Exam

Which of the following best defines the unfair trade practice of rebating?

Offering an inducement of something of value not specified in the policy

How long does a resident producer have to notify the Director of a change of residence or business addresses?

30 days

Which of the following is true regarding pure life annuity settlement option?

It provides the highest monthly benefit.

All of the following are true of the Survivorship Life policy EXCEPT

The premium is based on the age of each insured.

When an insured terminates membership in the insured group, the insured can convert to

Whole life without proof of insurability.

In order for a business partner to be eligible for a Keogh plan, he/she must work full-time and own at least how much of the business?

10%

Making any statement that an insurer's policies are guaranteed by the existence of the Life and Health Guaranty Association is

An unfair trade practice.

What type of an interest rate is guaranteed in universal life policies?

Contract interest rate

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

Extended term

All of the following forms of policies are exempt from the standard policy regulations for insurers EXCEPT

Group life policies where there is direct solicitation

An insurance agent who represents multiple companies on a nonexclusive basis and earns commissions on personal sales is working in what kind of marketing system?

Independent Agency System

Which of the following best describes pure life annuity?

It provides the highest monthly benefits.

In the event an annuitant dies during the accumulation period, and there is a beneficiary named in the annuity, annuity benefits would be paid to the

Named beneficiary

If the annuitant dies before the annuity start date, which of the following is true?

The interest is taxable,

existing Michael business. is an How insurance long is producer she able who to has carry a very on business successful as usual business. without passing Unexpectedly an Michael insurance dies. examination? His wife Andrea realizes the need for her to continue to service his

180 days

Which of the following is NOT a component of an insurance policy premium?

Number of beneficiaries

Which of the following would NOT trigger the payment of Accelerated Death Benefits?

Being permanently disabled

What does the application of contract of adhesion mean?

Since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the insured

Which of the following would NOT be eligible for coverage under key person?

The owner of a shop

Which of the following is true regarding a joint life annuity?

c) The payments stop at the first death,

Ina deferred annuity, the difference between the accumulation value and the surrender value is the

Surrender charge.

Variable life insurance is regulated by all of the following entities EXCEPT

The U.S. Department of Treasury

In order to reinstate a life insurance policy the insured must do all of the following EXCEPT

Pay next year's premium in advance.

distribution A from an employer-sponsored retirement plan from an IRA is eligible for a tax-free rollover if it is reinvested in an IRA within

60 days.

Which of the following statements is true regarding thrift plans?

The employer contributes a certain amount for each dollar contributed by the employee.

All of the following are true of group life insurance EXCEPT

The insureds each own their own contract.

Upon the surrender of a life insurance policy, any cash value accumulated in excess of the premium payments is

Taxed as ordinary income.