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Taxes, Retirement & Other Insurance Concepts Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. Which of the following is a form of an executive bonus?

Question 2 2. What kind of investment product is involved in a group carve-out plan?

Question 3 3. Which type of retirement benefit plan allows employees to contribute with money that's already been taxed?

Question 4 4. What is a key difference between pension plans and 401(k) plans?

Question 5 5. Which is a characteristic of a qualified retirement plan?

Page 2

Question 6 6. Which is an example of a defined contribution plan?

Question 7 7. What are the two types of group life insurance policies?

Question 8 8. Which of the following describes a conversion privilege?

Question 9 9. Life insurance policy holders pay monthly or annual _____; when selling a policy, both the seller and buyer should agree on who will pay these payments after the sale.

Question 10 10. As viatical settlements gained popularity, some insurance companies began offering _____ in their policies, allowing terminally ill patients to receive a percentage of their benefits before death.

Page 3

Question 11 11. Who owns the key person insurance policy?

Question 12 12. Who is the beneficiary of a key person insurance policy?

Question 13 13. How are group life insurance dividends taxed?

Question 14 14. Which rule describes an employer arranging a group life insurance plan so that some employees subsidize other employee's costs?

Question 15 15. Which of the following characteristics about life settlements is INCORRECT?

Page 4

Question 16 16. Which of the following is NOT an advantage for the seller of a life settlement?

Question 17 17. The person in the policy that receives the death benefit once the insured passes away is called the _____.

Question 18 18. A third party owned insurance policy has which three different parties?

Question 19 19. Which of the following is a disadvantage to life insurance as a funding option for a buy-sell agreement?

Question 20 20. Which of the following arrangements could be a good situation to go through life insurance in a buy-sell agreement for a business?

Page 5

Question 21 21. Which type of retirement plan is a large company most likely to offer today?

Question 22 22. A person with a defined benefit retirement plan receives which of the following?

Question 23 23. If Jon pays for a term life insurance policy with after tax dollars, how will the proceeds to his heirs be taxed?

Question 24 24. Which of the following is TRUE of the taxation of the cash value of a surrendered whole life insurance policy?

Question 25 25. Which of the following is an example of self-insurance?

Page 6

Question 26 26. Joe is a 48-year-old, non-smoking male living in Virginia and has $35,000 in his savings account. He drives a 10 year old SUV that is worth about $5,000. He is married, a homeowner, and has two kids. Which of the following insurance products should be his lowest priority to purchase?

Question 27 27. The IRS imposes a five-year test for which type of insurance policy?

Question 28 28. The MEC was created as a response to investors using life insurance as a(n) _____

Question 29 29. How many times your pay is it suggest you have in life insurance?

Question 30 30. Why should funeral expenses not be discounted?

Taxes, Retirement & Other Insurance Concepts Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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