Colorado Life - The Exam Simulator

The following is true regarding the ___ - It is a life contingency option. - The beneficiary receives the remainder of the principal amount upon the annuitant's death. - Payments can be made in installments and as a single cash refund.

Life with Guaranteed Minimum annuity settlement option

There are several types of whole life policies. The first three, ___, are the basic forms of whole life. Level term is a type of term insurance.

Straight Life, Limited Payment, and Single Premium

All of the following are TRUE statements regarding the ___ - The policyholder has the right to withdraw the accumulations at any time. - The annual dividend is retained by the company. - The interest is credited at a rate specified by the policy.

accumulation at interest option

The following is true regarding the ___ - It is the period during which the annuity payments earn interest. - It is the period over which the owner makes payments into an annuity. - It is also known as the pay-in period.

accumulation period of an annuity

What does "level" refer to in level term insurance? a) Interest rate b) Face amount c) Premium d) Cash value

b) Face amount

Another name for a substandard risk classification is a) Declined. b) Elevated. c) Rated. d) Controlled.

c) Rated.

Which Universal Life option has a gradually increasing cash value and a level death benefit? a) Juvenile life b) Term insurance c) Option B d) Option A

d) Option A

The Ownership provision entitles the policyowner to do all of the following EXCEPT a) Receive a policy loan. b) Assign the policy. c) Designate a beneficiary. d) Set premium rates.

d) Set premium rates.

The following is a type of ___ - Limited payment - Single premium - Straight life

whole life insurance

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) a) Variable Annuity. b) Flexible Annuity. c) Immediate Annuity. d) Equity Indexed Annuity.

d) Equity Indexed Annuity.

All of the following are TRUE statements regarding the accumulation at interest option EXCEPT a) The policyholder has the right to withdraw the accumulations at any time. b) The interest is not taxable since it remains inside the insurance policy. c) The annual dividend is retained by the company. d) The interest is credited at a rate specified by the policy.

b) The interest is not taxable since it remains inside the insurance policy.

All of the following are true of an annuity owner EXCEPT a) The owner is the party who may surrender the annuity. b) The owner must be the party to receive benefits. c) The owner pays the premiums on the annuity. d) The owner has the right to name the beneficiary.

b) The owner must be the party to receive benefits.

___ offer level premium based on the issue age, guaranteed, level death benefit, cash value that is scheduled to equal the face amount at the insured's age 100, and living benefits, which include policy loans.

Whole life policies

Which of the following is NOT one of the three types of term coverage based on what happens to the face amount during the policy term? a) Renewable b) Decreasing c) Level d) Increasing

a) Renewable

An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have? a) Universal life b) Adjustable life c) Term life d) Limited pay

a) Universal life

If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than a) With the policy. b) Upon issuance of the policy. c) Within 30 days after the first premium payment was collected. d) Prior to filling out an application for insurance.

a) With the policy.

All of the following are true of an ___ - The owner is the party who may surrender the annuity. - The owner pays the premiums on the annuity. - The owner has the right to name the beneficiary.

annuity owner

Which of the following best describes the aleatory nature of an insurance contract? a) Policies are submitted to the insurer on a take-it-or-leave-it basis b) Exchange of unequal values c) Only one of the parties being legally bound by the contract d) Ambiguities are interpreted in favor of the insured

b) Exchange of unequal values

All of the following statements about equity index annuities are correct EXCEPT a) They invest on a more aggressive basis aiming for higher returns. b) The annuitant receives a fixed amount of return. c) They have a guaranteed minimum interest rate. d) The interest rate is tied to an index such as the Standard & Poor's 500.

b) The annuitant receives a fixed amount of return.

When an insured terminates membership in the insured group, the insured can convert to a) Term life with proof of insurability. b) Whole life without proof of insurability. c) Whole life with proof of insurability. d) Term life without proof of insurability.

b) Whole life without proof of insurability.

