Life & Health Insurance Exam | Questions with Verified Answers | 100% Correct (Latest 2025 / 2026)
Question:
which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE?
Answer:
it is taxed as ordinary income
Question:
dividends paid from a life insurance policy are
Answer:
issued by the insurer
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Question:
Which of the following Dividend options results in taxable income to the policyowner?
Answer:
accumulation at interest
Question:
Which of these Nonforfeiture Options continue a build-up of cash value?
Answer:
reduced paid-up
Question:
what action can a policyowner take if an application for a bank loan requires collateral?
Answer:
assign policy ownership to the bank
Question:
which of the following nonforfeiture options offers the highest death benefit?
Answer:
extended term 2 / 3
Question:
Which of these life insurance riders allows the applicant to have excess coverage?
Answer:
term rider
Question:
The common disaster clause provides that if both the insured and the sole name beneficiary were to die in a common accident, which of the following is true?
Answer:
This clause provides the payment of proceeds to the insured's estate
Question:
A primary beneficiary has died before the insured in a life insurance policy. A contingent beneficiary is also named in the policy. Which of the following will occur when the insured dies?
Answer:
proceeds will go to the contingent beneficiary
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