Insurance Exam: life (Iowa laws, rules, and regulations pertinent to life only)

To be eligible to purchase a group insurance policy, a nonprofit industrial association must be incorporated for how long? A) 3 years B) 5 years C) 10 years D) 1 year

10 years

in iowa, a group insurance policy issued to trustees of a fund established by two or more employers must cover how many eligible, insurable employees at the time of issue A) 50 B) 100 C) 1000 D) 10

100

a group insurance policy issued to a nonprofit industrial association must cover at least how many employees at the dat of issue A) 100 B) 1000 C) 10 D) 50

1000

a group life insurance policy issued to an employer to insure employees of that employer, must cover how many employees at the date of issue? A) 2 B) 10 C) 25 D) 100

2

within how many months must a person be expected to die from a sickness in order to be classified as terminally ill? A) 3 B) 6 C) 12 D) 24

24

what is the name of the insured who enters into a viatical settlement A) viatical broker B) viator C) third party D) contingent

Viator

when may an insurer determine its own maximum interest rate for life policy loans A) only when the loan is not qualified B) at any time C) at no time D) only when the loan is qualified

at no time

which of the following is correct regarding credit life insurance A) it has a maximum term of 20 years B) it insured the life of a debtor C) it is purchased on an installment basis D) it insured the life of a creditor

it insured the life of a debtor

who is the person, other than a Viator, that enters into a viatical settlement contract A) provider B) purchaser C) effectuator D) broker

provider

illustrations used in the sale of life insurance policies must contain all of the following EXCEPT A) the initial death benefit B) the insureds financial classification C) the rating classification the illustration is based on D) a dividend option election

the insureds financial classification

which of the following would NOT be relevant in helping the producer determine if his life insurance policy recommendation is suitable for a client A) the information in the buyers guide B) type of policy C) clients financial situation D) clients age

the information in the buyers guide

which of the following is a permissible adjustable policy loan interest rate taken out in connect with a life insurance policy? A) the interest rate is fixed 3% and it compounded quarterly B) the interest rate is relative to the attained age of the insured C) the interest rate is negotiated at the time of solicitation; it is relative to the policy premium, duration, renewability, and benefits D) the interest rate is no greater than the rate used to compute the cash surrender value of the policy plus 1% per year

the interest rate is no greater than the rate used to compute the cash surrender value of the policy, plus 1% per year

in a life settlement contract, whom does the life settlement broker represent A) the beneficiary B) the life settlement intermediary C) the owner D) the insurer

the owner

who has the right to assign the benefits and/or all other incidents of ownership under a group life insurance policy A) the insurer B) the policyholder C) the person insured D) the beneficiary

the person insured

except for nonpayment of premiums, the validity of a group life insurance policy be challenged after the policy has been in force for a period of A) 1 year B) 2 years C) 3 years D) 6 months

2 years

when an insurance policy provides for payment to a beneficiary the company must pay interest if the proceeds aren't paid within A) 7 days B) 10 days C) 30 days D) 31 days

30 days

conversion privilege in group life insurance policies must be exercised within what period of time after termination of group coverage A) 10 days B) 31 days C) 90 days D) 6 months

31 days

in iowa, a group life insurance policy must provide a grace period provision of at least A) 10 days B) 30 days C) 31 days D) 7 days

31 days

which of the following is NOT a producers responsibility when making recommendations for an annuity exchange A) obtain information on the persons financial status B) make recommendation record available for the commissioners review C) always comply with the NASD conduct rules D) maintain records of all the information pertaining to the recommendation

always comply with NASD conduct rules

In Iowa, group insurance may be written to provide insurance coverage for A) any group of 10 or more individuals that come together for the purpose of purchasing group life insurance B) any group individual C) any group of 10 or more individuals D) any group that conforms to one of the description of eligible groups as established by the insurance division or that receives special approval from the Commissioner

any group that conforms to one of the descriptions of eligible groups as established by the insurance division or that receives special approval from the commissioner

violation of life insurance policy replacement rules may result in which of the following penalties for an insurance producer and/or insurer A) monetary fine B) suspension or revocation of license C) forfeiture of commissions D) an or all of the above

any or all of the above

all of the following statements are correct regarding credit life insurance EXCEPT A) benefits are paid to the borrowers beneficiary B) the amount of insurance permissible is limited per borrower C) premiums are usually paid by the borrower D) benefits are paid to the creditor

benefits are paid to the borrowers beneficiary

which of the following would be considered a violation of life insurance advertising regulations A) calling an insurance policy an investment plan B) not guaranteeing dividends C) making oral sales presentations D) informing the applicant the sole subject of the sale is insurance

calling an insurance policy an investment plan

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 A) multiple protection insurance B) credit life C) credit health D) decreasing whole life

credit life

which of the following would be the beneficiary in credit life insurance A) insured B) company C) borrower D) creditor

creditor

which of the following is TRUE about credit life insurance A) debtor is the policy beneficiary B) creditor is the policyowner C) debtor is the annuitant D) creditor is the insured

creditor is the policyowner

which of the following is NOT allowed in credit life insurance A) creditor having a collateral assignment on the policy B) creditor requiring that a debtor has a life insurance C) creditor becoming a policy beneficiary D) creditor requiring that a debtor buys insurance from a certain insurer

creditor requiring that a debtor buys insurance from a certain insurer

which of the following types of insurance policies is most commonly used in credit life insurance A) whole life B) equity indexed life C) decreasing term D) increasing term

decreasing term

which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors A) risk exposure B) morbidity C) life expectancy D) mortality rate

life expectancy

which of the following documents must be provided to the Policyowner or applicant during policy replacement? A) notice regarding replacement B) disclosure authorization form C) buyers guide and policy summary D) policy illustration

