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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 yellow "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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Question 1 1. Which of the following is a disadvantage to life insurance as a funding option for a buy-sell agreement?

Question 2 2. You are thinking of funding a buy-sell agreement with a partner. However, her share of ownership will be nearly 70%. Which of the following scenarios is possible with this arrangement?

Question 3 3. What is a third party life insurance policy?

Question 4 4. Who has the right to collect dividends, cash out the policy, name a beneficiary and makes the payments on a third party owned insurance policy?

Question 5 5. What is a key difference between pension plans and 401(k) plans?

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Question 6 6. Justin makes $1000 per paycheck. He has a 401(k) plan and his employer has a 3% matching program. Justin decides he'd like to be more aggressive with his contributions, so he decides he's going to contribute 5% per paycheck. How much does this mean his employer will contribute per paycheck?

Question 7 7. Which of the following statements about viatical settlements is true?

Question 8 8. 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 9 9. Which of the following methods is used to tax the proceeds (withdrawal or loan) from an MEC?

Question 10 10. The IRS imposes a five-year test for which type of insurance policy?

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Question 11 11. A person with a defined benefit retirement plan receives which of the following?

Question 12 12. How might Social Security continue to be funded going forward?

Question 13 13. Who is a key person?

Question 14 14. Which of the following is NOT a category of loss covered by key person insurance?

Question 15 15. 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?

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Question 16 16. Which of the following is generally true of the relationship between premiums and deductibles?

Question 17 17. What are some things to keep in mind when deciding how much life insurance to have?

Question 18 18. Why should funeral expenses not be discounted?

Question 19 19. Which of the following is a form of an executive bonus?

Question 20 20. A non-qualified retirement plan fails to qualify to which law's standards?

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Question 21 21. Which of the following defines the profit earned by the purchaser of a life settlement?

Question 22 22. Who is the owner of the policy after the insured sells it in a life settlement?

Question 23 23. How are group life insurance dividends taxed?

Question 24 24. Which of the following is true of the taxation of group life insurance premiums?

Question 25 25. Which is a characteristic of a qualified retirement plan?

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Question 26 26. Who takes on the risk of managing funds in a defined benefit plan?

Question 27 27. Which of the following is TRUE of the taxation of the cash value of a surrendered whole life insurance policy?

Question 28 28. Why is a life insurance dividend not subject to taxation?

Question 29 29. Which of the following describes a conversion privilege?

Question 30 30. Which of the following is a disadvantage of a contributory group life insurance policy?

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 yellow "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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