Life
how many hours per year must a person work to be eligible for a Keogh Plan
1000
The required privacy disclosure notice must be provided by insurer to current policyholders at least once in any period of
12 months
insurance companies are required to provide proof of loss forms to the claimant within how many days after receipt of notice of loss
15
before the commissioner will issue a broker's license, the licensee must obtain a bond for at least
15,000
unless exempt, individuals applying for an insurance agent's license must first complete an approved course of study of how many hours
20
after a claim has been settled, insurance companies are required to keep records pertaining to the claim for at-least how many years
5 years
what is another name for interest-sensitive whole life insurance
Current assumption life
An agent selling variable annuities must be registered with
FINRA
Policy owned by breadwinner who is covered with permanent insurance with decreasing term insurance in the form of a rider
Family Income Policy
A young father would like a life insurance policy to provide coverage for all five family members at the lowest cost. Which type of policy would he most likely buy?
Family protection policy
an insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming
Foreign
how do taxes affect money borrowed from the cash value
Money borrowed from the cash value is not taxable
what are policy dividends
Return of unused premiums
What entities regulate variable life policies
The SEC, The Insurance Department, and the Federal government.
which policy would have an IRS required corridor or gap between the cash value and the death benefit
Universal Life - Option A
how are buy-sell agreements normally funded
a life insurance policy
if someone is insured under a life insurance policy with the accelerated benefits rider what would happen in regards to taxation of the accelerated benefits
a portion of the benefit up to a limit is tax free, the rest is taxable income
Stating that an insurer's policies are guaranteed by the existence of the Life and Health Guaranty Association is
an unfair trade practice
When an annuity is written, whose life expectancy is taken into account?
annuitant
who assumes the risk in variable annuities
annuitant
what type of insurance policy may be used to fund a buy-sell agreement
any form
the commissioner reports any violations of insurance laws and regulations to the
attorney general
a person who knowingly obtains information about an individual from an agent or the insurer under false pretenses has committed a(n)
class 1 misdemeanor
A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases an insurance policy from the bank in the amount of the loan. This is an example of
coercion
what rider adjusts the face amount of a policy to maintain the relationship of the face amount and increases in the cost of living
cost of living rider
what type of insurance policy is most commonly used in credit life insurance
decreasing term
with the reduction of premium dividend option, how is the dividend used
dividend is applied to the next year's premium (reduces next years premium)
in which of the following methods of changing a beneficiary does the policyowner send the contract to the home office of the insurer for approval and change
endorsement method
two main categories of policy loan interest rates
fixed or variable
what type of premium do both universal life and variable universal life policies have
flexible
When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer?
foreign
whats an eligibility requirement for all Social Security Disability income benefits
have attained fully insured status
when is a pretexted interview permissible
if the insurer suspects criminal activity and fraud
a return of premium term life policy is written as what type of term coverage?
increasing
A life insurance policy has a legal purpose if both of which of the following elements exist
insurable interest and consent
what ultimately determines the interest rates paid to the owner of a fixed annuity
insurer's guaranteed minimum rate of interest
what is used to determine interest rates on variable products
interest rate index
why is an equity indexed annuity considered to be a fixed annuity
it has a guaranteed minimum interest rate
what can be changed by the policy owner in an adjustable life policy
length of coverage, amount of insurance, the premium
variable whole life insurance is based on what type of premium
level fixed
which two terms are associated directly with the premium
level or flexible
When an insurance producer conducts business under any name other than the producer's legal name, they must notify the commissioner when?
notify the commissioner before using the assumed name
the dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as
one-year term option
which option for universal life allows beneficiary to collect both the death benefit and cash value upon the death of insured
option B
in regards to taxation, how are premiums looked at in a key person insurance policy
premiums are not tax deductible as a business expense
the paid-up addition option uses the dividend to
purchase a smaller amount of the same type of insurance as the original size
Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as
rebating
what option would allow policyowner to use dividends to help pay for next premium
reduction of premium
where are premiums invested with respect to variable products
separate account, like a mutual fund
who bears all investment risk in a fixed annuity
the insurance company
who bears all of the investment risk in a fixed annuity
the insurance company
insurance agents licensed in this state must complete continuing education every 2 years by
the last day of the licensee's birth month
what happens if a deferred annuity is surrendered before the annuitization period
the owner will receive the surrender value of the annuity
the commissioner is empowered to examine the records of any person transacting insurance in the state as an agency, an agent or broker of record. If the commissioner does examine a person, the expense of that examination will be paid by
the person examined
what happens if an insured continually uses the automatic premium loan option to pay the policy premium
the policy will terminate when the cash value is reduced to nothing
Under a SIMPLE plan, what applies regarding taxation on both contributions and earnings?
they are taxed deferred until withdrawn
The insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy
unilateral
what kind of policy allows withdrawals or partial surrenders
universal life
between variable universal life and variable who life, which has a guaranteed death benefit
variable whole life