Guaranteed exam questions missed

What is the maximum civil penalty per violation of the regulations of the insurance code that define acts that are subject to fines or license suspension or revocation

$5,000

Once an insurer receives a claim, within how many days must the insurer provide claim forms to the insured?

10 working days

What is the tax penalty for withdrawing money from an annuity prior to age 59 1/2

10%

An agent received some inaccurate information and as a result he publicly misstated the financial condition of another entity 12 times over a period of 3 months if this fact is revealed the agent my face a fine up to

10,000 dollars

An insurer must notify the consumer in writing that an investigative consumer report has been requested, with in how many days of the initial request

3 days

A distribution from an employer sponsored retirement plan or from an IRA is eligible for a tax free rollover if it is reinvested in an it's within

60 days

An individual acted as an exclusive general agent even though she was not licensed to do so. Since this offense occurred over a period of 60 days what is the maximum penalty she faces

60,000 and a third degree misdemeanor

According to the life insurance replacement regulations, which of the following would be an example of policy replacement?

A policy is reissued with a reduction in cash value

Under the conditions of payment form an insurer may require all of the following conditions to be met in order to pay accelerated death benefits except

A probationary period of no more than 1 year

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

Being permanently disabled

All of the following are true of a non qualified deferred compensation plan except

Contributions are tax deductible

A new homebuyer wants to purchase a life insurance policy that would protect his family against losing the home, should he die before the mortgage was paid. The most inexpensive type of policy that would accomplish this need would be

Decreasing term

An insured purchases a non participating whole life policy this policy includes all of the following except

Dividends

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

Home office underwriter

Under which of the following conditions would life insurance proceeds be taxable by the federal government

If there is a transfer for value

Which of the following statements is true regarding advertising that the insurance guaranty association would ensure payment of benefits in the event of insurer insolvency

It is an unfair trade practice to mention the Association in advertisements.

Which of the following best describes pure life annuity

It provides the highest monthly benefits

Your client wants to provide a retirement income for his elderly parents incase something happens to him . He wants to make sure both beneficiaries are guaranteed an income for life . Which settlement option should this policyowner select

Joint and survivor

The human life value approach to determining life insurance needs is based upon which of the following ideas

Loss of breadwinner's income

Guaranteeing future dividends is considered to be an unfair or deceptive act known as

Misrepresentation

cash value guarantees in a whole life policy are called

Nonforfeiture values

A married couple purchase a life insurance policy on their newborn baby they are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability. Which policy rider should their agent recommend

Payor benefit

An Equity Indexed Annuity will grow based upon

Performance of a recognized index

If a life insurance company uses hiv testing as a part of its underwriting when must an applicant e notified of the procedure

Prior to performance of the test

What type of insurer uses a formal sharing agreement

Reciprocal insurers

An individual purchases a life insurance policy and lists his parents as the beneficiaries. He is able to change the beneficiaries at any time. What type of beneficiary designation does the policy have

Revocable

In contrasting stock insurers with mutual insurers which statement is true

Stock insurers are owned by the shareholders and issue nonparticipating policies

In a deferred annuity the difference between the accumulation value and the surrender value is the

Surrender charge

All of the following are true about key person insurance EXCEPT

The death benefit is taxable to the business

All of the following are true about group life insurance except

The employer is the beneficiary

What happens to the face amount of a whole life policy if the insured reaches the age of 100

The face amount is paid to the insured

Life insurance creates an immediate estate. Which of the following best explains this statement

The face value of the policy is payable to the beneficiary upon the death of the insured

All of the following are true of group life insurance except

The insureds each own their own contract

Who is the annuity owner?

The person who purchases the annuity

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

If an applicant submits the initial premium with an application which action constitutes acceptance

The underwriters approve the application

An insured's flexible premium is invested into a separate account. What type of insurance product did he purchase?

Variable Universal Life

When an insured terminates membership in the insured group the insured can convert to

Whole life without proof of insurability

J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose?

a fixed amount

In life insurance which of the following is not required to have an insurable interest in the insured

beneficiary

Who does the spendthrift clause in a life insurance policy protect?

beneficiary

The policy owner has an option to pledge the life insurance policy as collateral for a bank loan this is called

collateral assignment

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

contract interest rate

All of the following are true regarding the federal fair credit reporting act except

reports may be sent to anyone who requests one

An applicant for a disability insurance policy has a heart condition of which they are unaware and therefore they answer no to the question pertaining to heart problems on their application. Their answer is considered to be a

representation

Which type of insurance policies provides pure life insurance protection without a savings element

term

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

twisting