Question
A. Which of the following is TRUE regarding a whole life insurance policy that pays a dividend? When the dividend is paid, it is taxed
A. Which of the following is TRUE regarding a whole life insurance policy that pays a dividend?
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When the dividend is paid, it is taxed to the policyholder as an ordinary dividend
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The dividend is automatically credited against future premiums
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The dividend is paid directly to the beneficiary on the policy
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When the dividend is paid, it can be used to purchase additional coverage
B. Each employee covered under a group life policy MUST be given:
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An individual certificate of insurance
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A certificate of insurance for each family member covered
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An insurance identification card for each family member covered
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A copy of the group master contract
C. Universal life products are flexible premium policies that are:
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Interest sensitive
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Guaranteed issue
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Non-renewable
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Term only
D. Which of the following statements is CORRECT about life insurance proceeds paid to a named beneficiary?
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They are exempt from claims by the insurance creditors
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They are subject to excise taxes
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They are held until the insureds will is probated
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They must be paid in a lump sum
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