Insurance agent exam

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What kind of arrangement gives the policyowner the right to change the beneficiary

Revocable designation

What does a 401(k) plan generally Provide its participant

Salary-defferal distributions

Which is a role of the replacing insurer during life insurance replacement transaction

Send notice of the proposed replacement transaction to the existing insurer

Assets that back the non-guaranteed values of variable life insurance products are held in which account

Separate account set up by the insurer

All of these statements concerning group credit life insurance are false except

The face amount is based on the outstanding loan balance

Which of the following is true regarding a person regarding a person receiving a waiver of premium benefit

The insured must be disable for a period of time

The Virginia life, accident, and sickness insurance Guaranty Association protects an insured in the event of

The insurer's insolvency

Which of the following statements about the installment for a fixed period settlement option in life insurance policies is not true

The periodic payment amount is determined by the beneficiary's age

Under an adjustable life insurance policy, which of the following may not be changed without further underwriting

The person insured

Taxable income may be the result from all of these modified endowment contract (MEC) transactions expect for

The policy is surrendered for less than what was paid into it

A "premature" distribution from a modified endowment contract (MEC) incurs a penalty tax of

10%

After passing the state exam, an applicant is required to obtain the appropriate license within ___ calendar day

183

If an agent holds 2 license types, the continuing education requirement is ___ credit by December 31 in even numbered years

24

Insurance transaction MUST be maintained by an agent for at least ___ calendar years

3

Upon meeting company requirements, a lapsed life insurance policy may be reinstated for up to __ year(s)

3

An insurance company or agent must respond within ___ days to an insured's request to access personal information collected on him/her by the insurer

30

If an insurance agency has moved its office to a new location, the bureau of insurance MUST be notified within ____calendar days of the move

30

Greg had recently been terminated from his job that covered him for group life insurance. How long does he have to convert his coverage to an individual policy

31 days

An agent must maintain customers records for ___ year(s) following the completion date of the insurance transaction

5

One becomes eligible for social security disability benefits after having being disabled for

5 months

Which of the following combinations best describes a universal life insurance policy

A flexible premium deposit fund and monthly renewable term insurance policy

Which of the co- annuitants listed below would receive the largest monthly benefit payments in a joint and 100% survivor annuity

Ages 71 and 73

Which of these is an example of twisting

An agent misrepresents a policy to induce a policyowner to surrender an existing policy

The surrender charge on many deferred annuity contracts are waived when the

Annuitant dies or become disabled

Traditional individual retirement annuity (IRA) distributions must start by

April 1st of the year following the year the participant attains age 70 ½

Which statement regarding the cash value of a whole life insurance policy is correct

Available to the policyowner when policy has been surrendered

Which of these is NOT considered to be a cost connected with the individuals death

Business expenses

Which of the these is not a true statement of the war exclusion

Civil insurrections apply

A prospective client was intimidated by an agent to purchase an insurance contract. The agent could be found guilty of

Coercion

An agent who attempts to intimidate is engaging in

Coercion

An agent MUST notify the Bureau of insurance for

Conducting business under an assumed name

Which report contains information regarding an individual's general reputation and credit standing

Consumer report

The courts will normally interpret a policy in favor of the insured when the meaning of the policy is not clear. This is because an insurance policy is a(n)

Contract of adhesion

Which statement about group life insurance is INCORRECT

Each participant requires evidence of insurability

A group life insurance policy can be converted to an individual whole life policy under which circumstance

Employment termination

Scott has life insurance policy In which the dividends are left with the insurance company.this particular policy may be paid up when the cash value plus accumulated dividends

Equal the net single premium for the same face amount at the insured's attained age

Which life insurance policy option allows the policy owner to have coverage equal to the net death benefit of the lapsed policy

Extended term Nonforfeiture option

Which of the following is considered an unfair claims settlement practice

Failure to investigate or pay legitimate claims

When an individual is planning to protect his family with life insurance, one method of doing so is called need analysis. What exactly does need analysis involve

Identifies the needs of an individual and the individual's dependents

A single premium deferred annuity sometimes contains a bailout feature. Which statement regarding this feature is correct

If the interest rate falls below a specific level, the surrender charge is waived

Premium collected by an insurance agent must be maintained in a fiduciary capacity. At what point MUST these premiums be remitted to the insurer

In the ordinary course of business

Defamation can be best defined as

Making a statement that is false or maliciously critical of the financial condition of an insurer

Which of these would likely be considered an unfair claims settlement practice

Offering settlements that are less than the fair value to offset insurer expenses

Which of these is NOT an unfair claims settlement practice

Offering to settle a claim by arbitration

Which of the following would be a valid reason for suspending or revoking an insurance agent's license

Participating in the acts of twisting

What effect can a long-term care benefit rider have on a life insurance policy

Reduced death benefit

What could be the potential result of taking out a cash value loan under a life insurance policy

