Question 1

An Insurance producer may NOT withdraw funds from a premium trust account to

Options :

A : pay premium to insurers.

B : pay claims to an insured.

C : return deposits to insureds.

D : return premiums to an insured.

Answer: B

Question 2

The premium mode defines the

Options :

A : frequency of the premium payment.

B : premium amount

C : premium limit. I

D : method of premium payment (cash or credit).

Answer: A

Question 3

An annuitant dies during the accumulation period. What happens to the cash in the annuity?

Options :

A : it is paid to the beneficiary

B : it is paid to the IRS

C : it is paid into the estate

D : the company keeps it

Answer: A

Question 4

Which of the following policies generally does NOT have a cash value?

Options :

A : endowment

B : variable life

C : straight life

D : term

Answer: D

Question 5

She has a $200,000 whole life policy with a $50,000 cash value. She wishes to borrow $30,000 for the

purchase of a new van. Which of the following is TRUE in this situation?

Options :

A : Loans can only be taken for hardship situations.

B : Whole life policies do not have any loan provisions.

C : This type of loan is interest free.

D : If the loan is not repaid, the net death will be reduced

Answer: D

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