Life Exams

What is the minimum free-look period for newly issued life insurance policies in the state?

10 days

W owns a policy in which she is covered as the bread-winner with permanent insurance and with decreasing term insurance in the form of a rider. What type of policy is this?

A Family Protection Policy

A tornado that destroys property would be an example of

A peril

the equity in an equity index annuity is linked to

An index like Standard & Poor's 500.

Which concept is associated with "exclusion ratio"

Annuities payments

When an annuity is written, whose life expectancy is taken into account?

Beneficiary

A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called?

Cost of living rider

Both Universal Life and Variable Universal Life have a

Flexible Premium

No person can act as an administrator in this state unless he or she

Hold a certificate of registration issued by the commissioner

An insurer received a claim on May 1st. On may 31th, the claim was approved in its entirety. By what sate can the claimant expect payment?

June 30th

When transacting business in this state an insurer formed under the laws of another country is known as a/an

Legal hazard

A person who does not lock the doors or does not repair leaks shows an indifferent attitude. This person presents what type of hazard?

Morale

The dividend option in which the policy owner uses dividends to purchase a term policy for one is referred as the

One-year term option

When may a presentation be withdrawn?

Prior to the insurance of the policy

The owner of a life insurance policy wish to name two beneficiaries for the policy proceeds. What will the soliciting insurance producer say?

The policy owner can specify the way proceeds are split in the policy.

How many hours of continuing education in ethics must agents complete each licensing term? a.) 3 b.) 5 c.) 10 d.) 12

a.) 3

All of the following are personal uses of life insurance EXPECT a.) Buy-sell agreement b.) Survivor protection c.) Estate creation d.) Cash accumulation.

a.) Buy-sell agreement

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 be most likely to buy? a.) Family (Protection policy) b.) Universal Life Policy c.) Family Income policy d.) Level term policy

a.) Family (Protection policy)

The price for insurance for each exposure unit is known as a.) Rate b.) Consideration c.) Insurable Interest d.) Premium

a.) Rate

In insurance, an offer is usually made when a.) The completed application is submitted b.) The insurer approves the application and revives the initial premium c.) The agent hands the policy to the policyholder d.) An agent explains a policy to potential applicant

a.) The completed application is submitted

which of the following statements regarding deferred compensation funds is INCORRECT? a.) They are usually qualified plans b.) They can be made with cash deposits to an annuity c.) They can be established by employers. d.) They generally provide additional retirement benefits

a.) They are usually qualified plans.

which of the following types of insurance policies is most commonly used in credit life insurance? a.) Equity indexed life b.) Decreasing term c.) Increasing term d.) Whole life

b.) Decreasing term

Which of the following would describe a legal document which would dictate who can buy a decreased partners share of a business and and for what amount a.) Key person agreement b.) Split dollar agreement c.) Buy-sell agreement d.) Profit and loss agreement

c.) Buy-sell agreement

Which statement regarding insurable risk is NOT correct? a.) the insurable risk needs to be statistically predictable b.) An insurable risk must involve a loss that is definite as to cause, time, place and amount. c.) Insureds cannot be randomly selected d.) insurance cannot be mandatory

c.) Insureds cannot be randomly selected

The two types of assignments are a.) absolute and partial b.) complete and partial c.) complete and proportionate d.) Absolute and collateral

d.) Absolute and collateral

All of the following could own a group life insurance EXCEPT a.) A debtor group. b.) A group needing low cost insurance c.) A group sponsored by an employer d.) An alumni group.

d.) An alumni group.

Which is TRUE about the cash surrender non-forfeiture option? a.) After the cash surrender, the insured is covered for a grace period of 1 month. b.) The policy remains active for sometime after the policy holder opts for cash surrender. c.) The policy holder receives the original cash value of the policy. d.) Funds exceeding the premium paid are taxable as ordinary income.

d.) Funds exceeding the premium paid are taxable as ordinary income.

Which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement, and inflation? a.) needs approach b.) Blackout approach c.) Lump-sum approach d.) Human life value approach

d.) Human life value approach

Which of the following would be least likely to be considered a legitimate need that would be paid by insurance proceeds? a.) Travel expenses for family to come to the funeral b.) Debt cancellation c.) Day care d.) Vacation travel expenses

d.) Vacation travel expenses

Which is generally true regarding insureds who have been classified as preferred risks? a.) they can borrow higher amounts off of their policies. b.) they can when to pay their monthly premiums c.) they keep a higher percentage of any interest earned on their policies d.) their premiums are lower

d.) their premiums are lower

If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant

with the policy