Exam Simulator 85

Question 1

True or false: Income derived from a Tax Sheltered Annuity is received income tax-free

Answer 1

False: treated as ordinary income

Question 2

Which type of policy contains a monthly mortality charge as well as self-directed investment choices?

Answer 2

Variable Universal Life

Question 3

The annuity that represents the largest possible monthly payment to an individual annuitant is

Answer 3

Straight Life Annuity

Question 4

If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act?

Answer 4

Insured’s contingent beneficiary

Question 5

A _____ is a statement that is considered guaranteed to be true

Answer 5

Warranty

Question 6

If a corporation pays the premium on a group life policy for its employees, the corporation is required to report how much additional taxable income for each employee?

Answer 6

None

Question 7

An individual who purchases a Life annuity is given protection against

Answer 7

The risk of living longer than expected

Question 8

A universal life policy is sometimes referred to as an unbundled Life Policy because the owner can see the interest earned, expense charges, and the

Answer 8

Cost of insurance

Question 9

A Return of Premium life insurance policy is

Answer 9

Whole life and Increasing term