Life Exam
hen the communal suspects that anyone has engage in deceptive acts, the commissioner will give that person a statement of charges and notice of hearing to be held within
15 days
How many days does the producer have to remit all the premiums to the insurer
30 days
If a consumer requests additional information concerning an Investigative Consumer Report, how long does the insurer or reporting agency have to comply?
5 days
How long is an open enrollment period for medicare supplement policies
6 months
If a beneficiary wants a guarantee that benefits paid from principal and interest wold be paid for a period of 10 yeas before being exhausted, which settlement option should the benefice select
Fixed period
When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy
It is reduced to the amount of what the cash value would buy as a single premium
Nonforfeiture values guarantee which of the following for the policyowner?
That the cash value will not be lost
Which of the following entities regulates variable life policies?
The SEC
Consideration
The binding force in a contract that requires something of value to be exchanged for the transfer of risk
What is a simple plane
a plan that is available to small business no more than 100 employees
Automatic premium loan
a special typeof loan that prevents the unintentional lapse of a policy
warranty
absolutely true statement upon which the valid of the insurance policy depends
Aleatory Contract
an exchange of unequal amounts or values
Under which of the following circumstances would an insurer pay accelerated benefits
an insured is diagnosed with cancer and needs help paying for her medical treatment
In life insurance, producers are permitted to share or split commissions proving
both are properly licensed for the line of insurance
Which of the following statements concerning buy sell agreements is true
buy sell agreements are normally funded with a life insurance policy
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following ?
consideration
straight life
continuous premium whole life, charges a level annual premium for the lifetime of the insured and provides a level, guaranteed death benefit. it build cash value. straight life has the lowest annual premium among whole life policies.
Contracts that are prepared by one part and submitted to the there party on a take it or leave it basic are classified as
contracts of adhesion
Which nonforfeiture option has the highest amount of insurance protection
extended term
Both Universal Life and Variable life have a
flexible premium
Which of the following riders would not increase the premium for policy owner
impairment rider
During partial withdrawal from a universal life policy, which portion will b taxed
interest
single premium whole life
one time lump sum premium payment to provide a level death benefit to the maturity of the policy. Single premium policies generate immediate cash value due to the size of the lump sum premium payment.
which of the following riders would not cause a death benefit to increase?
payor benefit rider
Which of the following individuals must have insurable interest
policy owner
Insuring cause
sets forth the basic agreement between the insurer and the insured
Who is the owner and who is the beneficiary on a key personal life insurance policy
the employer is the owner and beneficiary
All of the following entitles regulate variable life policies except
the guaranty association
Which of the following determines the cash value of a variable life policy
the performance of the policy portfolio
Who can request changes in premium payments, face value, loans, and policy loans
the policy owner
If an insured continually used the automatic premium loan to pay the policy premium
the policy will terminate when the cash value is reduced to nothing
In a group health policy, a probationary period is intended for people
who joined the group after the effective date
All of the following are personal uses of life insurance EXCEPT
Buy-Sell agreement
Which is true about the cash surrender nonforfeiture option
Funds exceeding the premium paid are table as ordinary income
At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called
Guaranteed insurability
What is another term for the accumulation period of an annuity?
Pay-in period
Which is the appropriate action by the insurer if a prospective insured submitted an incomplete application?
Return the application to the applicant for completion
Which of the following is true for both equity indexed annuities and fixed annuities
They have a guaranteed minimum interest rate
Buy-Sell agreement
a legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled
Accidental death benefits
a policy rider that stated that the cause of death will be analyzed to determine if it complies with the policy description of accidental death
What does liquid refer to in a life insurance policy
cash values can be borrowed at any time
When a life insured is cancelled and the insured has selected the extended term nonforfeiture option the cash value will be used to purchase term insurance the has a face amount
equal to the original policy for as long a period of time that the cash values will purchase
when a life insurance is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount
equal to the original policy for as long a period of time the cash values will purchase
Which of the following statements is true about a policy assignment
it transfers rights of ownership from the owner to another person
If the insured pays $100 premium for every month with insurance coterage yet the insurer promises to pay $10,000 for the cover losses what characteristics of an insurance contract is as described
Aleatory
What document describes an insureds medical history including diagnoses and treatments?
