Avoidance is a risk management method that seeks to reduce the loss frequency all the way to zero. True

False

Life insurance in a qualified plan can be used to pay estate costs or fund a buy-sell agreement. True

False

The major difference between the two types of buy-sell agreement is the identity of the buyer. True

False

The Keogh Plans are defined contribution plan only. True

False

401K plan is a defined benefit plan. True

False

The employer is not qualified for the group life insurance for his employees. True

False

Employer-employee relationship doesn't need to exist for the 457 deferred compensation plan. True

False

Claims made on property or casualty insurance are rarely negotiated. True

False

Sole proprietorship has single owner with business and personal assets being one and the same. True

False

The business is both the policyowner and beneficiary of the key employee insurance. True

False

Salle is born in 3/30 of 1982. According to the current IRS rules, she needs to start withdrawing her retirement income on 3/30 of 2052. True

False

The word contributory refers to the status of employer contribution. True

False

If the individual or spouse doesn't have employer-maintained retirement plan, his IRA contribution is fully deductible. True

False

With fixed interest rate, the interest rate cannot be changed once it is set. True

False

Generally, with the split-dollar plan, the employer's contribution to the plan equals the annual rise in the policy's cash value, while the employee's payment decline annually. True

False

As with group life insurance, the employer can't pick and choose employees to be included in the split-dollar insurance plan. True

False

The insurance company discovered that Tom's insurance application is incomplete. Therefore, the company may rescind or cancel the contract. True

False

The agent will complete proof of death required by the insurer. True

False

A mistake in the life insurance application can be correct by an agent on behalf of the life insurance applicant with the applicant's written approval. True

False

With the credit life insurance, the creditor acts as the life insurer. True

False

When the insured dies with outstanding policy loan and interest, the beneficiary gets the death benefit, minus the policy loan, minus the interest accrued. True

False

Concealment is the withholding of facts that affect the company's decisions on issuing a policy. True

False

The consequence of disqualifying for life insurance would impact both policyowner and the beneficiary. True

False