INSURANCE LICENSE FINAL EXAM STUDY GUIDE
Premiums for life insurance are not tax-deductible and death benefits, received in a lump sum, are not taxable. Which of the following is taxable?
Accelerated benefits
A participating life policy refunds a portion of the premiums paid to the insured. These refunds are in the form of an annual dividend. Dividends are determined by the difference between the gross premiums paid, and the loss experience of the insurer. What option allows the policyholder to leave the dividends with the insurer to accumulate interest?
Accumulation at interest option
Sandra wants to have flexibility with her life insurance policy to accommodate changes in her situation. She should consider:
Adjustable Life
What policy provides flexible premiums, cash values, face amounts, premium-paying period and length of coverage?
Adjustable life
An example of an unfair claim settlement practice would include
Advising a claimant of the possibility that, should the claimant reject a settlement offer, an arbitration award might be less than the offer
In North Carolina, what is the rule on agents retaining any portion of funds received for the payment of losses?
Agents can never retain a portion of funds received for the payment of losses.
LMO insurer is incorporated in New Hampshire, conducts business in all of the eastern seaboard states and in Germany. How is LMO insure classified in Germany?
Alien
How are personal life insurance dividends taxed?
All of the above
Thomas is applying for a life insurance policy. Life insurance applications require a signature from:
All of the above
What is business life insurance used for?
All of the above
Which of the following employees would not be covered by Social Security?
All of the above
Who must sign the insurance application?
All of the above
What is not required of any regular salaried officer, employee or member of a licensed society who devotes substantially all of their services to activities other than the solicitation of fraternal insurance contracts from the public?
An examination or license
A conditional receipt issued by the agent at the time of application provides which of the following?
An indication that coverage will begin as of the application date if the policy is issued without modification
Defamation occurs when:
An individual or entity makes false, derogatory statements about an insurer's financial condition that are calculated to injure the insurer's business
A foreign insurer is:
An insurance company conducting business in a state in which it wasn't incorporated.
All of the following are true of the life with period certain annuity payout option, EXCEPT:
Any balance in the annuity fund after the period certain ends is refunded to a beneficiary.
Susan is buying a life insurance policy. The buyer's guide must be given to the purchaser at the time of:
Appication
Holly would like to purchase a life insurance policy. In life insurance, insurable interest must be present at the time of:
Application
Underwriting is the process that insurance companies use to select, classify and rate risks. What is the biggest source of information used in underwriting?
Application
Which of the following is the primary source of information used in underwriting an insurance policy?
Application
If the Commissioner is of the opinion that there is evidence to charge any person with a criminal violation, the Commissioner may:
Arrest with warrant
Which of the following is NOT an unfair claim practice?
Asking for further information
When the policyholder sells, gives or pledges a policy as collateral, it is called:
Assignment
All of the following are life insurance settlement options, EXCEPT:
Automatic premium loan
Sadie is looking at buying an adjustable life policy, which of the following is not a change that she can make to it?
Changed the named insured
All of the following statements are false regarding who may make modifications to a life insurance policy, EXCEPT:
Changes to the policy can only be implemented by an executive officer of the insurer.
The practice of using misrepresentation to induce a policyholder to replace a policy issued by the insurer the producer represents is called:
Churning
A person who intentionally misstates financial information is guilty of a:
Class 1 felony
A person found guilty of selling insurance without a license is subject to a:
Class 1 misdemeanor
A person who refuses to exhibit their books to the Commissioner is guilty of a:
Class 1 misdemeanor
Which of the following is a beneficiary designation based on a group of people with shared characteristics?
Class designation
What unfair trade practice manipulates through the prospect of something desirable?
Coercion
All parties to a contract must be of a legal age, mentally capable of understanding the terms of the contract, and not influenced by drugs or alcohol. Which of the following elements of a legal contract is described?
Comptent Parties
What type contract is said to be, if...then?
Conditional
All of the following are characteristics of qualified retirement plans, EXCEPT:
Contributions are not tax-deductible for the employee.
What type of group plan requires 75% participation?
Contributory
Which of the following statements is false regarding the conversion option for group life insurance policies?
Converted coverage may be term or whole life, depending on the needs of the insured.
In a universal life insurance policy, the two most common adjustments made during a month are:
Cost of death protection deducted and current interest rate credited
All of the following are true regarding credit life insurance, EXCEPT:
Credit life insurance is only sold through a group policy.
Social Security quarters of coverage earned are based on ________ quarters worked, and ________ be earned consecutively.
Cumulative; do not need
A policy known as interest-sensitive whole life is:
Current assumption whole life
The time period during which children are young and financially dependent upon their parents is termed the:
Family dependency period
This policy insures the primary breadwinner with whole life and level term:
Family maintenance policy
Insurance contracts are conditional. Which of the following would be a characteristic of a conditional contract?
If a loss occurs, then the insurance company will pay benefits.
Which of the following statements best describes how cash value in a life insurance policy is taxed?
If the policy cash value is surrendered, the interest earned on the cash value is taxable as ordinary income.
All of the following are true regarding claims for life insurance policies, EXCEPT:
In order for death benefits to be paid, the insurer must receive notice of the insured's death, but does not need the death certificate.
___________ policies have premiums that fluctuate between the current rate and maximum rate, as stated in the policy.
Indeterminate premium
Which act limits the disclosure of information collected in connection with insurance transactions and enables insurance applicants and policyholders to obtain the reasons for any adverse underwriting decision?
Insurance Information and Privacy Protection Act
All of the following are considered minimum information that must be on a life insurance illustration, EXCEPT:
Insured's marital status
All of the following statements are true regarding warranties, EXCEPT:
Insureds are held to the principle of warranties.
All of the following statements are correct regarding variable universal life contract charges and fees, EXCEPT:
Interest earned is credited to the death benefit.
There are several types of whole life policies. Which of the following types of whole life policy offers flexible premium payments tied to interest rate fluctuations?
Interest-sensitive/Current assumption whole life
An adjustable life policy allows the policy owner to make all of the following changes, EXCEPT:
Invest premiums in a separate account
Term coverage has many applications, such as mortgage protection. It gives the insured the best "bang for their buck." It is not without its disadvantages, however. Which of the following is a disadvantage of term insurance?
It becomes more expensive over time.
Continuous premium, limited premium and single premium are types of whole life policies. Which of the following is indicative of a continuous premium method?
