Life agent
The use of the words or symbols that are similar to which of the following entities is prohibited in life insurance advertisement
Federal government
A temporary license is normally valid for
90 days
In credit life insurance who is responsible for paying the policy premium
Borrower
Which of the following is the beneficiary in credit life insurance
creditor
Which of the following is NOT an example of a company's location of incorporation
Authorized
Which of the following persons is required to hold a producer license
A nonresident agent who negotiates insurance contracts
The medical information bureau is
A source of medical information to alert insurers to adverse medical history
In group life policies individual certificates are given to
Each insured persons
An illustration used in the scale of a life insurance policy must include a label stating
Life insurance illustration
Which of the following are social security benefits
Retirement, disability and survivors
If the agent fails to obtain an applicants signature on the insurance application, the agent must
Return the application to the applicant for signature
A spouse receives $5,000 a month until the principle and interest on her husband"s life insurance policy have been paid out. Which settlement option did this beneficiary choose?
a fixed amount
All of the following persons who don't have an employer-sponsored retirement plan would be eligible to set up contributions to a traditional IRA EXCEPT
Arlene age 72 a nurse
Which of the following terms refers to the transfer of some or all of the ownership rights of a life insurance policy from on individual to another
Transfer of value
Agents whose license has been revoked will not be able to receive another license in Texas for at least..
5 years
All of the following would be considered an insurance transaction EXCEPT
Obtaining an insurance license
How long is the grace period in group life policies issued in this state
31days
The number of credits required to obtain a fully insured status to receive social security benefits is
40
A printer has hired an advertising agency to design and edited advertisement brochures for an insurance company. Once the brochures are printed, who is responsible for the advertisements and their content
The insurance company
Generally, the premium paid for personal life insurance is?
not tax deductible
When a death claim is submitted, the insurer discovered that the insured understated her age on the application for a life policy. What will the insurer take?
pay a reduced death benefit based on the insured's actual age
In an insurance contract consideration refers to
Exchange of something of value by both parties
If the agent feels that there could be misrepresentation on the part of the applicant for insurance, what must the agent do?
Inform the insurance company
All of th following are nonforfeiture options in life insurance policies except
Automatic premium loans
The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called
Waiver of Premium
What is the minimum required number of continuing education credits in ethics every licensing period?
2 hours
Which of the following statements is true of both the fixed-period and fixed-amount
Both guarantee that the principal and interest will be fully paid out
A key-person insurance policy benefit will pay for which of the following
Cost of training a replacement
An insured submits the full premium along with a completed application, and the policy is issued 10 days later. When does the coverage begin?
Date of application
A life agents license must be renewed
Every 2 years on the anniversary date of issuance
A life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the
Incontestability clause
Which of the following is not a requirement of a qualified plan
It must be temporary
An agent who offers a cash reward to a prospect for buying a policy is guilty of
Rebating
An insurer who deliberately makes a malicious statement about another insurance company is guilty of an illegal trade practice called
defamation
How often must producers renew their licenses
every 2 years
What provision in a life insurance policy extends coverage beyond the premium due date
grace period
An insured in a group policy has misstated his age on the insurance application. As a result the insurer will most likely
Adjust the premium
What is the main responsibility of a company's underwriting unit?
Risk selection and classification
The commissioner of insurance is responsible for all the following actions EXCEPT
Setting premium rates
If a life insurance policy has an irrevocable beneficiary designation,
The beneficiary can only be changed with written permission of the beneficiary
Which of the following best describes the purpose of the USA PATRIOT Act with regards to the insurance industry?
To prevent terrorism activities through monitoring of financial transactions
The commissioner of insurance issues a cease and desist order and immediately receives a request for the charges to be reviewed in a hearing. Within how many days must the hearing be held?
10days
According to the limitations of lawsuits provision how many years does a claimant have to take legal action against the insurer
2 years
Who is considered a nonresident agent
An agent who resides in another state, but is licensed to write insurance in this state.
If a life policy does not pass the 7-pay test, that policy...
Becomes a Modified Endowment Contract
Credit life insurance is usually written as what type of policy
Decreasing term
Which provision of a life insurance policy states that the application is part of the contract
Entire Contract
Which of the following features allows an insurance policy to remain in force for a specific number of days beyond the premium due date
Grace period provision
Which of the following provisions prevents an insurer from denying a claim due to statements made on a life insurance application after the policy has been in force for a period of time
Incontestability
In an insurance transaction, which of the following does a licensed agent represent?
Insurer
All of th following are true regarding the guaranteed insurability rider except
It is available automatically, for no extra premium
Which of the following is true about the free-look period in a life insurance policy?
It starts when he policy is delivered
Th insured usually pays $1,200 annually for her life insurance premium. This year, she has accumulated $175 in dividends, and applied that to her next premium, reducing it to $1025. What dividend option has the insured chosen?
Reduction of premium
Which of the following is considered a field underwriter?
an agent
Which of the following would be the main source of underwriting information used by the company in the risk selection process?
application
Which of the following is NOT a standard exclusion in life insurance policies
disability
How many days does a visitor have to rescind a vatical settlement after receiving the proceeds
15 days
In an individual life insurance policy when must true nonforfeiture benefits begin
After 3 policy years
Over several years a policy owner paid $10,000 in premiums for his insurance policy. When he suffered a loss, the insurance company paid out $50,000 in benefits. What characteristics of an insurance contract does this describe?
Aleatory
With personal life insurance th lump-sum death benefit is received by the beneficiary
Income tax free
The advantage of qualified plans to employers is
Tax-deductible contributions
Which of the following arrangements allows someone living with a life threatening condition to sell an existing life insurance policy and use the proceeds before death
Viatical settlement
Which of the following insurance arrangements will be appropriate for a business purchasing life insurance on its general manager
Third party ownership
What is the term for an insured who enters into a vatical settlement
Viator
Representations are statements made by the applicant that are
Considered true to the best of the applicant's knowledge
Which of the following includes information regarding a persons credit, character, reputation, and habits
Consumer report
Under what circumstances will the contingent beneficiary receive the death benefit
If the primary beneficiary dies before the insured
When must insurable interest exist in life insurance?
Date of application
Which of the following is not true regarding policy loans
Money borrowed from the cash value is taxable.
What is the requirement for a number of employees is a simple plan?
No more than 100
What is the main purpose of requiring licenses for persons who transact insurance
To protect the general public
An employee quits his job and converts his group insurance to an individual policy. On which of the following will th premium for the individual policy be based?
Insurers attained age
The 10% early withdrawal penalty from an IRA can be waived for
Catastrophic medical expenses