Guarantee Exam (Missed Questions)

Which of the following is a requirement for prelicensing education for producers in this state?

Certain number of hours must be completed in a classroom setting.

How will life insurance proceeds that are paid as a lump sum received by the beneficiary?

Free of federal income taxation.

Where are premiums from fixed annuities invested?

General account

If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan?

Immediately

Replacement rules would apply when replacing all of the following policies EXCEPT

Nonconvertible, nonrenewable term that expires in 3 years.

Which of the following is consideration on the part of an insurer?

Paying a client.

Which of the following would be a violation of life policy illustration regulation in Illinois?

Providing a customer with an incomplete illustration.

Which of the following individuals would be a likely candidate to purchase a deferred annuity?

Someone who wants to grow retirement funds tax deferred.

In a life insurance application, all of the following signatures will be required EXCEPT

The home office underwriter.

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

The owner of a shop.

All of the following statements about indexed whole life insurance are correct EXCEPT

The policy face amount remains level throughout the life of the policy.

All of the following would be violations of the advertising and sales regulations for life insurance products EXCEPT

Using testimonials.

If a producer's license is violated for criminal activity, what is the maximum amount that can be charged for each offense?

$10,000

In a noncontributory group policy...

100% of eligible employees must participate.

Within what time period from the receipt must the insurer refund any premiums due to the insured?

15 days

When replacement is involved, the replacing insurer must send a notice to the existing insurance company that identifies the insured and policies within how many days?

3 business days.

Which of the following would be required to become licensed as an insurance producer?

A customer service representative who solicits no more than one policy a year.

Which of the following would NOT be allowed to offer insurance advice for a fee or commission in this state?

A director of an insurance company.

The requirements to hold a nonresident producer license include all of the following EXCEPT

Be a part-time resident of Illinois.

An insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest, so the agent guarantees higher dividends than he knows would be possible. Which term describes what the agent has done?

Misrepresentation