An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement? a) $0 b) $100,000 c) $200,000 d) $100,000 plus the total of paid premiums

c) $200,000

If a person knowingly presents false information on an insurance application and intends to deceive the insurer for financial gain, it is considered to be a) Twisting. b) Adverse selection. c) Fraud. d) Coercion.

c) Fraud.

Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be? a) Installment refund b) Cash refund c) Installments for a fixed period d) Installments for a fixed amount

c) Installments for a fixed period

All of the following are the duties of the replacing producer where replacement is involved EXCEPT a) Submit to the replacing insurer a copy of all soliciting material. b) Submit to the replacing insurer a statement signed by the applicant as to whether or not there is existing life insurance. c) Send a letter to the policyowner of the right to receive information regarding the existing policy. d) Provide a copy of all solicitation material used for presentation to the applicant.

c) Send a letter to the policyowner of the right to receive information regarding the existing policy.

The policyowner of a Universal Life policy may skip paying the premium and the policy will not lapse as long as a) The policyowner cannot skip premiums without the policy lapsing. b) The next month's premium is sufficient to cover both the current premium amount and the skipped amount. c) The policy contains sufficient cash value to cover the cost of insurance. d) The previous premium payments were high enough to create an excess of premium.

c) The policy contains sufficient cash value to cover the cost of insurance.

What is the purpose of settlement options? a) They guarantee a return of excess premiums. b) They provide the beneficiary with the income he/she cannot outlive. c) They determine how death proceeds will be paid. d) They are guarantees built into the policy.

c) They determine how death proceeds will be paid.

The following is the ___ - The promise to pay covered losses - Something of value exchanged between parties - The premium amount paid at the time of application

consideration in a policy

Producers who wish to sell variable life insurance in this state must be registered with what entity? a) NAIC b) IRS c) SEC d) FINRA

d) FINRA

The automatic premium loan provision is activated at the end of the a) Free-look period b) Elimination period. c) Policy period. d) Grace period.

d) Grace period.

Which of the following provisions prevents the insurer from denying a claim due to statements on the application after a certain period of time? a) Payment of claims b) Waiver and estoppel c) Grace period d) Incontestability

d) Incontestability

Which of the following statements is correct regarding a whole life policy? (2) a) Cash values are not guaranteed. b) The policy premium is based on the attained age. c) The death benefit may increase or decrease during the policy period. d) The policyowner is entitled to policy loans.

d) The policyowner is entitled to policy loans.

All of the following statements about ___ - They invest on a more aggressive basis aiming for higher returns. - They have a guaranteed minimum interest rate. - The interest rate is tied to an index such as the Standard & Poor's 500.

equity index annuities are correct

As a ___, a producer is responsible for all of the following tasks - Obtain appropriate signatures on the application for insurance. - Help prevent adverse selection. - Solicit business that will fall within the insurer's underwriting guidelines.

field underwriter

All of the following are the duties of the ___ - Submit to the replacing insurer a copy of all soliciting material. - Submit to the replacing insurer a statement signed by the applicant as to whether or not there is existing life insurance. - Provide a copy of all solicitation material used for presentation to the applicant.

replacing producer where replacement is involved

The following is one of the three types of term coverage based on ___ - Decreasing - Level - Increasing

what happens to the face amount during the policy term

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained? a) 3 days b) 5 days c) 10 days d) 14 days

a) 3 days

A person was found guilty of an unfair trade practice of defamation. What is the maximum monetary penalty the person may have to pay? a) $10,000 b) $500 c) $1,000 d) $5,000

b) $500

The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years? a) 1 year b) 2 years c) 5 years d) 7 years

b) 2 years

All of the following statements are true regarding tax-qualified annuities EXCEPT a) Annuity earnings are tax deferred. b) They must be approved by the IRS. c) Withdrawals are taxed. d) Employer contributions are not tax deductible.

d) Employer contributions are not tax deductible.

