Term
| 1. If a policyowner cash surrenders a life insurance policy, the insurer could assess a surrender charge. (T or F) |
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| 2. Which type of life insurance policy pays a dividend? (T or F) |
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| 3. When using the Human Life Value method of determining a need, an agent would not consider any past income of the prospective insured. (T or F) |
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| 4. Key Person Insurance is used to provide funds for all of the following, except: A) Recruiting costs. B) Training expense. C) Overhead expense. D) To replace lost cash flow. |
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| 5. Key Person Insurance insures the employee's retirement plan. |
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| 6. Kathryn's employer is both the owner and beneficiary of her Key Employee policy. What percentage of the premium will Karen, the owner, be allowed to deduct at tax time for business expense? |
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| 7. What is one of the greatest differences between group and individual life insurance policies? |
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Definition
| -The Full Latitude of ownership |
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| 8. Who is not considered when computing the Emergency Reserve Fund for the family when doing a Needs Analysis? |
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| 9. Which of the following is false concerning term life insurance? A) Premium outlay is low B) Provides a means to purchase large amounts of insurance C) Matures at age 100 |
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| 10. Which of the following is a type of a Buy-Sell Agreement funded by life insurance? A) Entity Proceeds B) Cross Purchase C) Key Person Coverage |
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| 11. All of the following are types of a Buy-Sell Agreement, except: A) Entity Cross Purchase Plan B) Cross Purchase Plan C) Entity Plan |
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Definition
| -A) Entity Cross Purchase Plan |
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Term
| 12. One purpose of a Buy-Sell agreement is: to establish the value of a business before the agreement is activated. (T or F) |
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