It has the lowest annual premium
Some universal policies permit a cash withdrawal. All of the following are true statements about universal life, EXCEPT:
It is treated as a loan
Which of the following is not true regarding the cash value in an ordinary whole life policy?
It may be used as a policy loan without affecting the death benefit.
How is the North Carolina Life and Health Insurance Guaranty Association to be used in advertisements?
It must never be mentioned.
Which of the following statements about a temporary insurance agreement is CORRECT?
It provides temporary coverage until an application is rejected or the policy is issued.
Which of the following explanations best describes the purpose of the waiver of premium provision of a life insurance policy?
It waives the insured's premiums if the insured is totally disabled before a specified age.
In Ray's application for life insurance an applicant failed to complete one part regarding family history. In his statement, the agent described the family as long-lived and healthy. If an insurance company accepts the application in the incomplete form and the applicant for coverage dies young from a cardiac condition that had taken the lives of both his parents before age 50, will the company deny or accept the claim of the beneficiaries?
It will pay the claim, because in accepting the application, it waived its right to the missing information.
Jacob has been insured under his employer-sponsored group life insurance plan for seven years. He becomes totally disabled upon termination of his group coverage. Which of the following is true?
Jacob must be permitted to continue group coverage for six months.
On January 5, Paul submitted an application without the initial premium. The insurer requires a medical exam, which is completed on January 17. On January 22, the insurer issued the policy standard, and the producer delivers it on January 25. When is coverage effective?
January 25, after the statement of good health is signed, and the initial premium is paid.
A limited payment life insurance policy is best suited for:
Josh, a 25-year old successful entrepreneur with extra funds, who doesn't want to pay life insurance premiums when he retires.
Kenny is self employed. He owns a book bindery. Which statement accurately describes his Social Security tax obligation?
Kenny must pay the employer and employee's tax portions.
Mary's Cosmetics purchases a life insurance policy on Samantha, the leading makeup salesperson in the nation. Which business continuation plan did Mary's Cosmetics buy?
Key person insurance
In order to be valid, a contract must have:
Legal purpose
Which term policy has level premiums and a level face amount?
Level Premium term
Which of the following policies has a level face amount with level premiums?
Level premium term
Which of the following is true regarding level premiums?
Level premiums can only be paid annually
Which of the following does not constitute policy replacement?
Life insurance coverage in which a loan is not repaid to the insurer
Gina and Jerry are purchasing life insurance. They decided on policies that would be paid up in 20 years. What type of policies did they purchase?
Limited payment policies
Who is a person authorized by the Commissioner to solicit contracts for credit life, accident and health, credit, travel accident and baggage, motor club, and dental services coverages?
Limited representative
Another term for insurers' expense is:
Loading
Some riders can affect the death benefit of a life insurance policy. Which of the following riders can decrease the death benefit?
Long-term care rider
Luka is eligible to receive both spousal and retirement benefits. Which of the following is true?
Luka will receive the larger of the two benefits.
Marty purchases an annuity for his younger brother, Jacob. If Jacob is the person who will be receiving annuity payments, which of the following statements is true?
Marty is the contract owner and Jacob is the annuitant.
Martin pays his policy premiums on a monthly basis. Which of the following terms best describes the frequency that Martin pays his premiums?
Premium payment mode
Helen and Mark have purchased a policy to cover both of their lives. They know that there are benefits and also disadvantages of such a policy. Which of the following is not something that would be regarded as a benefit of a joint policy?
Premiums and face value cannot be changed.
What is the general rule for taxation of personal life insurance?
Premiums are paid with after-tax dollars; proceeds received in a lump-sum are received tax-free; proceeds received in installments are taxable only to the extent of interest earned.
Which of the following best describes the seven-pay test?
Premiums paid over a seven-year period cannot exceed the total level annual premiums for a paid-up policy in seven years.
What is the main purpose of the MIB?
Prevent fraud and misrepresentation
For what reason would the insurance company raise the death benefit of a universal life policy?
Prevent the cash value from growing too quickly
What is the basis for Social Security retirement benefits?
Primary insurance amount (PIA)
Which of the following statements is true regarding the taxation of premiums and interest in annuities?
Principal (premiums) is paid with after-tax dollars; interest is taxable income during the payout phase.
All of the following statements are true regarding insurance application procedures, EXCEPT:
Producers can fill in any missing information they discover on the application.
What are the benefits of a convertible and renewable term life insurance policy?
Proof of insurability is not required to convert or renew coverage.
The purpose of the North Carolina Life and Health Insurance Guaranty Association is to:
Protect against failure in the performance of contractual obligations
What is the primary purpose of the entire contract provision in a life insurance policy?
Provide assurance that the policyholder has all necessary policy documents in their possession
A universal life plan differs from a whole life plan in all of the following ways, EXCEPT:
Provides death protection and cash value
Which of the following would best describe defamation?
Publishing a brochure with false financial information about an insurer
What are the two terms used to describe whether or not special federal tax benefits apply to retirement plans?
Qualified; nonqualified
In discussing a potentially lucrative group policy with a business owner who had purchased a business and just moved into the community, an established producer jokingly remarked, "Well, would it sweeten the pot if I could assure you membership in the country club?"The producer added, "I'm on the membership committee and while we're not accepting new application right now, I'm sure something could be worked out." These remarks constituted:
Rebating
What nonforfeiture option allows the policyowner to purchase paid-up whole life coverage at a reduced face amount based on the policy's existing cash value?
Reduced paid-up insurance
Which of the following is not a dividend option?
Reduced paid-up insurance
John purchased a life insurance policy. After a year, John buys the same policy without having to show proof of insurability. What type of policy did John buy?
Renewable term
All of the following acts are considered unfair trade practices, Except:
Replacement
Which of the following terms best describes the applicant's statements on an insurance application?
Representations
All of the following, if performed frequently enough to indicate a general business practice, are unfair claims settlement practices, EXCEPT:
Requiring submission of preliminary claim report or a formal proof of loss before paying a claim.
An insured commits suicide while the suicide clause is in effect. What will the insurer do?
Return all premiums to the beneficiary
Mr. Brown committed suicide during the suicide clause of his insurance policy. The insurance company will:
Return all premiums to the beneficiary
Which beneficiary designation is most appropriate for a person who wants to name his spouse as a beneficiary of his life insurance policy, and simultaneously retain full policy ownership rights?
Revocable Beneficiary
Rick is planning on getting married next month. He currently has a $100,000 whole life participating policy. Because he is planning a family, he wants to increase his life insurance while keeping his costs down. Which of the following options would best suit his needs?
