Guarantee Exam 10.0
The two types of assignments are
Absolute and collateral.
Which of the following is another term for an authorized insurer?
Admitted
Which of the following defines a peril?
Cause of loss
Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be
Adjusted to the insured's age at the time of renewal.
Which policy component decreases in decreasing term insurance?
Face amount
Nonforfeiture values guarantee which of the following for the policyowner?
That the cash value will not be lost
During each licensing period, every licensee subject to Minnesota's continuing education requirement must complete a minimum of
24 credit hours.
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?
30 days
For how long is an insurance company allowed to defer policy loan requests?
6 months
If an insurer meets all the state's requirements, their Certificate of Authority should arrive within how many days of applying?
60
Once an individual is licensed as an insurance producer for life or accident and health insurance, how many hours of training must he or she initially complete to sell long-term care insurance?
8
Which of the following is NOT true regarding a Certificate of Authority?
It is issued to group insurance participants.
Which of the following is true regarding the master policy?
It is issued to the sponsor of the group.
Which of the following statements about the reinstatement provision is true?
It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated.
In Minnesota, what are the continuing education (CE) requirements for nonresident producers?
Nonresident producers only need to fulfill the CE requirements in their home state.
Which of the following is another term for the accumulation period of an annuity?
Pay-in period
All of the following would be considered rebating EXCEPT
An agent misrepresents policy benefits to convince a policyowner to replace policies.
The death protection component of Universal Life Insurance is always
Annually Renewable Term
Which policy provision outlines the specific responsibilities of the insured in the event of a loss?
Duties of the Insured
If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a
Guaranteed insurability rider.
At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called
Guaranteed insurability.
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?
If the primary beneficiary predeceased the insured
Which of the following statements is true regarding group health insurance underwriting?
Medical insurance underwriting is typically not necessary for large groups but may be required for small groups.
All of the following are true regarding insurance policy loans EXCEPT
Policy loans can be made on policies that do not accumulate cash value.
Which nonforfeiture option provides coverage for the longest period of time?
Reduced paid-up
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
The beneficiary
Which of the following is TRUE regarding the insurance amount in a credit life policy?
The creditor can only insure the debtor for the amount owed.
Which of the following is INCORRECT concerning a noncontributory group plan?
The employees receive individual policies.
Which is generally true regarding insureds who have been classified as preferred risks?
Their premiums are lower.
How are contributions to a tax-sheltered annuity treated with regards to taxation?
They are not included as income for the employee, but are taxable upon distribution.
For what reason may a life insurance producer backdate a life insurance policy?
To avoid an increase in premium rate for the insured
Which of the following life insurance policies allows a policyowner to take out a loan from the policy's cash value?
Variable universal life
Insurance is the transfer of
risk