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| Section | Objectives |
|---|---|
| Topic 1: Annuities | - Annuity types and features - Accumulation and payout options |
| Topic 2: Ethics and Professional Conduct | - Consumer protection standards - Ethical responsibilities of insurance producers |
| Topic 3: State Insurance Regulations | - Producer licensing requirements - Unfair trade practices and compliance |
| Topic 4: Insurance Fundamentals | - Basic insurance principles - Insurable interest and risk management concepts |
| Topic 5: Federal Regulations and Taxation | - Tax treatment of insurance products - Federal insurance-related regulations |
| Topic 6: Policy Provisions and Options | - Beneficiaries and policy ownership - Standard policy provisions |
| Topic 7: Life Insurance | - Life policy provisions and riders - Types of life insurance policies
|
| Topic 8: Accident and Health Insurance | - Disability income and medical expense coverage - Health insurance plans and structures |
1. Which of the following is commonly used to structure the payment of liability insurance settlements, lottery winnings, and other large sums?
A) An immediate annuity
B) An individual retirement account
C) A 403(b) tax-sheltered annuity
D) A modified endowment contract
2. How does the payment of an accelerated benefit affect a life insurance policy?
A) It increases the policy premium.
B) It decreases the death benefit.
C) It increases the cash value.
D) It decreases the grace period.
3. The beneficiary of a life insurance policy is the:
A) Person or entity designated in the policy to receive the death proceeds
B) Owner of the cash value fund
C) Insurer that issues the policy
D) Person or entity who has ownership interest in the policy
4. All of the following statements about universal life insurance are true EXCEPT:
A) Withdrawals of the policy cash value are permitted and sometimes subject to a surrender charge
B) Failure to pay the renewal premium automatically causes the policy to lapse
C) The Internal Revenue Code places a minimum limitation on the difference between the cash value and the death benefit
D) It may be written with either a level death benefit or an increasing death benefit
5. One premium payment covers which period of time in a single premium whole life policy?
A) To the insured's age 65
B) One month
C) One year
D) The full life of the policy
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: D |
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