Study Guide for Mass Insurance License
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Review Missed Questions
Take some time to review the questions you missed in the session you just completed. This list shows all of the questions that you missed in the session you just completed. The answer you selected is in bold. The correct answer is highlighted in yellow. | | #1. | Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit? | | a) | Universal Life – Option A | b) | Universal Life – Option B | c) | Equity Indexed Universal Life | d) | Variable Universal Life | | | Universal Life Option A (Level Death Benefit option) policy must maintain a specified "corridor" or gap between the cash value and the death benefit, as required by the IRS. If this corridor is not maintained, the policy is no longer defined as life insurance for tax purposes, and consequently loses most of the tax advantages that have been associated with life insurance. | | #6. | Grace is the primary beneficiary of her grandfather's life insurance policy. Upon his death, she wants some income from the death benefit, but wants the face amount to be conserved. Which settlement option should she choose? | | a) | Interest only option | b) | Life income with period certain | c) | Delayed income option | d) | Fixed amount option | | | On the "interest only" settlement option, Grace would receive the interest earned by the face amount, but the face amount would remain. | | #7. | Which mode of premium payment will not incur a service fee? | | a) | Monthly | b) | Timely payment will not result in service fees. | c) | Annually | d) | Quarterly | | | Annual premiums are the only modes of payment that do not result in service fees. | | #8. | All of the following are
Top of Form
Powered by ExamFX - Online Training & Assessment * Main Menu * My Account * Contact Us * Log Out
Review Missed Questions
Take some time to review the questions you missed in the session you just completed. This list shows all of the questions that you missed in the session you just completed. The answer you selected is in bold. The correct answer is highlighted in yellow. | | #1. | Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit? | | a) | Universal Life – Option A | b) | Universal Life – Option B | c) | Equity Indexed Universal Life | d) | Variable Universal Life | | | Universal Life Option A (Level Death Benefit option) policy must maintain a specified "corridor" or gap between the cash value and the death benefit, as required by the IRS. If this corridor is not maintained, the policy is no longer defined as life insurance for tax purposes, and consequently loses most of the tax advantages that have been associated with life insurance. | | #6. | Grace is the primary beneficiary of her grandfather's life insurance policy. Upon his death, she wants some income from the death benefit, but wants the face amount to be conserved. Which settlement option should she choose? | | a) | Interest only option | b) | Life income with period certain | c) | Delayed income option | d) | Fixed amount option | | | On the "interest only" settlement option, Grace would receive the interest earned by the face amount, but the face amount would remain. | | #7. | Which mode of premium payment will not incur a service fee? | | a) | Monthly | b) | Timely payment will not result in service fees. | c) | Annually | d) | Quarterly | | | Annual premiums are the only modes of payment that do not result in service fees. | | #8. | All of the following are