Reduces the amount receivable upon surrender of the contract

A life insurance policy owner would like a dividend option that results in a limited current outlay of funds. Which dividend option would be chosen

Reduction of premium payment

All of these are unfair trade practices except

Reinsurance

Which situation does not require an agent to provide a suitability statement to the annuity company

When an agent discusses annuities in general with a client, but no specific recommendations is made

An insurance company can be liable for producers unauthorized acts

When the agency contract is unclear concerning the authority given

A policy is permitted to take out a policy loan on a whole life policy at what point

When the policy has a value

The conversions option for group term insurance may be exercised by an employee

Within 31 days of terminated employment

Which of these is NOT an underwriting responsibility of life insurance agent

Determining the final rate classification

A consumer who has been recently denied insurance, credit, or employment based on an unfavorable consumer report MUST be advised as such. Which of the following does this statute originated from

Fair credit reporting act

Which benefit supplement added to a life insurance policy insures an entire family

Family term rider

Rick owns a variable universal life policy and chooses a variable death benefit option. What will typically happen to the death benefit as a result of this selection

Fluctuate with changes in the cash account

An annuity contract may be returned for a full refund during the

Free look period

Which life insurance policy provision allows a policyowner to cancel the policy and receive a full refund within a limited time period after policy delivery

Free look period

The rule governing advertisement of life insurance and annuities were created to provide

Full disclosure to the public of all material and relevant information

Insurable interest in one's own life is legally considered as

Generally unlimited

When the disclosure of an insured nonpublic information is involved, what is the insurer obligated to do

Give notice, explain, and allow opting out

What is the name of the rider that provides an additional purchase option in a life insurance policy

Guaranteed insurability rider

An agents license may on be suspended or revoked if the agent

Has been afforded a right to a hearing

All of these are considered features of whole life insurance except

Initial premium is lower than for an equivalent amount of term insurance

The medical information Bureau consists of members from which group

Insurance companies

Which of the following situations would qualify an insured to receive funds from an accelerated (living) benefit rider

Insured is expected to remain in a nursing home for life

The ____ is required to notify the state corporation commission in the event of appointment termination

Insurer

Which of these statements is NOT true regarding a cash value loan against a life insurance policy

Interest payments made by policyowner are deductible

When the policy loan is requested by a policyowner and it requires the consent of beneficiary designation is this

Irrevocable beneficiary

All of these are duties that a producer may be required to perform when delivering an insurance policy except

Leave a conditional receipt with client

Which of these is Not a common life insurance Nonforfeiture option

Life income annuity

An agent who informs an applicant that there are no exclusions in an insurance policy has engaged in

Misrepresentation

In Virginia, false advertising is an example of

Misrepresentation

J the agent makes false statements to a prospective client about the projected dividends for a policy. J may be found guilty of

Misrepresentation

Life insurance premiums are computed on what three factors

Mortality, interest, expenses

The contractual rights which allow the owner of a deferred annuity to surrender the cash value several years before the annuity date are called

Nonforfeiture option

When an issuer discovers (during the claim process) that the insured's age was accidentally misstated on the life insurance application, the insurer will likely

Pay an amount premiums would have purchased at the insured's actual age

In Virginia, any person acting as an agent for unlicensed insurer is

Permissible only if acting as a licensed surplus lines broker

A signed good health statement may be requested by a life producer at the time of

Policy delivery

Which statement regarding an adjustable life insurance policy is NOT true

Policy loans are not permitted

What happens to a life insurance policy loan balance exceeds the cash value

Policy will no longer be in forced

Which of the following does the commissioner of insurance NOT have the authority to examine its business records

Policyholders

The beneficiary of a life insurance policy is normally selected by whom

Policyowner

Which of the following would NOT be a reason for purchasing life insurance on a child's life

Provide benefits for the child if the parents die

The automatic premium loan provision can be accurately described as a

Provision that provides a policy loan to pay any premium by the end of the grace period

An insured is entitled to coverage under a policy that a prudent person would expect it to Provide. This principle is called

Reasonable expectations

Which of the following would NOT have a restricted ability to enter into a contract

Small employer

Licensed agent in Virginia are authorized to

Solicit, receive, and forward applications to the insurer

Which of the following approves continuing education courses for credit in Virginia

State continuing education board

Which of the following has the power to suspend or revoke an agent's license

State corporation commission

Which statement regarding the joint and survivor life insurance settlement option is not true

The amount of each installment is larger than the single life income option

K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective

The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured

Which of these is not a reason to buy a term life insurance

To accumulate savings All of these are unfair trade practices except

What is the effect of the market value adjustment in a market value adjustment annuity

Transfers some of the investment risk to the policyowner

How long does protection normally extend to under a limited pay whole life policy

Until age 100

An agent's insurance records must be provided to the state corporation commission

Upon the requests of the state corporation commission

The reason for backdating a policy is

to obtain a premium rate based on an earlier age


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