Big exam 1
All life insurance policies must have a free look. Period that last for at least.
20 days
Within how many days of requesting an investigative consumer report, must an insurer notify the consumer, in writing that the report will be obtained
3 days
An insurer has evidence that one of its insurance has submitted a fraudulent claim. To avoid penalties for not reporting fraud, the insurer must notify the Director no later than within.
60 days
Which of the following is not typically excluded from life policies
Death due to plane crash for a fare-paying passenger
Which of the following is not a duty of the Director?
Develop insurance rates
An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n)
Equity indexed annuity
All of the following actions can be described as twisting except
Explaining to client the advantages of permanent insurance over term and suggesting changing policies
Which statement regarding insurable risk is not correct
Insureds cannot be randomly selected
The policy owner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to a spouse, but the principal will be paid to their children when they reach a certain age. Which settlement option should the policy owner choose?
Interest only option
Which of the following statements is true about a policy assignment?
It transfers rights of ownership from the owner to another person.
Which of the following is not considered a misrepresentation as it pertains to unfair trade practices
Making comparisons between different policies
Untrue statements on the application unintentionally made by Insurance that if discovered would alter the underwriting decision of the insurance company are called
Material misrepresentations
If a life insurance policy develops cash value faster than a seven pay whole life contract it becomes
Modified Endowment Contract
Mr. low scheduled his exam, but failed to appear at the exam site to sit for the exam. Which of the following will occur.
Mr. Lowell will not receive a refund
Under a pure life annuity, an income is payable by the company
Only for the life of the annuitant
If an employer decides to change its life insurance policy to a similar one with a different ensure, which of the following describes the extent that replacement regulations will be exercised
Replacement regulations will not apply in the situation
Under the fair credit reporting act, if he consumer challenges, the accuracy of the information contained in a consumer or investigative report, the reporting agency must
Respond to the consumers complaint
Methods used to pay the death benefits to a beneficiary upon the insured's death are called
Settlement options
Upon policy delivery, the producer may be required to obtain any of the following, except
Signed waiver of premium
Which of the following may not be included in an insurance companies advertisement
That its policies are covered by a state Guaranty Association
If an insured withdraws a portion of the face amount in the form of accelerated benefits, because of your terminal illness, how will that affect the payable death benefit from the policy?
The death benefit will be smaller
Which of the following best describes the tax advantage of a qualified retirement plan
The earnings in a qualified plan accumulate tax deferred
Replacement rules do not apply in all of the following situations, except
The existing life insurance is a non-convertible term policy with less than 10 years to expire
All of the following statements are true, regarding installments for a fixed amount, except
The payments will stop when the annuitant dies.
Which of the following best describes what the annuity period is
The period of time during which accumulated money is converted into income payments
If an insurance premium is paid by the Policyowner to the agent, and the agent fails to remit that premium to the insured, which of the following statements is true
The policy will not laps since payment to the agent is the same as payment to the ensure
And insured stops making payments on a loan taken from his cash value policy. What will most likely happen
The policy will terminate when the loan amount with interest equals, or exceeds the cash value
Which of the following statements is correct regarding a whole life policy?
The policyowner is entitled to policy loans
If an individual has life insurance through his employer, and is terminated from his job, which of the following most accurately, describes his situation
The same insurer must provide an individual policy, without proof of insurability
Which of the following types of policies allows the policy owner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount
Universal Life
Which type of life insurance policy allows a policy owner to pay more or less than the plan premium
Universal Life
Which of the following is a key distinction between variable whole life and variable universal life products
Variable whole life has a guaranteed death benefit
All of the following are true regarding insurance policy loans, except
Policy loans can be made on policies that do not accumulate cash value.
A License producer must notify the Director within how many days of beginning to act in the life settlement broker capacity
10 days
All of the following lines of authority are considered limited lines, except
Accident and health insurance
In order to get a nonresident license in the state, a producer must
Apply and pay fee to a nonresident state that reciprocates
And insured receives an animal Life Insurance dividend check. What term? Best describes this arrangement
Cash option
Which of the following is another term for an authorized insurer?
admitted
The type of policy that can be changed from one that does not accumulate cash value to the one that does is a
convertible term policy
