Which of the following statements is true regarding key person disability income insurance?

a. Premiums are not tax-deductible, but benefits are received tax-free.

b. Premiums are tax-deductible, but benefits are taxable.

c. Premiums are tax-deductible and benefits are tax-free.

d. Premiums are not tax-deductible and benefits are taxable.

Answer: a. Premiums are not tax-deductible, but benefits are received tax-free.

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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The pro rata liability clause is designed to protect the principle of
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Fixed annuities provide each of the following EXCEPT
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A domestic insurer issuing variable contracts must establish one or more
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The pro rata liability clause is designed to protect the principle of
The two major actions required for a policyholder to comply with the Reinstatement Clause are
Life insurance policies will normally pay for losses arising from
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Ambiguities in an insurance policy are always resolved in favor of the
In an insurance contract, the applicant's "consideration" is the
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How many pair of glasses in a 12-month period will a vision expense insurance plan cover?
The voluntary relinquishment of a legal right is called
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Which nonforfeiture option provides coverage for the longest period of time?
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Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE?
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All of the following are true regarding a decreasing term policy EXCEPT
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The pro rata liability clause is designed to protect the principle of
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What is the other term for the cash payment settlement option?
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What is the purpose of establishing the target premium for a universal life policy?
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