lifeins t10 - 43. A direct rollover or trustee-to-trustee...

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43. A direct rollover or trustee-to-trustee transfer from one pension trustee to another pension trustee is a)Subject to the 20% withholding tax if perfected within one year.b) Not subject to the 20% withholding tax.c) Subject to the 20% withholding tax. d)Subject to the 20% withholding tax if not perfected within 30 days. A direct rollover of retirement funds from one trustee to another trustee is not subject to the 20% withholding. #44. All of the following are general requirements of a qualified plan EXCEPT a) The plan must provide an offset for social security benefits.b)The plan must be communicated to all employees.c) The plan must be for the exclusive benefits of the employees and their beneficiaries. d)The plan must be permanent, written and legally binding. Plans must meet the general requirements established by IRS. #45. Which of the following individuals must have insurable interest in the insured? a)Beneficiaryb)Actuaryc) Assignee d) Applicant Insurable interest exists if an applicant is insuring his or her own life. #47. Under an extended term insurance policy, the policy cash value is converted to a) The same face amount as in the whole life policyb)The face amount equal to the cash valuec) A lower face amount than the whole life policy d)A higher face amount than the whole life policy Under this option the insurer uses the policy cash value to convert to term insurance for the same face amount as the former permanent policy. #48. An employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his a)Experience Rating.b)Group rate.c) Insurer's scheduled rate. d) Attained age. If an employee terminates membership in the insured group, the employee has the right to convert to an individual whole life policy without proving insurability. The insurer will determine what type(s) of policy an employee may convert to, but it must be issued at a standard rate, based on the individual's attained age. #49. The paid-up addition option uses the dividend a)To accumulate additional savings for retirement.b) To purchase a smaller amount of the same type of insurance as the original policy.c) To purchase a one-year term insurance in the amount of the cash value. d)To reduce the next year’s premium. With the paid-up additions option, the dividends are used to purchase a single premium, additional permanent policy. #50. What type of annuity can be purchased with a single premium and provides benefit payments
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This note was uploaded on 11/22/2010 for the course LIFE INSUR 245 taught by Professor Knowles during the Spring '10 term at El Centro College.

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lifeins t10 - 43. A direct rollover or trustee-to-trustee...

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