Lex

Under what circumstances will the contingent beneficiary receive the death benefit? A If designated by the insured B If designated by the primary beneficiary C If the primary beneficiary dies before the insured D If the tertiary beneficiary dies before the insured

C? If the primary beneficiary dies before the insured

Which of the following is the primary source of information that an insurer uses to evaluate an insured's risk for life insurance? A The law of large numbers B Agent's Report C Insurance application D Risk analysis

Insurance application

Which dividend option will increase the death benefit? A) Extented term B) reduced paid up C) paid up additions D) Accumulations

C) Paid up additions

A licensed producer moved from an apartment to a house on January 1st. By what date must the producer notify the Commissioner of the change in address? A By March 31st B By January 10th C By January 31st D By January 14th

B By January 10th

When an agent delivered as insurance policy to the insured, he collected the initial premium, as well as a document verifying that the insured had not had any injuries or illness since the application date. What is this document called? A) statement of insurability B) insuring agreement C) insurability clause D) Statment of good health

Statement of good health

To be valid, an insurance policy must have all of the following EXCEPT A Consideration B Offer C Countersignature D Acceptance

C countersignature

Which of the following indicates the person upon whose life the annuity income amount is determined? A Owner B Insured C Annuitant D Beneficiary

C) Annuitant

Amount the applicants in the same class and life expectancy, which of the following factors can be used to influence premium rates? A) Marital status B) Race C) occupation D) ancestry

C) occupation

According to the Fair Credit Reporting Act, all of the following statements are true EXCEPT A If an applicant is declined for an insurance policy, he or she has no right to know what was in the report. B It protects consumers against the circulation of inaccurate information. C It ensures that consumer reporting agencies are fair in their treatment of consumers. D Investigative consumer reports can be used to obtain information on the applicant's character and reputation.

A If an applicant is declined for an insurance policy, he or she has no right to know what was in the report

Which method of dealing with risks is applied when insurance is purchased? A) Transfer B) Sharing C) Avoidance D) Reduction

A) Transfer

For a contract to be enforceable by law, the purpose of the contract must be A For the benefit of the general public. B Of pure intent. C Legal and not against public policy. D For financial gain.

A? For the benefit of the general public

According to the life insurance replacement regulations, which of the following would be an example of policy replacement? A A lapsed policy is reinstated within a specific timeframe. B A policy is reissued with a reduction in cash value. C A term policy expires, and the insured buys another term life policy. D Term insurance is changed to a Whole Life policy.

B A policy is reissued with a reduction in cash value

While completing a life insurance application the applicant realizes that she should have answered an earlier question differently. What should the agent do to make the necessary change? A Nothing, only a company officer can make any changes B Cross out the incorrect information, write in the correct answer, and have the applicant initial the change C White-out the information, make the change, and have the applicant initial the change D Cross out the incorrect information and provide an explanation to the insurance company

B cross out the incorrect information, write in the correct answer and have the applicant initial the change

All of the following information needs to be included on an application for life insurance EXCEPT A Health insurance policies in force. B Life insurance with other insurers. C The agent's statement, if applicable. D Medical information about the applicant.

D Medical information about the applicant

Which of the following elements of an insurance contract requires payment of premium? A Consideration B Legal purpose C Competent parties D Offer and acceptance

A? consideration

An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as A Fraud. B Concealment. C Misrepresentation. D Twisting.

D Twisting

How will life insurance proceeds that are paid as a lump sum received by the beneficiary? A As tax-deductible income B Free of federal income taxation C Taxed as ordinary income D Taxed as investment income

C Taxed as ordinary income

According to continuation of coverage provision in group policies, how many days does a terminated employee have to elect coverage? A 10 days B 14 days C 30 days D 60 days

60 days

Which risk classification is representative of the majority of people in a certain age group and with similar lifestyles? A Declined B Preferred C Standard D Substandard

Standard

A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy will A Reduce to the pre-surrender value. B Continue to increase. C Remain the same. D Decrease over time.

continue to increase

Which of the following terms refers to the portion of a loss that is paid by the insured? A) loss B) exclusion C) split limit D) Deductible

Deductible

How many CE credits must be completed within each licensing period? A 15 B 20 C 24 D 40

24

In contrasting stock insurers with mutual insurers, which statement is true? A Nonparticipating policies can pay out dividends to the policyholders. B Mutual insurers are owned by the shareholders and issue participating policies. C Stock insurers are owned by the shareholders and issue nonparticipating policies. D Stock dividends are tax free while policy dividends are taxable.

A Nonparticipating policies can pay out dividends to the policyholders

Which of the following would be likely to establish a SEP? A Low-income individuals and families B Small employers C Military personnel D The elderly

B Small employers

An agent tells an insured that if he replaces his current insurance policy with a newer one, his dividends will be higher and his premiums will be slightly lower. The policy, however, would not offer either one of these things. What type of misrepresentation is being committed? A Replacement B Twisting C Rebating D Distorting

B Twisting

An applicant for a disability insurance policy has a heart condition of which they are unaware and therefore they answer no to the question pertaining to heart problems on their application. There answer is considered to be a A) Fraudulent answer B) Representation C) Warrenty D) Concealment

B) Representation

An annuitant pays the annuity premium on the 14th of each month. Which of the following best describes this arrangement? A) single B) level C) flexible D) lump sum

B) level

How do premiums in variable universal life policies vary from those in variable whole life policies? A Premiums automatically increase over the life of the policy. B Premiums are flexible. C Premiums are level. D Premiums automatically decrease over the life of the policy.