Rick could use the dividends to purchase paid-up additions.
All of the following are ownership rights, EXCEPT:
Right to make changes to the policy
In which of the following types of annuities does the payment period begin immediately after the annuity is purchased?
SPIA
Insurable interest requires that an individual have a valid concern for the well being of the person insured. In a life policy insurable interest can be present in all of the following, EXCEPT:
Second cousins
An agent who wants to qualify to sell variable life plans must:
Secure a license from FINRA, as well as the state
Which of the following laws defined a security product?
Securities Act of 1933
All of the following statements are true about the accidental death benefit (ADB), EXCEPT:
The amount paid is one half of the face amount of the life insurance policy.
If a company issues a conditional receipt to an applicant who has paid an initial premium for a policy that does not require a medical examination:
The applicant is immediately covered.
All of the following are part of the consideration element of an insurance contract, EXCEPT:
The applicants promises
Martin is applying for a life insurance policy. When is a statement of good health required:
The application does not include the premium
Which of the following characteristics does not describe convertible term life insurance policies?
The attained age is the insured's age upon purchase of the term life insurance policy.
A grace period is a component of every life insurance contract. The grace period is the amount of time, following the date that the premium is due, that the policy will remain in force. If the insured dies during the grace period, how will it affect the proceeds of the policy?
The benefits are paid to the beneficiary, minus the outstanding premium.
All of the following are characteristics of whole life insurance, EXCEPT:
The cash value in a permanent life insurance policy is not a nonforfeiture benefit.
All of the following are involved in the collection of an applicant's medical history, EXCEPT:
The consumer report
The producer is responsible for field underwriting. Field underwriting is done when the producer is in front of the applicant. Which of the following is not expected from a producer as part of the field underwriting?
The producer should note how many children the applicant has in the house.
Which of the following must be adequately disclosed by the insurance agent at the time an application is made, prior to accepting the applicant's initial premium, for a prearrangement insurance policy?
The provider of the funeral or cemetery merchandise or services
All of the following are true regarding viatical settlements, EXCEPT:
Viatical settlements are a type of life insurance contract.
Alex purchases a single premium immediate annuity on March 1. If he elects monthly annuity payments, when will he receive his first annuity payment?
april 1st
Eddie wants to use a nonforfeiture option. Which of the following may Eddie not use?
b. Accumulation at interest
The Common Disaster Clause:
b. Requires the primary beneficiary to outlive the insured by a certain number of days in order to receive the death benefit in a common disaster between the insured and the primary beneficiary
Who are the named individuals or entities the policyowner designates to receive life insurance policy proceeds upon the insured's death?
beneficiaries
What are the two types of refund life annuity payout options?
cash refund and installment refund
Lucas purchased an annuity for himself. He begins to receive annuity payments. If the amount of premium in the annuity has not been paid out upon his death, then his grandson will receive the balance. What type of annuity does Lucas have?
cash refund option
Which clause states that the policy owner must pay something of value for the insurer's promise to pay benefits?
consideration clause
The person who owns the annuity and pays the premiums is the:
contract owner
David purchased a term life insurance policy. After a year, David exchanges his term policy for a whole life policy without having to show proof of insurability. What type of policy did David purchase?
convertible term
All of the following policies are subject to life insurance policy replacement regulations, EXCEPT:
credit life
The value of each accumulation unit varies:
daily
All of the following is true regarding lump-sum payment of life insurance policy proceeds, EXCEPT:
distribution is taxed
Riders are available to help the insured customize their life insurance contract to fit their individual needs. All of the following are common riders, EXCEPT:
entire contract
The provision in a life insurance contract which states that the entire agreement between the insurer and the insured is contained in the contract, including the application if attached, insuring agreements, exclusions, conditions, declarations and endorsements is called the:
entire contract clause
Which of the following fixed annuities has a minimum rate of return and a current rate of return that is connected to the S&P 500?
equity indexed annuity
Certain riders allow the insured to add people to the policy as additional insureds. Which of the following is a type of additional insured rider?
family term rider
Which annuity provides a guaranteed minimum rate of return?
fixed annuity
Which of the following is characteristic of fixed annuities?
fixed interest rates during the payout period
Which provision prevents the insurer from making changes to a contract by citing documents not included in the policy itself?
free lock provision
Withdrawals or partial surrenders can be made on the cash value of a universal life policy. Which of the following is specified in the policy?
how much can be withdrawn
Under what conditions will the waiver of premium rider pay benefits?
if the insured is totally and permanetly disabled
The nonguaranteed elements of an insurance policy are:
illustrations
A trustee of a pension plan has what kind of interest in a person covered by the plan?
insurable interest
This provision identifies the named insured, type, and amount of coverage provided by the policy:
insuring clause
Of the following life insurance settlement options, which pays only the interest earned on the principal in periodic payments?
interest only
Which of the following settlements of a life insurance policy is taxable?
interest only
A settlement option that would leave the proceeds of the insurance policy with the insurer and the insurer would pay interest to the beneficiary on an installment basis is called:
interest only option
To protect a policyholder from an inadvertent lapsing of a contract, the automatic premium loan (APL) provision may be added to a cash value life policy. Which of the following statements is not true about this provision?
it can be applied for at any time
which of the following correctly describes the law of large numbers?
it states that as a groups size increases, its easier to predict the number of future losses over a specific time period.
George's life insurance policy covers two lives and pays the death benefits after the first person dies. What kind of policy does George have?
joint life
Of the following settlement options for life insurance, which can result in the insurer paying more in benefits than the principal plus interest?
life income
Of the following, who will receive the largest monthly annuity benefit from a $100,000 single premium immediate annuity?
man, age 70
Which of the following is not true about the impact of the annuitant's sex on the premium payments?
men live more dangerously so their premiums are higher.
