Chap 4-6
how many continuing education hours must a producer complete on the subject of ethics every licensing period
3 hours
if a licensee changes his or her residence address, within how many days must the director be notified?
30 days
how long must an insurer keep all advertisements on file?
4 years
the number of credit required to obtain a full insured status to receive social security benefits is
40
The 10% early withdrawal penalty from an IRA can be waived for
Catastrophic medical expenses
what does the Guaranty Association guard against?
Insurer insolvency
if a producer's license was revoked for a violation of the insurance code, when can the producer apply for a new license?
after 3 years
If a life policy does not pass the 7-day test, that policy
becomes a MEC (Modified Endowment Contract)
basic information about life insurance policy can be found in
buyer's guide
an agent who deliberately make a malicious statement about another insurance company is guilty of
defamation
in group life policies, individual certificates are given to
each insured person
what is the requirement for a number of employees in a SIMPLE plan
no more than 100
ensuring that a life insurance product matches the client's investments objectives, financial status, tax status, and needs
suitability
misappropriating funds belonging to the insurer, the producer's license will be
suspended or revoked
participating in the practice of rebating, a producer's license will be
suspended or revoked
the advantage of qualified plans to employers is
tax-deductible contributions
an insurance policy may pay an accelerated benefit if the insured needs the money for which of the following
terminal illness treatment
what is the term for an insured who enters into a viatical settlement
viator
comparison of policy costs can be found in
buyer's guide
explanation on how to choose the amount and type of insurance is provided in
buyer's guide
when an agent obtains an insurance license for the primary purpose of writing insurance for himself, his spouse, or his own business, this is called
controlled business
a key person insurance policy benefit will pay for what?
cost of training a replacement
sharing commissions with another agent, a producer's license will be revoked or suspended, true or false
false
what is an example of a producer's fiduciary responsibility
forwarding the premiums to the insurer
with personal life insurance, the lump-sum death benefit is received by the beneficiary
income tax free
an employee quits his job and converts his group insurance to an individual policy. what will the premium for the individual policy be based on?
insured's attained age
a producer who resides in another state, but is licensed to write insurance in this state
nonresident producer
Generally, the premium paid for personal life insurance is
not tax deductible
specific information about the policy applied for will be found in
policy summary
an agent who offers a cash reward to a prospect for buying a policy is guilty of
rebating
what is the process by which a life insurance policy or annuity is reissued with a reduction in cash value or converted to reduced paid-up insurance?
replacement
the director of insurance is not responsible for
setting premium rates
retirements, disability, and survivors benefits are
social security benefits
what will not be in the buyer's guide
specific information about the policy applied for
if the director issues a cease and desist order, that mean the insurer must
stop committing a paritcular violation
what insurance arrangement will be appropriate for a business purchasing life insurance on its general manager
third-party ownership
a salaried employee who advertises and solicits insurance must hold a what type of license
producers license in this state
what is the purpose of requiring licenses for persons who transact insurance
protect the general public
a viatical settlement is an arrangement between a viatical company and a/an
terminally ill insured
