGI ceiling on charitable contributions and assuming that the American Heart Association plans to sell the antique painting to fund its operations. Ray Ray has owned the painting and Coca-Cola stock since 1990. 76,500 22,875
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In December 2019, the HAmilton County Board of Commissioners establised the Hamilton County OPEB Trust Fynd. Retired employees of Hamilton County can Oarticipate in postemployment beneifits through the Trust. The Trust is a single - empoyer derfined beneifit plan. The benefits provided are health insurance and life insurance.  In December 2019, the County made a one-time contribution to the fund of $15,000,000. No other events took place in 2019. Fiscal year Transcactions where as followed: 1.The County paid its actuarially determined annual contribution of $8,750,000. 2. Member (employee) contributions totalled $4,500,000. Of this $4,350,000 was collected by December 31 and the remainder will be collected in January 2021. 3. Cash Totaling $20,000,000 was invested in U.S. Government securities. 4. Interest totaling $1,407,000 was earned on these securities. Of this amount $1,346,000 was collected during the year. 5. Because the County offers a drug plan to retired employees, the…
In December 2019, the HAmilton County Board of Commissioners establised the Hamilton County OPEB Trust Fynd. Retired employees of Hamilton County can Oarticipate in postemployment beneifits through the Trust. The Trust is a single - empoyer derfined beneifit plan. The benefits provided are health insurance and life insurance.  In December 2019, the County made a one-time contribution to the fund of $15,000,000. No other events took place in 2019. Fiscal year Transcactions where as followed: 1.The County paid its actuarially determined annual contribution of $8,750,000. 2. Member (employee) contributions totalled $4,500,000. Of this $4,350,000 was collected by December 31 and the remainder will be collected in January 2021. 3. Cash Totaling $20,000,000 was invested in U.S. Government securities. 4. Interest totaling $1,407,000 was earned on these securities. Of this amount $1,346,000 was collected during the year. 5. Because the County offers a drug plan to retired employees, the…
In December 2019, the HAmilton County Board of Commissioners establised the Hamilton County OPEB Trust Fynd. Retired employees of Hamilton County can Oarticipate in postemployment beneifits through the Trust. The Trust is a single - empoyer derfined beneifit plan. The benefits provided are health insurance and life insurance.  In December 2019, the County made a one-time contribution to the fund of $15,000,000. No other events took place in 2019. Fiscal year Transcactions where as followed: 1.The County paid its actuarially determined annual contribution of $8,750,000. 2. Member (employee) contributions totalled $4,500,000. Of this $4,350,000 was collected by December 31 and the remainder will be collected in January 2021. 3. Cash Totaling $20,000,000 was invested in U.S. Government securities. 4. Interest totaling $1,407,000 was earned on these securities. Of this amount $1,346,000 was collected during the year. 5. Because the County offers a drug plan to retired employees, the…
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