Insurance Quiz Part 1
All Of The Following Entities Regulate Variable Life Policies Except
A) The Guaranty Association.
B) Federal government.
C) The SEC.
D) The Insurance Department
All Of The Following Are Examples Of Risk Retention Except
Which Of The Following Is True Regarding The Annuity Period
A. It may last for the lifetime of the annuitant.
B. During this period of time the annuity payments grow interest tax deferred.
C. It is also referred to as the accumulation period.
D. It is the period of time during which the annuitant makes premium payments into the annuity.
Which Of The Following Is Not True Of Life Settlements
A. The seller must be terminally ill.
B. They could be used for a key person coverage.
C. They could be sold for an amount greater than the current cash value.
D. They involve insurance policies with large face amounts.
All Of The Following Are True About Variable Products Except
A. Policyowners bear the investment risk
B. the premiums are invested in the insurer’s general account
C. the minimum death benefit is guaranteed
D. the cash value is not guaranteed
Which Statement Is Not True Regarding A Straight Life Policy
A) It has the lowest annual premium of the three types of Whole Life policies.
B) Its premium steadily decreases over time, in response to its growing cash value.
C) The face value of the policy is paid to the insured at age 100.
D) It usually develops cash value by the end of the third policy year
Which Of The Following Is Not True Regarding Policy Loans
A. Policy loans can be repaid at death
B. An insurer can charge interest on outstanding policy loans
C. A policy loan may be repaid after the policy is surrendered
D. Money borrowed from the cash value is taxable
Which Of The Following Best Describes Fixed Period Settlement Option
A. Only the principal amount will be paid out within a specified period of time
B. The death benefit must be paid out in a lump sum within a certain period time period
C. Income is guaranteed for the life of the beneficiary
D. Both the principal and interest will be liquidated over a selected period of time
Fixed Annuities Provide All Of The Following Except
A) Guaranteed interest
B) Retirement funds
C) Hedge against inflation
D) Tax advantage
Which Of The Following Products Requires A Securities License
a) Equity Indexed annuity
b) Deferred annuity
c) Variable annuity
d) Fixed annuity
Which Statement Regarding Insurable Risks Is Not Correct
A. The insurable risk needs to be statistically predictable
B. An insurable risk must involve a loss that is definite as to cause, time, place and amount
C. Insureds cannot be randomly selected
D. Insurance cannot be mandatory