FML
When a producer ceases to maintain residency in this state, within how many days must the producer return the license to the Commissioner?
10 days
What is the purpose of establishing the target premium for a universal life policy?
To keep the policy in force
Which statement is NOT true regarding Straight Life policy? - the face value of the policy is paid to the insured at age 100 - it usually develops cash value by the end of the third policy year - it has the lowest annual premium of the three types of Whole Life Policies - its premium steadily decreases over time, in repossess to its growing cash value
Its premium steadily decreases over time, in response to its growing cash value.
What employees of an insurance company are responsible for the final risk selection?
Underwriters
What is a material misrepresentation?
A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company
If a producer allows his license to lapse, what is the maximum time period during which the producer can reinstate the license without having to retake the examination ?
A year
All of the following statements are correct regarding credit life insurance EXCEPT - benefits are paid to the borrower's beneficiary - the amount of insurance permissible is limited per borrower - premiums are usually paid by the borrower - benefits are paid to the creditor
Benefits are paid to the borrower's beneficiary
The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the
one-year term option
Which of the following statements about a suicide clause in a life insurance policy is true ? - suicide is covered as long as the policy is in force - suicide is excluded as long as the policy is in force - suicide is excluded for a specific number of years and covered thereafter - suicide is covered for a specific number of years and excluded thereafter
Suicide is excluded for a specific number of years and covered thereafter
Which component increases in the increasing term insurance?
death benefit
Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce...
Without receiving written consent from an insurance regulatory authority
If an insured continually uses the automatic premium loan option to pay the policy premium,...
The policy will terminate when the cash value is reduced to nothing
Why is an equity index annuity consider to be a fixed annuity?
It has a guaranteed minimum interest rate
Which of the following statements about the reinstatement provision is true? - it permits reinstatement within 10 years after a policy has lapsed - it provides for reinstatement of a policy regardless of the insured's health - it guarantees the reinstatement of a policy that has been surrendered for cash - it requires the policyowner to pay all the overdue premiums with interest before the policy is reinstated
It requires the policyowner to pay all the overdue premiums with interest before the policy is reinstated
Which of the following premium payment modes will incur the lowest overall payment? - annual - semi-annual - quarterly - monthly
Annual
The Commissioner has just issued an order regarding a recent hearing. How many days does the producer who was subject to the hearing to appeal to the Commissioner's action?
30 days
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?
The beneficiary
A man purchased a $90,000 annuity with a single premium, and began receiving payments 2 months after that. What type of annuity is it?
immediate
Which of the following would NOT constitute doing the business of insurance in this state? - investigating claims - holding an insurance license - delivering insurance contracts - examining insurer records
Examining insurer records
During replacement of life insurance, a replacing insurer must do which of the following? - send a copy of the Notice Regarding Replacement to the Department of Insurance - obtain a list of all life insurance policies that will be replaced - guarantee a replacement for each existing policy - designate a new producer for a replaced policy
Obtain a list of all life insurance policies that will be replaced
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?
$200,000
An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? - consumer privacy act - conditional receipt - disclosure rule - fair credit reporting act
Fair credit reporting act
When would a 20-pay whole life policy endow?
When the insured reaches age 100