The ____________ approach calculates the amount of money a family needs immediately upon the death of the insured to pay for their expenses and basic necessities.
needs
Life insurance dividends are:
never guaranteed
In North Carolina, how many continuing education credits may be carried over from one compliance period to the next?
no limit
The nonforfeiture option is designed to protect the policyholder from losing their entire investment if a policy is cancelled or surrendered. Which of the following is not a nonforfeiture option?
non-participating
What type of group plan requires 100% participation?
noncontributory
Randall's company has taken out a life insurance policy on a key employee - John. John is the insured, but the company is the owner of the policy. What rights does John have as the insured?
none of the above
Stock insurers are also called:
nonparticipating
Which form must be provided to applicants intending to replace a life insurance policy?
notice regarding replacement
George bought a $300,000 whole life policy when he was employed as a bank teller. Four years later, he changes jobs and begins working in a coal mine. If he is killed while working in the mine, what will the insurer do?
pay the claim
Of the following life insurance policy riders, which does not alter the amount of the death benefit?
payor
Which annuity payout option has a distinct beginning and ending?
period certain
Matt is a little short on cash and wants to access some of the cash in his life policy. A partial cash value distribution can be made. If he has the intention to repay the cash he takes out from his policy, it is considered a:
policy loan
All of the following statements are true regarding the accumulation period in an annuity, EXCEPT:
premiums are paid with pre-tax dollars
Field underwriting ________ adverse selection.
reduces
If a policy loan is unpaid, the automatic premium loan provision has the effect of deducting the amount of the loan with interest from the death benefit. What should the policyowner do to avoid this reduction in the death benefit?
repay the loan with interest
The statements made in an insurance application are held to a principle of:
representation
Which life insurance rider pays an amount equal to the total premiums paid as long as the insured dies during a certain time period, as stated in the policy?
return of premium
What is the term for a policy element that adds or takes away coverage?
rider
April completed her insurance application on the 9th of August. She paid her initial premium on the 10th of August. The insurance company issued the policy on the 16th of August. Her agent delivered the policy on the 17th of August. The insurer has a 15-day free look provision. When does she need to return the policy if she decides she does not want to purchase it, and wants her premium refunded?
september 1st
In addition to a life insurance producer license, producers selling variable products must have a(n):
series 6 or 7 license
Rates for insurance policies are based on:
sex and age
What type of premium is used to purchase an immediate annuity?
single
Reinsurance is defined as:
spreading risk from one insurer to another
Nick is single and retired at the age of 55. He does not have any dependent family members. Nick wants to purchase an annuity that will give him the largest monthly income. What annuity would you recommend to him?
straight life annuity
Tom's life insurance policy covers two lives and pays the death benefits after the second person dies. What kind of policy does Tom have?
survivorship life
Which of the following is the best definition of an annuity?
systematic liquidation of an estate
The insuring clause of a policy includes all of the following, EXCEPT:
the amount of the policy premium
All of the following options are available if the only logical beneficiary is a minor, EXCEPT:
the benefits can go directly to the estate of the insured.
What happens if an insured commits suicide 3 years after the policy inception?
the death benefit is paid
When Dakota's life insurance policy was written, it stated on the policy that Dakota was male. However, Dakota is female. On average, women tend to live several years longer than men. When Dakota died this misstatement was discovered. How did this impact the policy?
the death benefit was increased
Jon's life insurance policy contains a disability income benefit that will pay him a periodic income in the event he becomes disabled. What factor determines the amount of the benefit?
the face amount of the policy
James is past due on his life insurance premium by 5 days. His policy has a 30 day grace period. If James dies on day 15 of his grace period, what would the beneficiary receive?
the full amount, minus any past due premium
Who does a soliciting agent represent?
the insurer
When a juvenile covered by a payor rider reaches the specified age, what happens to the ownership of the policy?
the juvenile can assume ownership of the policy
Of the following individuals, who has the right to change the beneficiary designations in a life insurance policy?
the policy owner
Who may choose the settlement option for a life insurance policy?
the policy owner and the beneficiary
annuities protect against
the risk of prolonged life
Which of the following best describes the process used to select and classify risks?
underwriting
A common life insurance provision is the ___________, which states that if there is insufficient proof to show order of death when the insured and beneficiary die in the same accident, it is presumed that the insured died last, and the proceeds are payable to the named contingent beneficiary.
uniform simultaneous death act
A partial surrender is allowed in what type policy?
universal life
What type policy allows a partial surrender?
universal life
Ben applies for a life insurance policy on himself. How much insurable interest does Ben have in his own life?
unlimited
For which of the following annuities must an agent have a securities license in order to sell?
vairable annuity
This annuity is regulated as a securities product and agents selling this product must have a securities license:
variable annuity
variable annuities have:
variable interest rates and benefits
The third party that purchases a life insurance policy death benefit from a terminally ill insured is termed:
vatical settlement provider
Jennifer is trying to add her insurance premium payments to her budget. All of the following are accepted payment mode options, EXCEPT:
when she feels like it
Which type of life insurance provides living benefits?
whole
May an individual who holds a producer license in Texas qualify for a nonresident license in North Carolina?
yes
Riders covering additional insureds can be added to life policies. A popular rider is the children's term rider. All of the following can be covered by the children's term rider, EXCEPT:
younger siblings of the policyholder
If Becky wants to take a distribution from her qualified retirement plan, she should know that distributions can be made:
AT any time
Karl's grandmother has been diagnosed as being in end-stage renal failure. What provision of her life policy will giver her access to funds for rent, food and necessary medical services?
Accelerated benefits
Susan has a $500,000 permanent life insurance policy. She has paid $200,000 in premiums, and the policy has a cash value of $216,000. If Susan dies, her beneficiary will pay taxes on:
$0
In North Carolina, industrial life insurance policies have face amounts of no more than:
$1,000
What is the minimum penalty for willfully violating a cease and desist order of the Commissioner?
$1,000
Erin bought a $100,000 whole life insurance policy. When she is 65 she decides to surrender the policy for its cash value of $60,000. Of the cash value, $50,000 is premiums. How much of Erin's cash surrender is taxable?
$10,000
Brokers must put forth a bond of at least how much?
$15,000
Collin buys a fixed deferred annuity. Upon annuitization, he chooses the life annuity with period certain payout option. Collin will receive $3,000 each month with a 15-year certain period. If Collin dies after seven years, how much will his beneficiary receive?
$288,000
What is the maximum amount that the North Carolina Life and Health Guaranty Association will pay the beneficiaries of a deceased individual for annuities from an insolvent insurer?
$300,000
Judy wants to purchase whole life insurance, but cannot afford straight life insurance premiums. Her agent recommends she purchase economatic whole life. If Judy wants $500,000 of whole life coverage, which of the following is a possible arrangement?
$400,000 whole; $100,000 term
Any agent who signs a blank contract or policy of insurance will be fined a maximum of:
$5,000
The requirement for providing a Policy Summary will be satisfied by delivery of a written statement in the case of policies whose Equivalent Level Death Benefit does not exceed:
$5,000
Violating the law regarding a licensee's change of address results in a fee of:
$50
Joe becomes totally disabled. How much will Social Security pay Joe's wife, who relies on child support payments from Joe, to care for their 12-year twins?
