Examlife1
What is the maximum civil penalty that can be imposed for a single cause of license suspension, revocation or denial?
10000
What type of rider on a life policy would pay either a capital or principal sum for a qualified loss?
Accidental Death and Dismemberment Benefit Rider
Which of the following would be examples of illegal advertising?
All of the above
If an insured has suffered a qualified condition to qualify for Accelerated Benefits, who are the potential parties that must sign off on accepting accelerated benefits?
Answers A and C
B has a permanent policy that has endowed at age 85. Which of the following scenarios would make this possible?
B has a whole life policy and used a dividend to endow the policy sooner than age 100.
J has a policy that requires both he and his insurer must perform certain duties for the contract to stay in force. J has a(an):
Conditional contract
Which of the following features is a standard provision in life insurance policies?
Grace Period
The clause that defines and describes the scope of coverage and the limits of indemnification is known as the:
Insuring Agreement
All of the following are true regarding the Entire Contract provision of a policy EXCEPT:
It allows any oral statements made later on to contradict the contract.
All of the following are examples of a tax qualified plan EXCEPT:
Roth IRA
The extra premium for a Juvenile Payor Benefit Rider would be based off which party?
The applicant
Which of the following best explains the taxation of a Life Settlement?
The benefits received from a life settlement are not subject to taxation of any kind.
Combination/Variation Plans insure
Two or More lives under one contract
All of the following annuities have guaranteed principal EXCEPT:
Variable Annuity
An unfair act or practice would be charging higher premium based upon an applicant's:
religious beliefs
A producer is served with a Cease and Desist Order for unfair competition and he violates the Order. The statutory fine for this action is
$100 per day up to a maximum of $5,000.
At his license revocation hearing, producer Q is found to have violated fifteen separate causes of conduct each of each is sufficient cause for license revocation. What is the maximum civil penalty that could be imposed on Q for these actions?
100000
Once a producer license lapses, how long does the licensee have to seek reinstatement of the producer license?
12 months
The fee, every 2 years, for a business entity license is
150
What is the least civil penalty that would be assessed against an agency for a single act of defamation?
200
Which of the following most accurately describes the Illinois continuing education requirement?
24 total credit hours must be completed within each two year renewal period and of this 24 hours at least 3 must be a classroom ethics course.
The fine for willful violation of the Fair Credit Reporting Act is?
2500
The Guaranty Association limits up to _____ of life insurance death benefit.
300000
If an insured leaves a group they are allowed to convert their group coverage to an individual policy within ______ days.
31 days
A customer tried to use a fake id during an insurance transaction and the agent had to file a Suspicious Activity Report under law. One could assume a minimum of ______ was involved in the transaction.
5000
G has just applied for a life policy and paid the initial premium at application time. G should receive:
A Conditional Receipt
All of the following are examples of unfair practices, EXCEPT:
A company not paying a claim when liability to do so is reasonably clear.
Many years ago G bought a life policy. Since then G decided to replace that coverage with a policy that was purchased firsthand through the insurer and then delivered constructively. This is an example of:
A direct-response sale
How often must accounting posting occur with a Premium Fund Trust Account?
At least every 30 days
Which of the following criminal activities is most likely to lead to the termination of a producer's license?
Embezzlement while employed part-time as a bookkeeper.
S has a policy that has a minimum rate of interest but also has a capped maximum rate of return. S has a(an):
Equity Indexed Life Policy
K has a Level Term Policy. What is level about K's policy?
Face Amount
G purchased a life policy with a $100,000 death benefit. G struggled for a year with a Alzheimer's disease and recently died. Although the death benefit is $100,000, the beneficiary only received $80,000. Which of the following would be described what might have occurred?
G had a long term care benefit which deducted some of the face amount to pay nursing cost.
A provision that allows a policy owner to pay any unpaid premiums before a policy will lapse is known as:
Grace period
H owns his policy with a revocable beneficiary and wants to make a change to his policy. Who would have to sign off on this change?
H is the only party needed to sign for a change
Deferred or renewal commissions may be paid under which of the following conditions?
If the producer was licensed at the time of sale they are entitled to receive deferred compensation even if not licensed at the time renewal commissions are paid.
The clause in a contract that allows the insurer to terminate a policy after it is issued because of fraud is known as?
Incontestability
STOLI violates:
Insurable interest
All of the following are legal responsibilities of insurers when advertising life insurance EXCEPT:
Insurers must keep a file of every advertisement used in the last 3 years.
B wants to apply and own a life policy on his cousin T in the amount of $100,000 which is the same amount that B lent to T to help him start a business. The application:
Is a good example of required insurable interest existing at the inception of the policy.
When is the earliest point life coverage could possibly begin?
It depends on when the premium was paid
If a policy does not lapse at the end of the grace period because money is taken from the cash values to pay the premiums, what provision is in effect?
It is a separate policy
Last year D moved to Illinois from another state where D held a producer license but it was revoked due to violating a regulation in that state. What outcome is likely if D applies for a producer license in Illinois?
It is unlikely D will receive a producer license because any person who commits an act which would lead to a license revocation in Illinois is not qualified.
Low Rate Life Insurance Company has just received a notice regarding replacement form. Which of the following statements is CORRECT about what Low Rate Life must do next?
Legally notify the existing insurer before issuing a replacement policy.
Under Life Solicitation Rule, the definition that applies to a consumer that is most concerned about death benefit proceeds to be paid upon death is referred to as:
Life Insurance Net Payment Cost Index
Who would be the insured on a policy that contained the Payor Benefit rider?
