Insurance

What is the maximum civil penalty per violation if an unauthorized entity violates the Commissioner's cease and desist order?

$25,000

An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?

$50,000

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

Cash option

All of the following are considered to be misuses of fiduciary funds EXCEPT

Collecting interest on customer balances held in a producer's trust account

Insurers must screen all marketing plans to assure that an advertisement does NOT use as the name or title of any kind of an annuity contract any phrase that

Does not include the word "annuity" unless accompanied by other clear language indicating it is an annuity.

An agent selling variable annuities must be registered with

FINRA

Variable Life insurance is based on what kind of premium?

Level fixed

If a settlement option is not chosen by the beneficiary or policyowner, which option will be used?

Lump sum

Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?

Paid-up option

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Payor Benefit

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

Premium amounts and surrender values

All of the following provisions must be included in an insurer's anti-fraud plan EXCEPT

Suspension of producer's licensure.

A friend helped an insurance producer sell an insurance policy. The producer can share the commission with the friend if

The friend is licensed in the same line of insurance

What is the purpose of the buyer's guide?

To allow the consumer to compare the costs of different policies

The paid-up addition option uses the dividend

To purchase a smaller amount of the same type of insurance as the original policy.

In a survivorship life policy, when does the insurer pay the death benefit?

Upon the last death

A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. This is an example of

Coercion.

An insurance producer just sold an insurance policy to his sister. What kind of business is this?

Controlled

An insurance producer is prohibited from charging separate fees for any of the following services EXCEPT

Financial planning.

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?

Guaranteed insurability option

Which of the following is a producer's fiduciary duty?

Handling premium

Which of the following best details the underwriting process for life insurance?

Selection, classification, and rating of risks

Group life insurance policies delivered in Colorado must contain all of the following provisions EXCEPT

Statements of the applicant are considered warranties.

Which of the following terms will be permissible in describing a life insurance policy in company advertisements?

Variable plan

As part of the continuing education (CE) requirement, what is the minimum number of hours of CE specific to annuities that must be completed for each license renewal period?

4

A producer is required to remit premiums from a trust account to the insurer within how many days of receipt?

45 days

The term "illustration" in a life insurance policy refers to

A presentation of nonguaranteed elements of a policy.

When an insurance producer receives an application for an annuity contract, the producer must give the applicant a copy of which of the following documents?

All disclosure documents and the Buyer's Guide

Which of the following would be considered a nonmedical insurance application?

An application on which the medical information is completed by the applicant and the agent only

All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?

Lower

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

Term

Producers will be deemed to be using their license primarily to write controlled business if, during any 12-month period

The total premiums on controlled business exceed the total premiums on all other business written.

Which of the following is TRUE for both equity indexed annuities and fixed annuities?

They have a guaranteed minimum interest rate.

Which of the following is NOT a penalty for violating provisions of the Insurance Code?

imprisonment

A producer's appointment with an insurer has been terminated. Under what circumstances can the producer sue the insurer or the Commissioner for information provided during producer investigation?

If the termination was a result of willful and malicious behavior

Which of the following describes the tax advantage of a qualified retirement plan?

The earnings in the plan accumulate tax deferred.

All of the following are requirements for life insurance illustrations EXCEPT

They must be part of the contract.

If the Commissioner believes that an unauthorized person is engaging in the business of insurance in violation of the provisions of the Insurance Code, creating an immediate danger to the public safety, the Commissioner may

Issue an emergency cease and desist order