1/2 joe's PIA
Mildred is age 58. She withdraws a sum of money from her qualified plan. What is the penalty?
10% penalty tax
Sara submitted a life insurance application along with the initial premium on December 10th. On December 23 the insurer issued the policy standard. Because of the Christmas holiday, the agent did not deliver the policy until December 28. A conditional receipt was issued without a required medical exam. When is coverage effective?
10-Dec
In North Carolina, what percentage of an agent's business can be controlled business?
100%
At what age may a minor purchase a life or health insurance contract.
15
If an insurer terminates an appointment with a producer, how much time does it have to notify the producer?
15 days
The minimum age requirement to become a licensed insurance producer in North Carolina is:
18
A life insurance policy is not payable for suicide that occurs within:
2 years
How long is the loan period on STOLI arrangements?
2 years
In most states, the period of contestability for material misrepresentations made on a life insurance application is:
2 years
This life insurance policy provides death protection for the insured's entire life, but premiums are not paid for the insured's entire life.
20-pay life
On June 26, Brian's life insurance application was submitted with the initial premium, and on June 30 the insurer issued the policy standard. Due to it being close to a holiday, the agent did not deliver the policy until July 6. A conditional receipt was issued without a required medical exam. When is Brian's coverage effective?
26-Jan
The appropriate rider allows premium payments to be waived in the event of disability. What is the normal waiting period for premiums to be waived?
3 or 6 months
After proof of death, a life insurance policy must be paid within how many days to avoid paying interest?
30 days
In North Carolina, a life insurance policy has a grace period of:
31 days
Tim's Toy Shop has gone bankrupt and needs to terminate all employees. Tim informs all employees of their right of conversion under the employer-sponsored group life plan. How many days are Tim's employees allotted to convert their group life coverage to individual coverage?
31 days
A life insurer doing business in North Carolina cannot declare a policy forfeited unless the payee is mailed a notice no more than how many days in advance?
45 days prior to the due date
What is the maximum amount of time a lapsed life insurance policy can be reinstated?
5 years
Maggie incurred a10% penalty to distributions from her qualified plan because they were made before she turned:
59 1/2
A life insurance application can usually be backdated for a maximum of how many months?
6 months
Conversion from a group policy to an individual policy must be made within a maximum of how many days of termination from the group coverage?
60
ABC Insurer sells a $500,000 single premium immediate annuity to four different people. Who receives the largest check?
60-year old male
What is the full Social Security retirement age for a person born after 1960?
67
Telemarketers may call phone numbers not on the Do Not C all List from
8am-9pm
What happens if Becky takes her distributions from her qualified plan prior to age 59 1/2?
A 10% penalty tax is assessed.
Joyce applies for a health insurance policy. When the agent delivers the policy to Joyce, an additional premium is required to account for Joyce's medical conditions. Joyce must agree to pay the additional premium before the policy is effective. The insurer has made:
A Counter-offer
All of the following are true of the straight life income option for annuities, EXCEPT:
A beneficiary will receive any balance of the annuity upon the annuitant's death.
Which of following does not not demonstrate constructive delivery?
A conditional receipt is issue to the applicant.
What is an agreement by which the insurer is bound to pay money as reimbursement for the destruction, loss, or injury of something in which the other party has an interest?
A contract of insurance
A notice of information practices must contain, among other items:
A description of the rights and the manner in which such rights may be exercised
Universal life policies are similar to whole life in that they:
Both provide death protection and cash value
How do annuities provide guaranteed income for life?
By systematically liquidating an estate
Which life insurance dividend option does not increase a policy's cash value?
Cash payment
Which of the following nonforfeiture options does not allow the insured to reinstate the policy:
Cash surrender
All of the following are guaranteed features in a variable life insurance policy, EXCEPT:
Cash value
Which of the following is true regarding the taxation of universal life insurance policies?
Cash value grows tax-deferred, but may be subject to taxation upon withdrawal.
What must an insurer have to be admitted?
Certificate of authority
Which of the following is considered an unfair claims practice?
Failing to affirm or deny coverage within a reasonable time after receiving proof of loss
The Commissioner may suspend, revoke or refuse to issue or renew an agent license for which of the following reasons?
Failure to pay child support
Brady is worried about his policy becoming a MEC, if it does it will be taxed on all of the following EXCEPT:
Death benefits
Family income policies consist of whole life and:
Decreasing term
Judith is injured in a car accident. She incurs a covered loss of $50,000. she is required to pay $3,000 before the insurer will cover 80% of the covered loss. Which of the following terms best describes the $3,000 Judith must pay?
Deductible
If an agent were to publish literature that is false or maliciously critical of another insurer calculated to injure a person engaged in the business of insurance, the agent would be committing:
Defamation
What is the primary purpose of the Securities Act of 1933?
Defines a securities product
Charlie is purchasing a life insurance policy. The policy summary is usually given to the purchaser at the time of:
Delivery
What would an insurance company do if an insured commits suicide within the contracts contestable period?
Deny the claim due to the suicide clause
Special tax advantages of qualified plans include all of the following, EXCEPT:
Distributions are tax-deferred.
LMO insurer is incorporated in New Hampshire, conducts business in all the eastern seaboards states and in Germany. How is LMO insurer classified in New Hampshire?
Domestic
What is a disadvantage of fixed annuities?
Earning potential may not be enough to offset the effects of inflation
Which of the following life insurance policies is not an example of third party ownership?
Economatic
Which of the following is not a characteristic of qualified plans?
Employee contributions are not tax-deductible.
Which policy works the same way as universal life, but has an interest rate that is tied to the stock market index?
Equity indexed universal life
Which policy has a face amount that increases by five times the original policy face when the insured child reaches the age of 21?
Estate Builder
A producer submitted an application with a premium. After underwriting, the insurer sent back the policy, rated, with an impairment rider. What should the producer do now?
Explain the issue and collect an additional premium.
What nonforfeiture option permits the policyowner to use the cash values to purchase paid-up term life insurance coverage?
Extended term
Which nonforfeiture option is the "automatic" option?
Extended term option
What part of a mortgage reduction policy decreases over time?
Face amount
On February 7, Tina's life insurance policy application was submitted without the initial premium. The insurer requires a medical exam, which is completed on February 17. On February 21, the insurer issued the policy standard, and the producer delivered it on February 24. When is coverage effective?