Minor Child
K has a participating policy and has selected a dividend option that If K were to die this year it would pay more death benefit than the Face Value, but expire if K is alive at the end of the year. K selected:
One-Year Term Option
D has a policy from a participating insurer and receives a dividend. D would really like to increase her coverage without adding premium to the policy. The dividend option D should select is:
Paid-Up Addition
Which dividend option will lower total annual premium cost?
Premium application
All of the following statements pertaining to a Premium Fund Trust Account (PFTA) are accurate , EXCEPT:
Service fees are not allowed to be deposited into a PFTA.
Another name for a lump sum funded annuity is?
Single Premium
Which of the following is a short term strategy for funding an annuity?
Single Premium
Which of the following Whole Life policies would probably have the most expensive premium?
Straight Whole Life
Each of the following is an unfair claims practice by an insurance company, EXCEPT:
Supplying brochures to claimants that indicate a competitor is in a precarious financial position.
R owns a business and has her group insured by Insurer A. Insurer A sends an email to R regarding general group enrollment. Which of the following statements is true?
The email is excluded as advertising under law
Before P enlisted into the military, he shopped for a policy that would cover him no matter where he was in the world. P gets called up to active duty and died in battle. P's policy had the Results clause in the contract. Which of the of following is most likely to occur?
The insurer will not pay the death benefit.
A group health insurance policy master application must bear the name and signature of which of the following entities?
The licensee who solicited and wrote the application.
A policyholder purchased a Single Premium Whole Life policy in 2001 when they were 30 years old. In 2012, the policyholder takes a loan out. Which of the following is CORRECT regarding taxation of this loan?
The loan is taxable plus a 10% penalty
All of the following are qualifications that apply to a non-resident producer in Illinois, EXCEPT:
The non-resident must be licensed in their home state for a minimum of 2 years before Illinois will grant non-resident producer status.
An insured and primary beneficiary are driving in the same car on a highway. It was raining really hard that day and the insured lost control of the car and hit the barrier. When the paramedics showed up to the accident, the insured had died but they were able to put the primary beneficiary on life support. How will the insurer settle the proceeds?
The primary must clearly outlive the insured by a certain number of days to collect proceeds.
Once a producer has a felony conviction entered officially against him, what action is most likely to be taken pertaining to his producer license?
The producer will have his license revoked.
All of the following are allowed under Illustration Regulation EXCEPT:
To allow a producer to combine guaranteed and nonguaranteed benefits into a single column
Which of the following policies are regulated under FINRA compliance?
Variable Life
B has just be diagnosed with a terminal illness and has one year to live. Before B dies, he would like to have money on hand to take a trip. Considering B's circumstance, which of the following would allow B to sell a portion of his policy for money before he were to die?
Viatical Settlement
All of the following is correct about a Buy and Sell Agreement EXCEPT:
When an insured owner dies, the surviving spouse can sue the living owner to reclaim ownership.
Each of the following is true regarding STOLI EXCEPT:
a legal transaction
All of the following are REQUIRED elements of initial consideration EXCEPT:
adding a long term care rider
If an insurance company issues deceptive statements about its assets, this action is
an unfair trade practice
Promising a prospective insured that if they buy a policy that they will become an owner of the insurer is an example of
an unfair trade practice.
If a worker is fully insured through social security, what is the determining factor of when they can receive retirement benefits?
birth year
An example of a conditional contract is when:
both parties must perform certain duties
A convertible option on a term policy allows the insured to:
convert regardless of insurability
Under the Life Insurance Solicitation Rule, a Policy Summary need NOT include:
definition of Whole Life insurance
Joint Life insurance covers two or more insureds under one policy and pays death upon:
first to die
In a Group Life policy, which of the following may have to pay premiums?
group sponsor and group members
The sale, solicitation or negotiation of legal expense insurance requires
requires the appropriate limited lines producer license.
A Temporary License (180 days) allows the holder to engage in all of the following activities, EXCEPT:
sell a new policy to existing client
The party who is responsible for assuring that a producer surety bond is effect as required and for the correct amount is
the producer
Which of the following statements about producer license termination is NOT accurate?
A person who has their producer license terminated would still be able to work for an insurance company in a non-sales position..
An owner wants to change their revocable beneficiary. Which of the following must take place?
All of the above
Which type of annuity payments are allowed during the pay-in period?
All of the above
Which of the following is an example of illegal advertisement?
An agent telling a client that the number of people who can get coverage is limited and they better act now for benefits.
Which of the following gifts is not considered a rebate if offered in the purchase of an insurance policy?
An insurance company offering a child passenger restraint system.
Another name for making an amendment to a policy is a(an):
Endorsement
The government entity that enforces compliance with the USA Patriot Act/Anti-Money Laundering is:
FinCEN
Variable Whole Life requires a:
Fixed and Level Premium
Which of the following riders would be beneficial for insured who just graduated from college and is concerned that their health may change in the next ten to fifteen years and affect their ability to buy future life insurance?
Guaranteed Insurability Option
A Survivorship life policy insures two or more lives at the same time and pays death benefit:
When the last insured dies
A producer uses sign language to explain an insurance policy to a prospect who is hearing impaired and the producer is purposely communicating false information to make a sale. Has the producer broken any insurance rules or regulations?
Yes, the producer is guilty of misrepresentation.
All of the following are valid examples of a life settlement EXCEPT:
an insured has just been diagnosed with a terminal illness and wants to sell the policy to help pay medical bills
If a Cease and Desist order is issued the Director must serve notice to the recipient of the order of a hearing to be held at a fixed time and place which
may not be less than 20 or more than 30 days after the notice of hearing is served to the recipient