1. Which of the following statements concerning optional life insurance policy provisions is (are) correct?
I. The accelerated benefits provision allows for withdrawal of a portion of a policy's death benefit if the insured is terminally ill.
II. The assignment provision describes the conditions under which the policy owner may have the right to transfer some or all ownership rights to another person.
A. I only
B. II only
C. Both I and II
D. Neither I nor II
2. Which of the following statements concerning annuities utilized in structured settlements is (are) correct?
I. If the claimant is expected to have a shorter life expectancy due to the injuries, the cost of a life annuity will be at rates higher than standard.
II. If the claimant is expected to have no reduction in life expectancy due to the injuries, the cost of a life annuity will be at standard rates.
A. I only
B. II only
C. Both I and II
D. Neither I nor II
3. List the methods used to finance long-term care needs. Who is eligible for Medicaid to pay for long-term care?
4. All the following statements concerning the financing of Social Security and Medicare are correct EXCEPT:
A. Payroll taxes are deposited into trust funds from which benefits and administrative costs are paid.
B. The tax rate for self-employed persons is one-half of the combined tax rate for employees and employers.
C. The earnings base on which taxes are paid increases annually based on changes in the national level of wages.
D. The program uses a system of partial advance funding.
5. In what circumstances would financial advisors recommend a life insurance policy gifting program to their clients?
6. Which of the following statements concerning annuities utilized in structured settlements is (are) correct?