Question 1

1. A term rider typically provides for a conversion period, during which the rider may be converted into permanent coverage without evidence of insurability.

   True

   False

2 points

Question 2

1. Amounts received by a terminally ill insured under an accelerated death benefit provision are excluded from gross income.

   True

   False

2 points

Question 3

1. A wavier of premium rider is a form of disability insurance.

   True

   False

2 points

Question 4

1. The automatic premium loan provision is activated when

   		the policy cash value drops below the bailout rate
   		the agent-of-record files the correct form
   		the applicable Table I rate is exceeded by at least 10%
   		a policy premium remains unpaid at the end of the premium payment grace period

2 points

Question 5

1. An annuity is the only investment that can guarantee the investor will not outlive his or her income.

   True

   False

2 points

Question 6

1. Variable annuities not are considered securities under federal law.

   True

   False

2 points

Question 7

1. If the annuitant dies after annuity benefit payments have started under a