Which type of life insurance policy allows the policyowner to pay more or less than the planned premium? a) Universal life b) Variable whole life c) Decreasing term d) Straight whole life

a) Universal life

All of the following are TRUE of the federal tax advantages of a qualified plan EXCEPT a) Employee and employer contributions are not counted as income to the employee for income tax purposes. b) At distribution, all amounts received by the employee are tax free. c) Employer contributions are tax deductible as ordinary business expense. d) Funds accumulate on a tax-deferred basis.

b) At distribution, all amounts received by the employee are tax free.

An insurance contract must contain all of the following to be considered legally binding EXCEPT a) Competent parties. b) Beneficiary's consent. c) Offer and acceptance. d) Consideration.

b) Beneficiary's consent.

All of the following are true regarding insurance policy loans EXCEPT a) The amount of the outstanding loan and interest will be deducted from the policy proceeds when the insured dies. b) The policy will terminate if the loan plus interest equals or exceeds the cash value of the policy. c) Policyowners can borrow up to the full amount of their whole life policy's cash value. d) Policy loans can be made on policies that do not accumulate cash value.

d) Policy loans can be made on policies that do not accumulate cash value.

Nonforfeiture values guarantee which of the following for the policyowner? a) That the dividends will be paid annually b) That the death benefit will be paid in a lump sum c) That the policy premiums will never increase d) That the cash value will not be lost

d) That the cash value will not be lost

The primary beneficiary of her husband's life policy found that no settlement option was stated in the policy on the date of her husband's death. Who will select the settlement option in this case? a) The benefit must be paid in a lump sum b) The insurance company c) The Court d) The beneficiary

d) The beneficiary

All of the following are true of key person insurance EXCEPT a) There is no limitation on the number of key employee plans in force at any one time. b) The employer is the owner, payor and beneficiary of the policy. c) The key employee is the insured. d) The plan is funded by permanent insurance only.

d) The plan is funded by permanent insurance only.

The policyowner of a Universal Life policy may skip paying the premium and the policy will not lapse as long as a) The previous premium payments were high enough to create an excess of premium. b) The policyowner cannot skip premiums without the policy lapsing. c) The next month's premium is sufficient to cover both the current premium amount and the skipped amount. d) The policy contains sufficient cash value to cover the cost of insurance.

d) The policy contains sufficient cash value to cover the cost of insurance.

Which of the following is NOT true regarding the accumulation period of an annuity? a) It is the period during which the annuity payments earn interest. b) It is the period over which the owner makes payments into an annuity. c) It is also known as the pay-in period. d) It would not occur in a deferred annuity.

d) It would not occur in a deferred annuity.

All of the following entities regulate variable life policies EXCEPT a) The Guaranty Association. b) Federal government. c) The SEC. d) The Insurance Department.

a) The Guaranty Association.

Insurers must complete claims investigations a) Promptly. b) Within 15 days. c) Within 30 days. d) Within 45 days.

a) Promptly.

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? a) 5 days b) 7 days c) 10 days d) 3 days

a) 5 days

An insured receives an annual life insurance dividend check. What term best describes this arrangement? a) Cash option b) Reduction of Premium c) Annual Dividend Provision d) Accumulation at Interest

a) Cash option

Under a pure life annuity, an income is payable by the company a) Only for the life of the annuitant. b) Until the principal and interest are exhausted. c) For a guaranteed period of time, whether or not the annuitant survives to the end of that period. d) For as long as either the annuitant or a named beneficiary is alive.

a) Only for the life of the annuitant.

___ are methods used to pay the death benefits to a beneficiary upon the insured's death, or to pay the endowment benefit if the insured lives to the endowment date.

Settlement options

Which of the following premium payment modes will incur the lowest overall payment? a) Annual b) Semi-annual c) Quarterly d) Monthly

a) Annual

Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium? a) Automatic premium loan b) Extended term c) Reinstatement d) Reduced paid-up option

a) Automatic premium loan

A producer is subject to criminal prosecution in another jurisdiction. Within what time frame must the producer report this fact to the Commissioner? a) Immediately after the hearing b) Within 30 days after the initial pre-trial hearing c) Within 15 days after the initial complaint d) Within 10 days after the final order

a) Immediately after the hearing

Which of the following is NOT true regarding the Life with Guaranteed Minimum annuity settlement option? a) It does not guarantee that the entire principal amount will be paid out. b) It is a life contingency option. c) The beneficiary receives the remainder of the principal amount upon the annuitant's death. d) Payments can be made in installments and as a single cash refund.

a) It does not guarantee that the entire principal amount will be paid out.