February 24, after the statement of good health is signed, and the initial premium is paid.
The producer notices he made a mistake in completing the application. He or she should:
For a small change, he or she should fix the mistake, and then have the client initial the changes in his or her presence.
LMO Insurer is incorporated in New Hampshire, conducts business in all of the eastern seaboard states and in Germany. How is LMO Insurer classified in New York?
Foreign
A covered worker must be ______ insured to receive Social Security retirement benefits.
Fully
The cash value in a whole life policy is held in the insurance company's:
General account
Gerald has a chronic medical condition. What will his risk classification be? How will his premium be affected?
Gerald's risk classification will be substandard. His premium will be higher.
Ashley, the producer, notices that she forgot to ask a few questions on the application after leaving the clients home. She is in a hurry to submit the application, what should she do?
Go back and ask the questions, then have the client initial the changes
The producer notices that he or she forgot to ask a few questions on the application after leaving the clients home. Before submitting it he or she should:
Go back and ask the questions, then have the client initial the changes
The stipulated period of time, allotted by the insurance company, to allow a policyholder to make an overdue payment while the policy remains in force and coverage is provided is called the _____________.
Grace period
Which type of life insurance policy allows an employer to deduct premium payments as an ordinary business expense for tax purposes?
Group life insurance
Cash value in a whole life policy is:
Guaranteed
Mrs. Olsen worries that her health may deteriorate in the future. She wants to provide adequate coverage for herself and her family. Which rider should she consider for her life policy?
Guaranteed insurability rider
Randy drives racecars and scuba dives in his spare time. Will he be able to purchase life insurance with these types of hobbies?
He will be able to purchase life insurance but his premiums will be higher.
In addition to being a commercial pilot, Michael also flies his own private small plane. What will most likely happen when he applies for life insurance?
He will be charged a higher premium to compensate for the added risk.
Angelina purchased a policy with a face value of $100,000. She died 10 years later and the policy paid a death benefit of $50,000. Why?
Her policy was a decreasing term
Level premium life insurance policies usually have ______ premiums in order to account for the greater risk of death with advancing age.
Higher
In life insurance the risk of death increases with age, so premiums must be ______ in ______ years to account for this risk.
Higher: Lower
Chuck is in the military. How does this affect payment of the death benefit on his life policy?
His policy excludes death while on active military service.
How are Social Security benefits determined?
How long a covered worker has worked throughout their life
The ___________ approach calculates the amount of money a person is expected to earn over their lifetime to determine the face amount of life insurance needed, thereby placing a dollar value on the life of an individual.
Human life value
Of the following, who must explain the reason for premium increases to a life insurance applicant?
The agent
Jean's life insurance application was submitted on May 18, without the initial premium, and the insurer requires a medical examination. The examination is completed on May 22, and the policy is issued, rated, on May 25. The agent delivers the policy on May 27. When is coverage effective?
May 27, after the statement of good health is signed, and the initial premium is paid.
Part II of the life insurance application includes:
Medical Information
A producer gave a prospective client for a long-term care policy a visual presentation of the principal benefits of a policy. Although he mentioned that it had 'the usual' conditions, he did not include those in his presentation. The producer was engaging in:
Misrepresentation
Leo, a producer, sat down with a prospective client to discuss a long-term care policy. He used a computer program to outline and emphasize his remarks. The visual presentation contained the principal benefits of the policy he was trying to sell. Although he mentioned that it also had, the usual, conditions, he did not include those in his visual presentation or specify what they were. The producer was engaging in:
Misrepresentation
Which policy is a combination of whole life and convertible term, and has lower premiums in early policy years and higher premiums in later years?
Modified whole
Which of the following is not used to calculate the premium for life insurance contracts?
Morbidity
Which of the following would not be used to determine the premium rate for a life insurance policy?
Morbidity
The Guaranteed Insurability Rider, or GIR, allows the insured to buy:
More insurance coverage at specified points in the future, without proof of insurability
Net single premium is:
Mortality - Interest
Which of the following best describes the tool underwriters use to determine the rate at which a group of people die?
Mortality table
What type of insurance is specifically designed for someone who wants to pay-off their house in the event of their death?
Mortgage life insurance
Noncontributory plans:
Must have 100% participation
Contributory plans:
Must have 75% participation
The acronym NAIC stands for:
National Association of Insurance Commissioners
Which of the following is a guarantee that is required by law to be a part of life insurance polices that build cash value?
Nonforfeiture option
which of the following best describes the MIB?
Nonprofit trade organization that supplies insurability information to member companies
A policy loan on a whole life policy is:
Not taxable
For replacement transactions, an insurance producer's duties include all of the following, EXCEPT:
Notify existing insurers of policies to be replaced
Social Security is also referred to as:
OASDI
What are the basic elements of a legal contract?
Offer, acceptance, consideration, competent parties and legal purpose
Life insurance policy illustrations must contain all of the following, EXCEPT:
Only the guaranteed policy elements
This dividend option provides additional permanent coverage:
Paid-up additions
When setting up a policy, the policyholder chooses how he/she wants the benefits to be paid when the policy matures. Which of the following is not a settlement option available to most policyholders?
Paid-up additions option
Mutual insurers are also called:
Participating
What must a broker licensee do to keep their license in force?
Pay annual rental fee
Marcella purchases a modified life insurance policy at the age of 31. Thinking she could get a slightly better rate on her policy, she lists her age as 21. If the insurance company discovers the error upon Marcella's death, what action will the insurance company take?
Pay the death benefit based on Marcellas actual age
A nonqualified plan:
Permits discrimination in favor of certain employees.
Mary and Philip are married. Philip named Mary as the primary beneficiary of his life insurance policy. His children from a prior marriage are contingent beneficiaries. Under the Uniform Simultaneous Death Act, who will receive the death benefit if Mary and Philip are in a car accident and there is no evidence of who died first?
Philips children from his prior marriage.
If required by the insurer, the statement of good health must be collected by the producer at the time of:
Policy Delivery
Mutual insurers pay dividends to:
Policy Owners
Term insurance is categorized by all of the following, EXCEPT:
Policy cash value grows tax-deferred
A life insurance policy summary includes all of the following, EXCEPT:
Policy illustrations
If an irrevocable beneficiary is named on a life insurance policy, all of the following statements are true, EXCEPT:
Policy owners can borrow from cash value without consent.
The insured and the primary beneficiary are killed in a car accident. Which of the following is true according to the Uniform Simultaneous Death Act?