B? Premiums are flexible

An insured bought an insurance policy that requires him to pay $150 in premiums on the 15th of each month. He then takes an extended vacation and forgets to pay the premium. Ten days later, his policy is still in effect and has not lapsed. Which policy provision allowed for this? A Incontestability B Grace period C Waiver of premium D Automatic premium loan

Grace period

When the owner of a participating whole life policy uses the dividend to provide more life insurance coverage, which of the following dividend options is being used? A Fixed amount B Reduced paid up C Paid-up additions D Reduce the premium

C Paid up additions

Under which of the following conditions would life insurance proceeds be taxable by the federal government? A If collaterally assigned to a lender B If taken as a lump sum C If paid to the policyowner D If there is a transfer for value

D) if there is a transfer for value

Life Insurance and Annuity Replacement regulation applies to all of the following types of life products EXCEPT A Individual deferred annuity. B Group life. C Equity indexed life. D Whole life.

D? Whole life

What is the cost of coverage based on for group life insurance? A The insureds' individual ages B The average age and the ratio of men to women C The average age D The ratio of men to women

B The average age and the ratio of men to women

How long is the grace period for an individual life insurance policy? A) 3 months B) 1 month C) 2 Weeks D) 7 to 10 business days

B) 1 month

Which of the following types of insurance products would be appropriate for an individual with a low income and high insurance needs? A Term insurance B Straight whole life C Paid-up at 65 insurance D A variable annuity

A Term insurance

A loss resulting from which of the following would qualify for the accidental death rider coverage? A A hazardous hobby B An automobile accident C A health condition D A disability

B) an automobile accident

A social security disability must be expected to last for at least how many months in order for the person to qualify for disability benefits A) 9 B) 12 C) 3 D) 6

12

The Minnesota Life and Health Insurance Guaranty Association was created to protect all of the following EXCEPT A Insurers. B Policyowners. C Beneficiaries. D Insureds.

A insurers

Insurers CANNOT transact insurance in this state without a A Certificate of Authority. B Broker's license. C Certificate of Insurance. D Letter of Clearance.

A certificate of authority

In the event an annuitant dies during the accumulation period, and there is a beneficiary named in the annuity, annuity benefits would be paid to the A) Annuitants estate B next of kin C) insurance company D) named beneficiary

A) Annuitants estate

How many days' notice must an insurer provide to an insured regarding the lapse of a policy due to outstanding loans? A 7 days B 10 days C 15 days D 30 days

30 days

In order to reinstate a life insurance policy the insured must do all of the following EXCEPT A Pay next year's premium in advance. B Pay back premiums. C Pay any interest due on back premiums. D Repay any outstanding loans and interest.

D? Repay any outstanding loans and interest

Decreasing term insurance is often used to A) cover a mortgage B) Liquidate an estate C) Build up cash value for retirement D) pay estate taxes

Cover a mortgage

Which of the following criminal activities would be sufficient violation to warrant rejection, revocation, or suspension of an insurance producer's license? A Forgery B Speeding in an automobile C Trespassing through a neighbor's yard D Public drunkenness

A Forgery

What is the maximum loan amount a policyowner may withdrawal from a variable universal life insurance policy? A An amount equal to the first year of premium payments B An amount not exceeding the cash value C An amount up to the face amount of the policy D Nothing; loans are not allowed under variable universal life

B An amount not exceeding the cash value

An Equity Indexed Annuity will grow based upon A A rate of interest determined by the banking system. B Performance of a recognized index. C Performance in a separate account. D Current interest rates.

B Performance in a separate account

In a variable life insurance policy, all of the following assets are held in the insurance company's general account EXCEPT A Face amount reserves. B Incidental benefit amounts. C Cash surrender values. D Mortality reserves.

Cash surrender values

An insurance form that requires a claim to be made during the policy period if it is to be covered by the policy is called a A Binder. B Claims-made form. C Discovery form. D Policy period form.

Claims made form

Policy loan requests, except for loan requests for payment of due premiums, may be deferred for a period of up to A 30 days. B 90 days. C 6 months. D 9 months.

6 months

When producers change the address of their residence or office, the Commissioner must be notified within A 60 days. B 10 days. C 15 days. D 30 days.

D 30 days

Which of the following policy provisions is a general statement identifying the insured, the insurance company, and the types of loss that will be covered? A) Assignment B) Ownership C) Insuring clause D) Entire contract

C) insuring clause

What does an annuity protect the annuitant against? A Estate taxes B The financial impact caused by premature death C Living longer than expected D Leaving beneficiaries without income

C Living longer than expected