Attending Physicians Statement
Which of the following reports will provide the underwriter with the information about an insurance applicants credit
Consumer repot
In terms of parties to a contract, which of the following does not describe a competent party
The person must not be under the influence of drugs or alcohol
Assignment
The transfer of ownership rights of a life insurance policy form one person to another
When would a 20 pay whole life policy endow
When would a 20 pay whole life policy endow? a limited pay whole life policy would endows for the face amount at age 100. the premium is completely paid off in 20 years.
Reinstatement provision
allows a lapse policy to be put back in force, usually 3 years after the policy has lapsed
term life insurance
temporary protection that lasts only for a specified period of time. if the insured dies during the specified timeframe, the policy pays the death benefit to the beneficiaries. Term policies provide the greatest amount of coverage for the lowest premiums. It is pure death protection
which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit.
universal life aoption A (level death benefit option) policy must maintain a specified "corridor" or gap between the cash value and the death benefit, as required by the IRS
Which of the following is NOT allowed in credit life insurance?
Creditor requiring that a debtor buys insurance from a certain insurer
Which of the following criminal activities would be sufficient violation to warrant rejection, revocation or suspension of an insurance producers license
forgery
Free look
provision allows the policy owner 10 days from receipt to look over the policy and if dissatisfied for any reason, return it for a full refund of premium
All of the following are true about variable products except
the premiums are invested in the insurers general account
In respect to the consideration clause, which of the following is consideration on the part of the insurer
Promising to pay in accordance with he contract terms
The full premium was submitted with the application for life insurance, and the policy was issued two weeks laster as requested, When does the policy coverage become effective?
As of the application date
limited pay whole life
specifies a set number of years during which the policyowner must pay premiums. After premium is paid up, the policy remains in force for the insureds lifetime. Limited pay policies have higher premiums than straight life policies because the premium payment period is condensed.
Which of the following best describes fixed-period settlement option
Both the principal and interest will be liquidated over a selected period of time
equity indexed annuities
seek higher returns
Entire contract provision
stipulates that the policy and a copy of the application, along with any riders or amendments constitute the entire contract
Which of the following is true regarding optional benefits with long term care policies
they are available for an additional premium
Which of the following information will be stated in the consideration clause of a life insurance policy
the amount of premium payment
the policyowner of an adjustable life policy wants to increase the death benefit. which of the following statements is correct regarding this change?
the death benefit can be increased by providing insurability
Which of the following is true regarding the annuity period
It may last for the lifetime of the annuitant
Upon policy delivery, the producer may be required to obtain any of the following except
signed waiver of premium
Which of the following types of policies allows the policy owner to skip premium payments provided that there is enough cash value in the policy to cover the premium amount
Universal Life
Which of the following when attached to a permanent life insurance policy allows the policy owner to customize the policy to provide an additional amount of temporary insurance of the insured, or allows amounts of temporary to cover other family members
Term rider
The law that protects consumers against the circulation of inaccurate or obsolete information is known as....
The fair credit reporting act
What would be included in the premium amount states in the insurance policy
Fees, charges, and any other consideration
All other factors being equal, wha would the premium be like in a survivorship life policy as compared to the premium in a joint life policy
lower
What is the other term for the cash payment settlement option
Lump sum
Unilateral contract
only one of the parties to the contract is legally bound to do anything
Accelerated benefits
riders attached to life insurance policies that allow death benefits to be used to cover nursing or convalescent home expenses.
In life insurance policy replacement, which of the following entitles is responsible for sending a letter notifying the policy owner of the right to receive information regarding the values of the existing policy
the existing insurer
All other factors being equal, the least expensive first-year premium payment is found in
Annually renewable term because it is the purest form of term insurance