Policy proceeds are paid as if the primary beneficiary died first.
which of the following is the consideration an insured pays for insurance coverage?
Premium
Laura's life insurance application was submitted on September 16, without the initial premium, and the insurer requires a medical examination. The medical examination was completed on September 23, and the policy was issued, rated, on September 28. The agent delivers the policy on September 29. When is coverage effective?
September 29, after the statement of good health is signed, and the initial premium is paid.
Serena dies 15 days after her group life insurance coverage is terminated. She did not apply for individual coverage. Which of the following is true?
Serena's beneficiary will receive the full death benefit.
How benefits are paid to a beneficiary upon death in a life policy is a:
Settlement option
Stock insurers pay dividends to:
Shareholders
All of the following are true regarding the period certain life insurance settlement option, EXCEPT:
Shorter payment periods result in lower payments.
Which of the following best describes a life insurance policy in which the proposed insured is not required to undergo a medical examination?
Simplified Issue
In North Carolina, what is attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company?
Solicit
Which of the following prevents creditors from seizing life insurance policy proceeds as long as there is at least one living named beneficiary, excluding the insured's estate?
Spendthrift clause
Julie applies for a health insurance policy. Her consideration consists of:
Statements made on the application and initial premium
Which of the following is not a way that an endowment policy can mature?
Surrender of cash value
Gerry forgets to pay his life insurance premium, and the policy lapses. If he is within the reinstatement period and decides to reinstate his policy, he will be required to take all of the following actions, EXCEPT:
Surrender or cancel the policy within 10 years of the reinstatement date
Which policy pays a death benefit only upon the death of the last person insured?
Survivorship life policy
Employer-paid premiums used to fund group life insurance for the benefit of employees are:
Tax-deductible as a business expense
Fred, the producer realizes that the prospective client, Barney, omitted information about a prior illness. What should Fred do?
Tell the prospective client that a claim might be rejected later due to the omission.
Terry realizes that the client left off information about a prior illness. What should the he do?
Tell the prospective client that a claim might be rejected later due to the omission.
No agent may place a policy of insurance with any insurer unless the agent has a current appointment as agent for the insurer, or:
Temporary License
If the interest of insureds or the public are endangered, the Commissioner may revoke a:
Temporary license
What are the two major types of life insurance?
Term and whole
Valerie is looking at types of insurance to enhance her retirement. Which of the following should she NOT consider in planning her retirement?
Term insurance
All of the following characterize term life insurance, EXCEPT:
Term life insurance provides living benefits (cash accrual).
All of the following statements regarding key person insurance are true, EXCEPT:
Th key employee is the policy owner and pays the premiums, the company is the beneficiary
What happens when the cash value of a life insurance policy equals the face value?
Th policy endows
Because variable contracts are equity products, they are subject to various regulations. Which of the following applies to variable contracts?
The 12% rule
Who administers the National Do Not Call Registry?
The Federal Trade Commission
What happens if a vacancy occurs during the North Carolina Insurance Commissioner's term?
The Governor fills the position.
An individual signed an application for a $100,000 life insurance policy and paid the first premium on January 1. The agent issued an insurability receipt. A week later, the required medical examination proves the person insurable. If the person dies before the insurer approves the application:
The coverage will be retroactively effective
Which of the following best describes option 1 under a universal life policy?
The death benefit is a level benefit.
Angela took out a $2,000 policy loan from her whole life insurance policy. The policy face amount is $200,000. If Angela does not repay the loan, how will the death benefit be affected?
The death benefit will be decreased by $2,000 plus interest.
If an insured becomes permanently and totally disabled, a waiver of premium rider on their life insurance contract would allow coverage to remain in force, without payment of premiums, during the period of the disability. Which of the following is not true about a waiver of premium rider?
The disability must always occur prior to age 75.
Which of the following is false regarding eligibility for Social Security disability benefits?
The disability must have lasted or will last for at least 6 full months or be expected to end in death.
Who pays tax on personal life insurance given as a gift?
The gift-giver
Susan has just purchased a life insurance policy. Coverage becomes effective when:
The initial premium is paid, and the policy is delivered.
Matthew has recently purchased a variable life insurance policy. In reading his prospectus, he sees that the various accounts have the same managers as some of the mutual funds he owns. Matthew should understand which of the following:
The insurance company maintains separate accounts for each investment and they are not co-mingled with other assets.
A broker represents:
The insured
Insurance applications require a signature from all of the following EXCEPT:
The insurer
which of the following best describes the automatic premium loan provision of a life insurance policy?
The insurer will automatically use the policy cash value to pay an overdue premium.
All of the following are true regarding the fixed-amount installment life insurance settlement option, EXCEPT:
The larger the payment amount, the longer time period payments will be received.
Which of the following will exempt a licensee from needing to complete the continuing education courses requirement?
The licensee is at least 65 years old.
All of the following are true regarding purchase of personal life insurance for charity, EXCEPT:
The person purchasing life insurance for charity must have insurable interest in the lives of the charity's members.
Which of the following is true with regards to a Variable Universal life policy?
The policy owner controls the investment choices and the premium amounts
All of the following are reasons the face amount of a life insurance policy may be subject to tax, EXCEPT:
The policy proceeds are paid out in a lump-sum.
What happens when a universal life policyholder pays the target premium?
The policy will resemble whole life insurance.
All of the following are true concerning Interest Sensitive Whole Life (ISWL), EXCEPT:
The policyholder will always know the amount of cash value available.
All life policies require that some sort of beneficiary be named. Usually it is a person, but it can also be an estate, trust, charity, church, or a company. A beneficiary that can be changed at any time is a revocable beneficiary. An irrevocable beneficiary, however, cannot be changed so easily. All of the following statements are true about irrevocable beneficiaries, EXCEPT:
The policyowner retains the right to borrow against the policy.
Which of the following is not a characteristic of decreasing term life insurance?
The premium decreases to zero by the end of the policy period.
All of the following are advantages of whole life insurance, EXCEPT:
The premium-paying period may extend beyond the income-earning years.
There are different kinds of beneficiaries in a life policy. When Alice dies, the death benefit will be paid to Walter. If Walter dies before Alice, the benefit would go to Alexander. Which of the following statements is true?
The primary beneficiary is Walter and Alexander is the contingent beneficiary.
Which policy has fixed premiums, a guaranteed minimum death benefit and nonguaranteed cash values?
Variable whole life
A fixed period option pays policy proceeds in equal installments over a period of months or years. Which of the following is NOT considered when determining the amount of the installment?
