Ad Banker Comprehensive Exam 2024 Questions And Answers

If a policyowner paid $18,000 in premiums for a policy that is cashed in for $21,000, how much of the policy's cash surrender value would be subject to federal income tax? A $18,000 B $3,000 C Zero D $21,000 {Ans: B}All of the following statements regarding an insurance application are correct, except: A It is not included as part of the contract B It is a formal written request by an applicant to an insurer requesting a policy C It is the primary source of information for underwriting purposes D It must be signed by at least the applicant and producer {Ans: A}The main benefit of 501(c)9 trusts is: A Costs of setting up these trusts are always lower than other types of plans B That distributions from the trust are always received tax-free C Contributions to these trusts may be deducted immediately, instead of when benefits are distributed D Contributions to these trusts are not tax deductible at all {Ans: C}An insurance company, upon receiving proof of death, may not delay a death claim settlement beyond a period of: A 1 month B 3 months C 2 months D 6 months {Ans: C}With a Profit