Hawaii life practice questions

If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT

Erase the incorrect answer and record the correct answer.

All of the following are personal uses of life insurance EXCEPT

Estate creation

agent selling variable annuities must be registered with

FINRA

A witness in an insurance case has been served a subpoena. If the person refuses to testify, what is the Commissioner's next step?

File a report in the circuit court

Which is TRUE about the cash surrender nonforfeiture option?

Funds exceeding the premium paid are taxable as ordinary income.

An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?

Illegal under any circumstances

Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?

Installments for a fixed period

When a life insurance policy was issued, the policyowner designated a primary and a contingent beneficiary. Several years later, both the insured and the primary beneficiary died in the same car accident, and it was impossible to determine who died first. Which of the following would receive the death benefit?

Insured's contingent beneficiary

Which of the following best describes a pure life annuity settlement option?

Pure life provides payments for as long as the annuitant is alive.

Representations are written or oral statements made by the applicant that are

Considered true to the best of the applicant's knowledge

The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called

Credit life

Which of the following is TRUE regarding the insurance amount in a credit life policy?

Creditor can only insure the debtor for the amount owed.

Which of the following is NOT allowed in credit life insurance?

Creditor requiring that a debtor buys insurance from a certain insurer

When the Commissioner suspects that anyone has engaged in deceptive acts, the Commissioner will give that person a statement of charges and notice of hearing to be held within

15 days

The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive?

$100,000

After a credit life insurance loan is completed, within how many days must the policy be delivered?

30

How many days does the producer have to return premiums to the entitled party?

30 days

If a policyowner has a participating policy, when is the insurer required to start payment of dividends?

3rd year policy

Which of the following would be considered an unfair claims settlement practice?

A claims adjuster advises the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered

Which of the following persons is required to hold a producer license?

A person who negotiates insurance contracts

In life insurance policy replacement, who is responsible for notifying the existing insurer about the replacement?

Replacing insurer

All of the following are considered unfair trade practices in the business of insurance EXCEPT

Sharing commissions

Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?

Size of each installment

Which of the following is the best reason to purchase life insurance rather than annuities?

To create an estate

All the following statements are false regarding licensing EXCEPT

Applicants must pass a state licensing exam

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

Cash option

When a policyowner designates a group of individuals as the beneficiary of a life insurance death benefit without specifice.ly naming the individuals, this is called

Class designation

What is another name for interest-sensitive whole life insurance?

Current assumption life

Which of the following does NOT apply to variable contracts?

Insurers do not have to provide any financial information or history of the company

Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?

Insuring clause

Which of the following is TRUE of a qualified plan?

It has a tax benefit for both employer and employee.

Which of the following is true about the premium on the children's rider in a life

It remains the same no matter how many kids are added to the policy

Under a pure life annuity, an income is payable by the company

Only for the life of the annuitant

An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called

Paid-up additions

All fees, charges, commissions and other considerations charged for insurance must be stated in the

Premium

Which of the following will be included in a policy summary?

Premium amounts and surrender values

An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this?

Reinstatement provision

Which of the following statements is correct about a standard risk classification in the same age group and with similar lifestyles?

Standard risk is representative of the majority of people.

Nonforfeiture values guarantee which of the following for the policyowner?

That the cash value will not be lost

Which of the following information will be stated in the consideration clause of a life insurance policy?

The amount of premium payment

Which of the following is NOT the consideration in a policy?

The application given to a prospective insured

Which of the following is INCORRECT concerning a noncontributory group plan?

The employees receive individual policies

Who is the owner and who is the beneficiary on a Key Person Life Insurance policy?

The employer is the owner and beneficiary

All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT

The policy is owned by the company

Which of the following statements is correct regarding a whole life policy?

The policyowner is entitled to policy loans

Which of the following best defines the "owner" as it pertains to life settlement contracts?

The policyowner of the life insurance policy

How must a replacing producer respond to an applicant wishing to replace existing life insurance?

The producer must provide the applicant with a Notice Regarding Replacement

Which of the following is TRUE about nonforfeiture values?

They are required by state law to be included in the policy.

All of the following information about a customer must be used in determining annuity suitability EXCEPT

beneficiary's age

Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as

coercion

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

An unfair trade practice

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

As of the application date

When must insurable interest exist in a life insurance policy?

At the time of application

Which of the following statements concerning buy-sell agreements is true?

Buy-sell agreements are normally funded with a life insurance policy

Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process?

Buyer's Guide

What is the name of a clause that is included in a policy that limits or eliminates the death benefit if the insured dies as a result of war or while serving in the military?

Military service or war

Which Universal Life option has a gradually increasing cash value and a level death benefit?

Option A

Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?

Option B

The Commissioner will deny a license renewal to a producer who plans to exclusively sell

To family members

An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?

Universal Life

Combining collected premiums and producer's own funds in one account is called

commingling

The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of contract?

conditional

The type of policy that can be changed from one that does not accumulate cash value to the one that does is a

convertible term policy

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?

false advertising

An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming?

foreign

An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?

illegal

Stranger-originated life insurance policies are in direct opposition to the principle of

insurable interest

In a life settlement contract, whom does the life settlement broker represent?

owner

Children's riders attached to whole life policies are usually issued as what type of insurance?

term

Which of the following is a characteristic of a Reciprocal Insurance Exchange?

the chief administrator of the insurer is called an "attorney-in-fact"