The relationship of the beneficiary to the insured
Which of the following best describes the return of premium rider
The return of premium rider allows a whole life policy's cash value to be included in the death benefit.
Annuities are defined as:
The systematic liquidation of an estate
After looking at his options, Randy decided on a single premium whole life policy. What is an advantage of this type of policy?
The total premium is lower.
In life and health insurance, a persons greatest asset is:
Their earning power
After the 5-month waiting period, Social Security disability benefits are payable to the disabled covered worker in the amount of:
Their total PIA
All of the following are characteristics of qualified retirement plans, EXCEPT:
There are two types of qualified plans
The payor rider is sometimes added to a life insurance contract on a juvenile. The purpose of the rider is to make sure that the coverage on the juvenile does not lapse if the adult (the person responsible for paying premiums) becomes disabled or dies. Which of the following is not true about the payor rider?
There is no added premium for this rider
What happens if a person reports an incidence of insurance fraud, without actual malice, and the information is proven to be false?
They are not subject to civil liability.
Which of the following is generally true regarding premiums for individually-purchased life insurance and annuities?
They are not tax-deductible
Why are whole life policies more expensive than some other insurance options?
They must cover cash values, net insurance and mortality costs, as well as expenses.
Insurance agent Margaret receives life insurance applications from Tim and Tom, who are identical twins, and are each applying for the exact same type of policy with the same face amount. The insurance company issues the policies as applied for, but charges Tom a 15% higher premium. Which of the following best explains the higher premium charged to Tom?
Tom's risk classification
How long is the suicide clause typically in effect?
Two years from the policy effective date
The employee of the insurer assigns risk categories to applicants:
Underwritter
What policy can be described as annual renewable term with a cash value account?
Universal Life
When must insurable interest be shown for a life insurance policy?
Upon policy application
Which of the following policies allows the policy owner to buy term and direct the investments made in the cash value account?
Variable Universal life
A separate account is a part of which type policies?
Variable life
Gerald wants a life insurance policy in which he can choose the investment vehicle. Which policy would you recommend to him?
Variable life
Which life policy offers the owner the opportunity to invest in products such as money -market funds, long -term bonds and the stock market?
Variable life
Limited line credit insurance includes all the following, EXCEPT:
Variable life insurance
If a policyowner does not want to have all investment risk, which policy is not an appropriate option?
Variable universal life
As Howard was filling out his life insurance application, he questioned whom he should name as his primary and contingent (or secondary) beneficiaries. He decided to name his wife Helena as the primary beneficiary, and his son Collin as the contingent beneficiary. What is the most likely circumstance for Collin to receive the benefits of Howard's policy?
When Howard dies, Helena has already passed away
All of the following statements are true regarding the taxation of personal life insurance used for charity, EXCEPT:
When a charity is made a beneficiary of a personal life insurance policy, premiums are tax-deductible.
The agent must provide the buyer's guide to the applicant:
When the policy is delivered
Coverage is effective:
With collection of the initial premium, approval of the application, policy issuance and delivery
When a life insurance policy becomes a MEC, what are the tax consequences?
Withdrawals and policy loans are taxed as ordinary income.
How soon must an insurer file an appointment notice with the Commissioner after appointing an agent?
Within 15 days after the first insurance application is submitted
Which of the following statements regarding the amount of each annuity payment is true?
Women typically receive lower annuity payments.
An unlicensed person who solicits or negotiates insurance is considered:
a agent
Insurance policies are written on a "take it or leave" basis, which makes them:
a conditional contract
Timothy has a plan that provides coverage for life, but the premiums are not due beyond age 65. It has guaranteed premium, accumulates cash value and the coverage will never decrease. Timothy has purchased:
a limited payment life plan
The principal sum of a AD&D rider attached to a life insurance policy pays:
a principle sum if the insured loses both arms
What is a transaction in which a new policy or contract is to be purchased if an existing policy or contract has been lapsed, forfeited, or surrendered?
a replacement
All of the following are valid insurable interest scenarios, EXCEPT:
a women and her best friend
Group policies must define all the following, EXCEPT:
accidental sickness
The phase during which premiums are paid into the annuity is the:
accumulation phase
Premiums for a joint and survivor life annuity are based on the annuitants':
ages and sex
A long-term care rider is a provision that can be added to a cash value life insurance policy. If the insured becomes confined to a nursing home, this rider would reimburse health care expenses. Certain optional benefits may also be provided such as:
all of the above
Daniel has a disability income rider on his life policy. With a disability income rider:
all of the above
Gail has no children and has decided to make a gift of her life insurance to her alma mater. This type of assignment is voluntary and also usually absolute and complete. Specifics of this type of assignment include:
all of the above
In order to obtain fully insured status, a covered worker must accrue one quarter of coverage each calendar year after the age of 21 for a total of 40 quarters and minimum of six quarters, upon the earliest of:
all of the above
No life insurance company doing business in North Carolina may make, issue, or circulate, any illustration, circular, or statement of any sort misrepresenting:
all of the above
One of the most common types of life insurance is the whole life insurance policy. Which of the following is a typical characteristic of a whole life policy?
all of the above
The Clark family's insurance policy lapsed when Mr. Clark was out of work. The policy was not surrendered for its cash value. Under what conditions can the policy be reinstated?
all of the above
Tim has added an accidental death rider to his life insurance contract. He knows that he will be charged an additional premium for this coverage, but because he lives in a dangerous neighborhood, he thinks the coverage is a good idea. For which of the following will the insurer exclude the payment of benefits?
all of the above
Which of the following correctly describes Social Security survivors benefits for a covered worker who is fully insured?
all of the above
In connection with a replacement transaction, the producer will leave with the applicant at the time an application for a new policy or contract is completed the original or a copy of which of the following?
all sale material
How long is the reduction in Social Security retirement benefits effective for a person who retires early?
all throughtout retirement
an alien insurer is:
an insurance company conducting business in a foreign country.
A domestic Insurer is:
an insurance company conducting business in the states in which it is incorporated.
Premium payments for life insurance are made in advance. Typically they are paid to the insurer's home office or to the agent. The premium payment mode defines the timing of the payments. Usually the payment mode with the best economy is:
annually
The person who receives annuity payments is the:
annuitant
Which life insurance rider affecting the policy's death benefit protects against the chance of depleting income during prolonged life?
annuity rider
What accounting unit is used during the annuity phase of a variable annuity?
annuity unit