FEG Study Guide
A Straight Life policy has what type of premium
A level annual premium for the life of the insured
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act
$2,500
As a direct rollover, how is the money transferred from one plan to the new one?
From trustee to trustee
Events or conditions that increase the chances of an insured loss occurring are referred to as
Hazards
Who does the IIPRC (Interstate Insurance Product Regulation Compact) serve?
Insurers
Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?
Universal Life
What is the latest point that a Buyer's Guide can be issued?
When the applicant turns in the application
Within how many days of the original hearing and final issuance of an order (regarding an order issued by the Commissioner) may an aggrieved person request a re-hearing
20
When the Commissioner revokes an intermediary's license for any reason other than nonpayment of fees, the intermediary may not apply for a new license for how many years?
5 years
Which of the following would be deducted from the death benefit paid to the beneficiary, if a partial accelerated death benefit had been paid while the insured was still alive?
Amount paid with the accelerated benefit, plus the earnings lost by the insurance company in interest income from the accelerated benefit
Because an agent is using stationary with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. What type of agent authority does this describe?
Apparent
Which of the following is INCORRECT regarding a $100,000 20 year level term policy
At the end of 20 years, the policy's cash value will equal $100,000
Which of the following is a feature of variable annuity
Benefit payment amounts are not guaranteed
In WI, producers are permitted to share or split commissions, providing that
Both are properly licensed for the same line of insurance
Each insurer must report or list all appointments and all terminations of appointments to what authority
Commissioner
Which of the following will not be an appropriate use of deferred annuity?
Creating an estate
When the policyowner specifies a dollar amount in which stallments are to be paid, he/she has chosen which settlement option?
Fixed amount
Which component increases in the increasing term insurance?
Death benefit
A young father would like a life insurance policy to provide coverage for all five family members at the lowest cost. Which type of policy would he most likely buy?
Family (protection) plan
A person that markets insurance but does not include an insurer is called a
Firm
Which of the following is not a limited line of insurance
Life Insurance
Which of the following would be the best option that would help the surviving spouse of the insured to put their child through daycare after the insured's death
Life insurance proceeds
Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report?
Must be informed by the source of the report
Using a class designation for the beneficiaries means
Naming beneficiaries as a group
All of the following are examples of risk retention EXCEPT
Premiums
During the accumulation period in a nonqualified annuity, what are the tax consequences of a withdrawal?
Taxable interest will be withdrawn first and the 10% penalty fee will be imposed if under 59 1/2
A policyowner neglects to pay his life insurance premium on time. He dies ten days later. Which of the following is true?
The death benefit will be paid, minus the premium
Which of the following describes the tax advantage of a qualified retirement plan?
The earnings in the plan accumulate tax deferred
Annuities differ from life insurance in all of the following ways EXCEPT
they are purchased with premiums
Which of the following would least likely be considered a legitimate need that would be paid by insurance?
vacation travel expense