GUARANTEE EXAM REVIEW

Policies written on a third-party ownership basis are usually written to cover which of the following?

Policyowner's minor children or business associates

When a policy is surrendered fir its nonforfeiture value what is the automatic option ?

Extended term

according to life Insurance replacement regulations, which of the following would be an example of pollicy replacement?

A pollicy is reissued with a reduction in cash value,

What does the state Life and Health Insurance Guaranty Association guard against?

Insurer insolvency

insured decides to replace his life insurance policy with one return it. Within how many days must he return the policy in order to receive a full premium refund? offered by new insurer. After receiving the policy, he is unsatisfied with the provisions and decides to

30

An insurer decides to terminate the appointment of one of its producers and notifies the Commissioner 29 days after the fact. On the 9th day after the decision, th producer violates a regulation of the Insurance Code, and a policyowner wants to hold the insurer legally responsible. Which of the following is true?

The Insurer will be held fegally responsible

An Insurer malls an Insurance policy to a new policyowner. When the Insurer relinquishes control of the policy, the pollcy is considered

Dellvered.

IRA owner who is 57 years old wants to make a withdrawal from her traditional IRA. What penalty will be imposed?

10%

In credit life insurance, who is responsible for paying the policy premiums?

Borrower only

#60. ifa loan request is for payment of due premiums on the policy, how soon must the Insurer issue a loan?

Immediately

A stock insurer is defined as an insurer

Owned by its stockholders.

All of the following are advantages ofa qualified retirement plan EXCEPT

The income at retirement is tax free.

If the policy summary for a life insurance policy is not given when the application is taken, when must the policy summary be given to the policyowner?

When the policy is delivered

All of the following are consideration In an insurance policy EXCEPT

The cash value in the policy

A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new pollicy will

Continue to increase

What effect will the long-term care (LTC) rider have on the death benefit of a life insurance policy if LTC benefits were pald to the insured?

Reduce the death benefit

Cash Value guarantees in a whole life policy are called

Nonforfeiture values.

Which of the following would NOT trigger the payment of Accelerated Death Benefits?

Being permanently disabled