Question

Life insurance is considered a valued policy because

	A.	Life insurance covers longevity risk.
	B.	The insurance payout is a pre-determined face amount and has nothing to do with the actual amount of loss of human life.
	C.	Life insurance allows for ownership transfer.
	D.	There is no money back if policyholders surrender their policies.

Which of the following is true about the various requirements of a qualified retirement benefit plan?

	A.	Advance funding is required for qualified defined-benefit plans.
	B.	There is no tax consequence if an employee keeps working past the age of 70 ½ and still hasn’t started liquidating funds in his qualified retirement plans.
	C.	There is no limit on how much employers and employees can contribute to a qualified pension plan on a tax deductible basis.
	D.	If the employee chooses to take out retirement income before age 59 1/2, he may be subjected to a tax penalty.

Which of the following statements is true?

	A.	Death bonds investment is positively correlated with stock market investment.
	B.	When a property insurance policy is transferred (sold) to an investor, the investor is said to have invested in death bonds.
	C.	Death bonds are highly regulated by the government.
	D.	Investors of death bonds make more money if the insured dies earlier.

Lucy owns a nice coffee house near the beach. She has some antique tables and beautiful mugs in the coffee house, which draw in quite some customers for her. Which of the following is Lucy’s real property?

	A.	Customers
	B.	Antique tables
	C.	The house
	D.	The beautiful mugs

Which of the following is an example of tangible property?

	A.	Patent
	B.	Office building
	C.	Reputation
	D.	Electronic medical records

Answer 1

1.

Life insurance is considered a valued policy because

Correct answer is

B.	The insurance payout is a pre-determined face amount and has nothing to do with the actual amount of loss of human life.

2.

Which of the following is true about the various requirements of a qualified retirement benefit plan?

Correct answer is

D.	If the employee chooses to take out retirement income before age 59 1/2, he may be subjected to a tax penalty.

3.

Which of the following statements is true?

Correct answer is

D.	Investors of death bonds make more money if the insured dies earlier.

4.

Lucy owns a nice coffee house near the beach. She has some antique tables and beautiful mugs in the coffee house, which draw in quite some customers for her. Which of the following is Lucy’s real property?

Correct answer is

C.

The house

5.

Which of the following is an example of tangible property?

Correct answer is

B.	Office building