RMI 211 Exam 4
1. A contingency beneficiary in a life insurance policy has the right to: - ️ Receive the policy proceeds if the primary beneficiary dies before the insured.
2. A legal reserve in life insurance is a result of: - ️ Excess premiums in the early policy years being invested at c...
1. A contingency beneficiary in a life insurance policy has the right to:
- ✔️ Receive the policy proceeds if the primary beneficiary dies before the insured.
2. A legal reserve in life insurance is a result of:
- ✔️ Excess premiums in the early policy years being invested at compound interest.
3. All of the following are nonforfeiture options found in cash value life insurance policies EXCEPT:
- ✔️ Reduction of premiums.
4. All of the following are requirements that must be satisfied before premiums are waived under a
waiver-of-premium provision EXCEPT:
- ✔️ The insured must satisfy a 2-year waiting period.
5. All of the following statements about ordinary life insurance are true EXCEPT:
- ✔️ The face amount of the policy is paid if the insured lives to age 65.
6. All of the following statements about the conversion of a term policy are true EXCEPT:
- ✔️ Evidence of insurability is required before a conversion is permitted.
7. All of the following statements about the income tax treatment of individually-purchased life
insurance are true EXCEPT:
- ✔️ Premiums paid for the individual life insurance are a tax-deductible expense.
8. An immediate life annuity offers all of the following benefits EXCEPT:
- ✔️ Immediate annuity payments are entirely exempt from federal income tax.
, 9. Ann is considering the purchase of a life insurance policy with these characteristics:
- ✔️ Universal life insurance.
10. Becky is considering the purchase of a whole life policy on her own life. Which provision can Becky
attach to her life insurance policy to address the concern of becoming disabled?
- ✔️ Waiver-of-premium provision.
11. How much taxable income relating to life insurance must Brad report for federal income tax
purposes?
- ✔️ $0.
12. The 4 percent kept by the insurer is a:
- ✔️ Surrender charge.
13. Consumer experts typically recommend all of the following rules when buying life insurance EXCEPT:
- ✔️ Ignore all factors other than cost.
14. Daryl, age 42, can avoid immediate taxation of his $30,000 defined contribution pension plan
balance by:
- ✔️ Using an IRA rollover account.
15. Disadvantages of life insurance settlement options include which of the following?
- ✔️ Both I and II.
- I. Higher yields can often be obtained elsewhere.
- II. Life income options have limited usefulness at younger ages.
16. During the funding period, the premiums paid for a variable annuity are used to purchase:
- ✔️ Accumulation units.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller CertifiedGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.39. You're not tied to anything after your purchase.