notice regarding replacement

During replacement of life insurance, a replacing insurer must do which of the following? A) designate a new producer for a replaced policy B) send a copy of the notice regarding replacement to the department of insurance C) obtain a list of all life insurance policies that will be replaced D) guarantee a replacement for each existing policy

obtain a list of all life insurance policies that will be replaced

what is the required annuity training for producers in this state? A) annual 4 credit training course B) one time 4 credit training course C) 3 hours of continuing education every renewal period D) there is no requirements

one time 4 credit training course

the life insurance solicitation regulation was promulgated to do the following A) outline prohibited practices in insurance solicitation B) protect the insured against unfair practices C) provide adequate to consumers regarding relative cost of insurance products D) compare coverage of policies during replacement

provide adequate information to consumers regarding relative cost of insurance products

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance? A) disclosure rule B) replacement rule C) reinstatement rule D) conversion rule

replacement rule

a woman has a life policy in force for $300,000. she is terminally ill. she wants to get an "advance" from her death benefit to help pay her mounting medical bills. she met some people who said they could advance her $100,000 if she would sign ownership over to them. which of the following is true? A) she probably met with a viatical settlement company B) she is changing from an increasing term policy to a decreasing term policy C) she probably applied for accelerated payment D) she cannot sign over a policy to a third party

she probably met with a viatical settlement company

which of the following means having an illness or sickness that can reasonably be expected to result in death in 24 months or less? A) fatal illness B) malignant illness C) terminal illness D) chronic illness

terminal illness

the individual conversion policy CANNOT exceed A) the amount of insurance being terminated B) the amount of insurance requested by the insured C) the amount of insurance dictated by the employer D) the amount of insurance afforded by the premiums paid to that point

the amount of insurance being terminated

the initial amount of credit life insurance may NOT exceed A) the borrowers annual income B) the amount to be repaid under the contract C) an amount set by statute and adjusted regularly for inflation D) the borrowers monthly income

the amount to be repaid under the contract

which of the following is true if an insurer bases a life insurance policy loan interest rate on a published monthly average A) the policy loan must not exceed one half the cash surrender value, or the average cash surrender value published in the previous year B) the average must not exceed the monthly average of the month ending 2 months before the date the rate is determined C) the average must be no less than the monthly average of the month of loan issuance D) the published monthly average must appear in a recognized financial index

the average must not exceed the monthly average of the month ending 2 months before the date the rate is determined

suitability is based on all of the following EXCEPT A) the clients age B) the clients insurance objectives C) the clients financial situation D) the clients initial premium

the clients initial premium

which of the following is TRUE regarding the insurance amount in a credit life policy A) allowable amount of coverage is determined by the state insurance commissioner B) the amount of coverage can be greater than the amount owed C) the creditor can only insure the debtor for the amount owed D) the creditor may insure the debtor for an unlimited amount of coverage

the creditor can only insure the debtor for the amount owed

according to the regulations on life insurance policy solicitation, what two documents must be presented to an applicant during the application process A) the buyers guide and a life insurance cost index B) the policy summary and the policy disclosure C) the policy disclosure and a life insurance cost index D) the policy summary and the buyers guide

the policy summary and the buyers guide

when making a recommendation for a group insurance policy, who must the producer regard when determining the suitability of a particular policy A) the manager or supervisor of the group B) the same or similar demographic of the insureds C) the prospective certificate holder D) the policyowner

the policyowner

which of the following best defines the "owner" as it pertains to life settlement contracts A) a fiduciary for the contract B) the insurance provider C) the policyowner of the insurance policy D) a financial entity that sponsors the transaction

the policyowner of the life insurance policy

How must a replacing producer respond to an applicant wishing to replace existing life insurance? A) the producer must collect the existing policies and turn them over to the replacing insurer B) the producer must request the permission of the existing insurer C) the producer has no specific duties D) the producer must provide the applicant with a notice regarding replacement

the producer must provide the applicant with a notice regarding replacement

what is the purpose of life insurance solicitation regulations A) to help producers understand different policies B) to help consumers compare life insurance products in regard to their relative cost C) to provide information regarding replacement of policies D) to name producers required and prohibited actions for product advertising

to help consumers compare life insurance products in regard to their relative cost

when a producer uses an illustration while selling a life insurance policy, which of the following terms is the producer forbidden to use A) incomplete illustration B) vanishing premium C) lapse supported D) self supporting

vanishing premium

which of the following terms will be permissible in describing a life insurance policy in company advertisement A) risk free plan B) investment plan C) retirement plan D) variable plan

variable plan

an insured has been diagnosed with a life threatening disease, and is given aprroxamitely 6 months to live. the insured is in a hard financial situation which will worsen with the upcoming medical expenses. which of the following options could the insured utilize right away A) viatical settlement B) liquidity C) surrender D) change of beneficiary

viatical settlement

which of the following terms is used to describe a person, other than a Viator, that enters into or effectuates a viatical settlement contract A) viatical settlement purchaser B) viatical settlement broke C) viatical settlement effectuator D) viatical settlement provider

viatical settlement provider

which of the following statements would best describe the different between vatical settlements and accelerated death benefits A) viaticals are determined by morbidity, but accelerated death benefits use mortality tables B) vatical use morality tables, but accelerated death benefits are determined by morbidity C) vjiaticals are funded by a third party, accelerated death benefits are provided by the insurer that issued the original policy D) viaticals are provided by the insurer that issued the original policy, and accelerated death benefits are funded by a third party

viaticals are funded by a third party and accelerated death benefits are provided by the insurer that issued the original policy