Question 1

Loans may generally be obtained against the cash value of a personal life Insurance policy and policy loan proceeds

Options :

A : accelerate the benefits under the policy.

B : are not treated as taxable income.

C : are subject to Federal estate tax.

D : generate nontaxable interest income.

Answer: B

Question 2

Extended term Insurance can be selected under which whole life policy provision?

Options :

A : interest-only

B : nonforfeiture

C : cash value

D : settlement

Answer: B

Question 3

The proposed insured's statements on a life insurance application are considered to be

Options :

A : absolute statements.

B : misrepresentations.

C : representations

D : warranties

Answer: C

Question 4

When a beneficiary Inherits a traditional IRA, which of the following Is TRUE about taxation when the money is withdrawn? The beneficiary pays

Options :

A : no tax.

B : an estate tax.

C : capital gains tax.

D : income tax.

Answer: D

Question 5

An Insurer would consider which of the following In determining whether to accept a group life plan?

Options :

A : Grace period

B : Beneficiary

C : Average age

D : Dependents

Answer: C