Question 1

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

Question 2

When a beneficiary Inherits a traditional IRA, which of the following Is TRUE about taxation when the money is withdrawn?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 3

Under the children's term rider, what occurs when a child reaches the specified age? He or she

Options :

A : automatically becomes the beneficiary of the life insurance policy.

B : must show evidence of insurability to remain covered.

C : may Increase the term coverage of the rider.

D : is eliminated from coverage.

Answer: B

Question 4

Insurance agents have duties and responsibilities to the insured and the insurer. Which of the following responsibilities does an agent owe the insured during the policy year?

Options :

A : Help the insured file and follow up on claims.

B : Notify the insurance department when claims are paid.

C : Work with rating bureaus to establish insurer ratings.

D : Pay the insured-s premiums if they are unable to do so.

Answer: A

Question 5

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