Practice test

Insurance Practice Exam 18

Insurance Practice Exam 18 is a premium master 25-question test on MEC penalties, liability towers, multi-claimant auto limits, and complex insurance regulation scenarios.

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Question 1

1

A client age 55 has a $500,000 universal life policy with $90,000 cost basis and $140,000 cash value, classified as a MEC. She withdraws $60,000. The taxable amount and any penalty are:

Question 2

2

An estate plan uses a $2,000,000 survivorship policy in an ILIT with Crummey powers. The Crummey provision is needed to:

Question 3

3

A 60-year-old rolls a $400,000 qualified plan into a fixed annuity, then takes $25,000 the next year. The taxable amount is:

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