Which of the following statements about the reinstatement provision is true? a) It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated. b) It permits reinstatement within 10 years after a policy has lapsed. c) It provides for reinstatement of a policy regardless of the insured's health. d) It guarantees the reinstatement of a policy that has been surrendered for cash.

a) It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated.

In an annuity, the accumulated money is converted into a stream of income during which time period? a) Conversion period b) Annuitization period c) Payment period d) Amortization period

b) Annuitization period

Which of the following is a short-term annuity that limits the amounts paid to a specific fixed period or until a specific fixed amount is liquidated? a) Variable annuity b) Annuity certain c) Fixed annuity d) Refund life

b) Annuity certain

An unlicensed assistant works full time in an insurance agency. She may perform all of the following activities EXCEPT a) Call prospects and collect expiration date of their existing policies. b) Collect premium for in-force policies. c) Make appointments with clients and prospective clients to meet with an insurer's agent. d) Assist producers in completing applications for insurance.

b) Collect premium for in-force policies.

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as a) Binding contracts. b) Contracts of adhesion. c) Unilateral contracts. d) Aleatory contracts.

b) Contracts of adhesion.

All of the following are dividend options EXCEPT a) Paid-up additions. b) Fixed-period installments. c) Accumulated at interest d) Reduction of premium.

b) Fixed-period installments.

As a field underwriter, a producer is responsible for all of the following tasks EXCEPT a) Obtain appropriate signatures on the application for insurance. b) Issue the policy that is requested. c) Help prevent adverse selection. d) Solicit business that will fall within the insurer's underwriting guidelines.

b) Issue the policy that is requested.

As a field underwriter, a producer is responsible for all of the following tasks EXCEPT (2) a) Obtain appropriate signatures on the application for insurance. b) Issue the policy that is requested. c) Help prevent adverse selection. d) Solicit business that will fall within the insurer's underwriting guidelines.

b) Issue the policy that is requested.

Which of the following is NOT a type of whole life insurance? a) Limited payment b) Level term c) Single premium d) Straight life

b) Level term

Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary? a) Fixed-amount b) Life income with period certain c) Joint and survivor d) Single life

b) Life income with period certain

Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? a) Premiums are taxable to the employee. b) Premiums are not tax deductible as a business expense. c) Premiums are tax deductible by the key employee. d) Premiums are tax deductible as a business expense.

b) Premiums are not tax deductible as a business expense.

Which of the following is NOT the consideration in a policy? a) The promise to pay covered losses b) The application given to a prospective insured c) Something of value exchanged between parties d) The premium amount paid at the time of application

b) The application given to a prospective insured

The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change? a) The death benefit can be increased only by exchanging the existing policy for a new one. b) The death benefit can be increased by providing evidence of insurability. c) The death benefit cannot be increased. d) The death benefit can be increased only when the policy has developed a cash value.

b) The death benefit can be increased by providing evidence of insurability.

Which of the following is TRUE about nonforfeiture values? a) Policyowners do not have the authority to decide how to exercise nonforfeiture values. b) They are required by state law to be included in the policy. c) They are optional provisions. d) A table showing nonforfeiture values for the next 10 years must be included in the policy.

b) They are required by state law to be included in the policy.

Which of the following is true regarding taxation of accelerated benefits under a life insurance policy? a) There is a 10% penalty for early distribution of the death benefit. b) They are tax free to terminally ill insured. c) They are always taxable to chronically ill insured. d) They are always taxed.

b) They are tax free to terminally ill insured.

All of the following could own group life insurance EXCEPT a) A labor union. b) A debtor group. c) A group formed specifically to purchase insurance. d) An employer group offering covering for employees and dependents.

c) A group formed specifically to purchase insurance.

