Lex 3

All of the following are considerations in an insurance policy except

The promise to pay covered losses

A married couple purchased a life insurance policy on their newborn baby. They are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability. What loan should the agent recommend

Waiver of premium

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

Annuitants estate

An insured suffered a loss and notified her insurance company. The insurer must provide a claim from to the insured within

15 days

A temporary license in this state is valid for how many days?

180 days

An insurer must notify the consumer in writing that an investigation consumer repost has been requested, within how many days of the initial request?

3 days

Which provision may be added to a permanent life policy, at no cost, that insurers that the policy will not lapse so long as there is cash value?

Automatic Premium Loan option

If, after a hearing, it is determined that an insurer or producer is violating Minnesota insurance laws, the commissioner will issue

Cease and desist order

Which of the following losses would likely be covered under the accidental death rider?

Death caused by a head-on collision

The owner of a whole life policy with an accent also death rider intentionally kills himself after having the policy for 18 months. What is the insurance company's course of action?

Deny any payment of death benefit

An adjustable life policy can assume the form of

Either term insurance or permanent insurance

How often must producers in this state fulfill their continuing education requirement?

Every 2 years

All of the following information needs to be included on an application for life insurance except

Health insurance policies in force

Insurers are forbidden to do all of the following with their advertisements, except

Promote interest in insurance coverage

An annuity would normally be purchased by an individual who wants to

Provide income for retirement

All of the following are true of credit life except

The insured names the beneficiary

All of the following are general requirements of a qualified plan except

The plan must be temporary

Which of the following is true regarding premium in a 10 year level premium policy

The premium will remain level for 10 years

Life insurance and annuity replacement regulations applies to all of the following types of life products except

Whole life

If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan?

immediately

If a retirement plan or annuity is "qualified", this means

it satisfies IRS requirements for favorable tax treatment

When a producers change the address of their residence or office, the commissioner must be notified within

30 days

The entire contract includes all of the following except

Buyer's Guide

A group life insurance policy is issued to

Every eligible member of the group

An applicant may challenge information discovered as a result of an investigative consumer report under which of the following acts?

Fair Credit Reporting Act

If a soliciting producer suspects that there could be misrepresentation on the part of the applicant for insurance, what must the producer do?

Inform the insurance company

Which of the following provisions is usually found In Homeowners policies and provides a replacement cost settlement to policyholders who carry adequate insurance?

Insurance to value

According to the life insurance replacement regulations, which of the following would be an example of policy replacement?

A policy is reissued with a reduction in cash value

Which of the following best describes a rebate?

A producer returning part of her commission to her client, as an inducement to buy

Where are premiums from fixed annuities invested?

A general account A fixed annuity is characterized by a general account into which the purchase payments (premiums) are invested

Partners in a business want to make sure that if one of them were to pass away, their surviving family will recieve a fair value for their portion in the business. What a life insurance arrangement would be most suited for transitioning the business?

Buy-sell agreement

In a commercial auto coverage policy, which of the following coverage froms applies to automobiles transporting property for a commercial enterprise?

Motor Carrier

All of the following are advantages of a qualified retirement plan except

the income at retirement is tax free