Guaranteed Exam

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

continue to increase

Which of the following would be exempt from the policy replacement regulations for insurers?

Credit life insurance

Which of the following is NOT a component of an insurance policy premium?

number of beneficiaries

All of the following are true about key-person insurance except...

the death benefit is taxable to the business

If a retirement plan or annuity is "qualified", this means

it satisfies IRS requirements for favorable tax treatment

An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapsed, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as...

twisting

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

The owner of the shop

When the owner of a participating whole life policy uses the dividend to provide more life insurance coverage, which of the following dividend options is being used?

paid-up options

Decreasing term insurance is often used to...

Cover a mortgage

An equity indexed annuity will grow based upon...

Performance of a recognized index

An adjustable life policy can assume the form of...

either term insurance or permanent insurance

According to the common disaster clause, if the insured and the primary beneficiary are killed in the same accident and it cannot be determined who dies first, which of the following will be assumed?

the primary beneficiary died before the insured

During policy solicitation, an insurer exaggerates the financial condition of one of its competitors, and makes it sound worse than it is. This is an example of an unfair trade practice of...

defamation

With Adjustable Life, the owner can change all of the following EXCEPT...

the insured

Producer licenses are valid from the initial licensing or re-installment period until...

the last day of the licensee's birth month plus one year.

If an agent follows the rules and terms of his agent contract, he is exercising his...

Express authority

The commissioner will send the insurer an appointment renewal notification for any licensee whose appointments are about to expire at least how many days before the renewal date?

60 days

Where are premiums from fixed annuities invested?

A general account

Within how many business days must an insurance producer reply to an inquiry of the commissioner relative to the business of insurance?

15

A married couple wants to include the entire family in their whole life policy under one rider. Which of the following riders will help them achieve that goal?

Family term

Which of the following would not trigger the payment of accelerated death benefits?

being permanently disabled

Answers to questions in an insurance application are called representation and, as such, they are...

believed to be true to the best of the applicants knowledge

What type of an interest rate is guaranteed in universal life policies?

Contract interest rate

How often are insurers required to renew agents' appointments?

Every 2 years

which of the following best describes the difference between joint life and joint and survivor and survivor annuity payment options?

In joint life option, the benefits stop after the first death.

Which of the following types of insurance is investment based, has a level fixed premium, and a non-guaranteed cash value?

variable whole life

A transaction where new life insurance is purchased, and as a part of the transaction, existing life insurance is lapsed or surrendered, is known as...

replacement

This state provides for a temporary license for all of the following EXCEPT...

A producer's retirement

If an insured dies, and it is discovered that the insurer misstated his/her age or gender,the life insurance company will...

adjust the benefit to what the premium would have purchased at the actual age or gender.

A whole life insurance policy must contain some cash value that may be borrowed by the policy owner after it's been in force for...

3 years

which of the following actions does NOT constitute false advertising?

stating that dividends are not guaranteed

When term insurance is added to the main policy to enhance the policy to provide added benefit coverage, it is called a...

term rider

Before an insurer may transact business in a specific state, they must apply for a license or certificate of authority from the state department of insurance and meet...

Solvency Requirements

Which of the following are characteristics of term life insurance?

temporary protection, renewability, no cash value

Life insurance disclosure rules would apply to which of the following types of coverage?

whole life

An annuity has accumulated the cash value of $70,000, of which $30,000 is from premium payments. The annuitant dies during during the accumulation phase. The beneficiary will receive...

$70,000

What type of insurer used a formal sharing agreement?

Reciprocal insurers

When comparing a joint life policy to two individual life policies of the same amount on the same insureds, which condition is true?

Joint life has a lower premium than the total of two individual policies.