Which of the following is TRUE about a class designation? a) It is not allowed. b) It determines the succession of beneficiaries. c) Beneficiaries are not identified by name. d) Beneficiaries must be part of the insured's immediate family.

c) Beneficiaries are not identified by name.

A tax-sheltered annuity is a special tax-favored retirement plan available to a) Certain age groups only. b) Certain groups depending on factors such as race, gender, and age. c) Certain groups of employees only. d) Anyone.

c) Certain groups of employees only.

The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of contract? a) Personal b) Unilateral c) Conditional d) Adhesion

c) Conditional

A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called a) Living need rider. b) Payor rider. c) Cost of living rider. d) Accelerated benefit rider.

c) Cost of living rider.

Notwithstanding any other provision of law, each insurer admitted to transact the business of life insurance in this state must pay interest on the death benefits a) From the date of the claim. b) After 60 days only. c) From the date of death. d) After 30 days only.

c) From the date of death.

A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits? a) Flexible payment annuity b) Deferred interest annuity c) Immediate annuity d) Variable annuity

c) Immediate annuity

Which of the following best describes the MIB? a) It is a member organization that protects insured against insolvent insurers. b) It is a rating organization for health insurance. c) It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. d) It is a government agency that collects medical information on the insured from the insurance companies.

c) It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance.

When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy? a) It decreases over the term of the policy. b) It remains the same as the original policy, regardless of any differences in value. c) It is reduced to the amount of what the cash value would buy as a single premium. d) It is increased when extra premiums are paid.

c) It is reduced to the amount of what the cash value would buy as a single premium.

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this? a) Ordinary life policy b) Limited pay whole life c) Level term d) Term to specified age

c) Level term

Using a class designation for beneficiaries means a) Naming an estate as the beneficiary. b) Naming each beneficiary by his or her name. c) Naming beneficiaries as a group. d) Not naming beneficiaries.

c) Naming beneficiaries as a group.

The Federal Fair Credit Reporting Act a) Regulates telemarketing. b) Prevents money laundering. c) Regulates consumer reports. d) Protects customer privacy.

c) Regulates consumer reports.

Which type of life insurance policy generates immediate cash value? a) Decreasing Term b) Continuous Premium c) Single Premium d) Level Term

c) Single Premium

The advantage of qualified plans to employers is a) No lump-sum payments. b) Taxable contributions. c) Tax-deductible contributions. d) Tax-free earnings.

c) Tax-deductible contributions.

Under an employer-sponsored group plan, if the insurance on a person covered under the policy ceases because of termination of employment, which of the following is true? a) The insurer has the right to require evidence of insurability during the conversion period. b) The certificate owner has no further rights for coverage. c) The certificate owner is entitled to convert coverage to an individual policy without evidence of insurability. d) The group sponsor is entitled to policy's cash value.

c) The certificate owner is entitled to convert coverage to an individual policy without evidence of insurability.

What is the purpose of settlement options? (2) a) They guarantee a return of excess premiums. b) They provide the beneficiary with the income he/she cannot outlive. c) They determine how death proceeds will be paid. d) They are guarantees built into the policy.

c) They determine how death proceeds will be paid.

All of the following are requirements for life insurance illustrations EXCEPT a) They must identify nonguaranteed values. b) They must differentiate between guaranteed and projected amounts. c) They must be part of the contract. d) They may only be used as approved.

c) They must be part of the contract.

An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have? a) Term life b) Limited pay c) Universal life d) Adjustable life

c) Universal life

An insured decides to replace his life insurance policy with one offered by a new insurer. After receiving the policy, he is unsatisfied with the provisions and decides to return it. Within how many days must he return the policy to receive a full premium refund? a) 10 days b) 15 days c) 20 days d) 30 days

d) 30 days

When a policy is replaced, replacing insurers must maintain a replacement register regarding that policy for a) 8 years. b) 10 years. c) 3 years. d) 5 years.

d) 5 years.

