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Which of the following dividend options is taxable?

A.

1-year term.

B.

Paid up additions.

C.

Return of premium.

D.

Accumulation at interest.

An insured owns a whole life insurance policy on himself. He would also like coverage for his minor son and/or daughter. One way the Insured can accomplish this goal Is to purchase a

A.

child term rider.

B.

family income rider.

C.

famitp maintenance rider.

D.

guaranteed insurability rider.

Which of the following individuals has the right to name a beneficiary?

A.

producer

B.

owner

C.

Insured

D.

assignee

Something that increases the probability of loss is called

A.

a risk.

B.

a peril.

C.

a hazard.

D.

an exposure.

The purpose of insurance Is to

A.

avoid risk.

B.

reduce risk.

C.

transfer risk.

D.

increase risk.

Who can surrender an annuity during the accumulation period?

A.

The company.

B.

The beneficiary.

C.

The annuitant.

D.

The policyowner.

The premium mode defines the

A.

premium limit.

B.

premium amount.

C.

frequency of the premium payment.

D.

method of premium payment.

When a policy owner requests a partial surrender from her Universal Life Policy she Is requesting which of the following?

A.

Cash withdrawal.

B.

A loan from the policy.

C.

Surrender of the policy.

D.

Decrease In the coverage amount.

Upon the divorce of an insured who designated their spouse as the beneficiary, which of the following actions will result?

A.

the insured must pay 50% of the premiums paid to the spouse named as the beneficiary

B.

the spouse designated as beneficiary will remain an irrevocable beneficiary

C.

the designation of the spouse as a beneficiary is revoked

D.

the policy will automatically be terminated

What annuity payout option has no additional payouts regardless of when the annuitant dies?

A.

Life only.

B.

Cash refund.

C.

Life certain.

D.

Installment refund.