Which of the following statements is correct regarding the replacement of an existing life insurance policy? a) Replacement rules apply to both individual and group policies. b) Records of replacement must be kept for 3 years. c) The new policy must have a 20-day free-look period. d) A replacement notice must be given out before taking the application.

d) A replacement notice must be given out before taking the application.

Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement? a) Term insurance only b) Permanent insurance only c) Universal life insurance only d) Any form of life insurance

d) Any form of life insurance

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be a) Certified. b) Qualified. c) Approved. d) Authorized.

d) Authorized.

Which of the following statements concerning buy-sell agreements is true? a) Premiums paid are deductible as a business expense. b) Benefits received are considered income taxable. c) Buy-sell agreements pay in the event of a medical emergency. d) Buy-sell agreements are normally funded with a life insurance policy.

d) Buy-sell agreements are normally funded with a life insurance policy.

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy? a) Dividend options b) Guaranteed renewable option c) Nonforfeiture options d) Guaranteed insurability option

d) Guaranteed insurability option

An insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit? a) When the insured dies, the primary and contingent beneficiaries share death benefits equally. b) With the primary beneficiary's written consent c) If the insured died from accidental means d) If the primary beneficiary predeceased the insured

d) If the primary beneficiary predeceased the insured

If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy? a) It is not considered to be taxable. b) It is taxable only if it exceeds the amounts paid for premiums by 50%. c) It is automatically taxable. d) It is only taxable if the cash value exceeds the amount paid for premiums.

d) It is only taxable if the cash value exceeds the amount paid for premiums.

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this? a) Term to specified age b) Ordinary life policy c) Limited pay whole life d) Level term

d) Level term

If a life insurance policy has an irrevocable beneficiary designation, a) The beneficiary cannot be changed for at least 2 years. b) The owner can always change the beneficiary at will. c) The beneficiary cannot be changed. d) The beneficiary can only be changed with written permission of the beneficiary.

d) The beneficiary can only be changed with written permission of the beneficiary.

Who has the right to assign incidents of ownership under a group life insurance policy? a) The group sponsor b) The beneficiary c) The insurer d) The individual insured

d) The individual insured

Which of the following statements is correct regarding a whole life policy? a) Cash values are not guaranteed. b) The policy premium is based on the attained age. c) The death benefit may increase or decrease during the policy period. d) The policyowner is entitled to policy loans.

d) The policyowner is entitled to policy loans.

All of the following are true regarding the guaranteed insurability rider EXCEPT a) The insured may purchase additional coverage at the attained age. b) The insured may purchase additional insurance up to the amount specified in the base policy. c) It allows the insured to purchase additional amounts of insurance without proving insurability only at specified dates or events. d) This rider is available to all insureds with no additional premium.

d) This rider is available to all insureds with no additional premium.

A producer is subject to criminal prosecution in another jurisdiction. Within what time frame must the producer report this fact to the Commissioner? a) Within 15 days after the initial complaint b) Within 10 days after the final order c) Immediately after the hearing d) Within 30 days after the initial pre-trial hearing

d) Within 30 days after the initial pre-trial hearing

All of the following are true regarding the ___ - The insured may purchase additional coverage at the attained age. - The insured may purchase additional insurance up to the amount specified in the base policy. - It allows the insured to purchase additional amounts of insurance without proving insurability only at specified dates or events.

guaranteed insurability rider

All of the following are true regarding ___ - The amount of the outstanding loan and interest will be deducted from the policy proceeds when the insured dies. - The policy will terminate if the loan plus interest equals or exceeds the cash value of the policy. - Policyowners can borrow up to the full amount of their whole life policy's cash value.

insurance policy loans

All of the following statements are true regarding ___ - Annuity earnings are tax deferred. - They must be approved by the IRS. - Withdrawals are taxed.

tax-qualified annuities

The producer does not issue the policy but delivers the policy. The producer has a duty to solicit business that will fall within the ___ and represent profitable business to the insurer (help prevent adverse selection).

underwriting guidelines