Life insurance final

A broker no matter where you're located may act as a broker for a life insurance producer in Hawaii so long as a producer has been license to sell insurance for at least... A. 1 year B. 2 years C. 3 years D. 5 years

A. 1 year

Which of the following protects the insured from an unintentional policy lapse due to nonpayment of premium? A. Automatic premium Loan B. Extended term C. Reinstatement D. Reduced paid up option

A. Automatic premium loan

When a whole life policy lapses or is surrendered prior to maturity the cash value can be used to A. Pay back all premiums owned plus interest B. receive payments for a fixed amount C. purchase a single premium policy for a reduced face amount D. purchase a term writer to attach to the policy

C. Purchase a single premium policy for a reduced face amount

An insurer must appoint a licensee before she is authorized to transact insurance business the insurer must file a notice of appointment within

15 days from the date of the first insurance application is submitted

And authorize foreign or alien insurer requesting a name change must give the commissioner how much notice

30 days

For how long are licensees required to keep records of continuing education completion?

4 years

A straight life policy has what type of premium?

A level annual premium for the life of the insured

Which of the following is true about credit life insurance? A. Debtor is the policy beneficiary B. Creditor is the policyowner C. Debtor is the annuitant D. Creditor is the insured

B. Creditor is the policy owner

Which of the following is not the consideration in a policy? A. The premium amount paid at the time of application B. The promise to pay covered losses C. The application given to a prospective insured D. Something of value exchanged between parties

C. The application given to a prospective insured

All fees charges commissions and other considerations charged for insurance must be stated in the?

Premium

A key person insurance policy can pay for which of the following A. Worker's Compensation B. Hospital bills of the key employee C. Cost of training a replacement D. Lots of personal income

C. Costs of training a replacement

The least expensive first year premium is found in which of the following policies? A. Increasing term B.decreasing term C.level term D. annually renewable term

D. Annually renewable term

Which of the following types of insurance policies is most commonly used in credit life insurance

Decreasing term

Partners in a business enter into a Byselle agreement to purchase life insurance which states that should one of them die prematurely the other would be financially able to buy the interest of the deceased partner what type of insurance policy may be used to find this agreement?

Any form of life insurance

Which of the following settlement options in life insurance is known as straight life? A. Life with period certain B. Fixed amount C. Life income D. Single life

C. Life income

Which statement is true regarding the proceeds of a life insurance policy? A. The lawful beneficiary is entitled to all policy benefits free from all claims of creditors or representatives of the insured's estate B. No proceeds can be paid to the lawful beneficiary unless he is at least 18 years old C. The beneficiary must have an insurable interest in the insured D. The lawful beneficiary receives the proceeds after all creditors of the estate have been paid

A. The lawful beneficiary is entitled to all policy benefits free from all claims of creditors or representatives of the insured's estate

Which of the following statements about reinstatement provision is true? A. It guarantees the reinstatement of a policy that has been surrendered for cash B. It requires The policy owner to pay all overdue premiums with interest before the policy is reinstated C. It permits reinstatement within 10 years after a policy has lapsed. D. It provides for reinstatement of a policy regardless of the insured's health

B. It requires the policy owner to pay all overdue premiums with interest before the policy is reinstated

What's does "liquidity" refer to in a life insurance policy?

Cash values can be borrowed at any time.

Which of the following best describes fixed period settlement option? A. Only the principal amount will be paid out within a specific period of time B. The death benefit must be paid out in a lump sum within a certain time period C. Income is guaranteed for the life of the beneficiary D. Both the principal and interest will be liquidated over a selected period of time

D. Both the principal and interest will be liquidated over a selected period of time

Under spouses and dependent coverage legislation in Hawaii all of the following statements are true except A. The spouse may need to provide evidence of insured ability in order to receive coverage B. Dependent children may be covered up to the age of 23 C. The spouse and dependent children may be covered for the same amount as the covered employee D. Premiums must be paid in full by the covered employee

D. Premiums must be paid in full by the covered employee

If an insurer issued a policy based on the application that had unanswered questions which of the following will be true? A. The policy will be interpreted as if the insured did not have an answer to the question B. The policy will be void C. The insurer may deny coverage later because of the information missing on the application D. The policy will be interpreted as if the insurer waived its right to have an answer on the application

D. The policy will be interpreted as if the insurer waived its right to have an answer on the application

If a life policy allows the policy owner to make periodic additions to the face amount at standard rates without proving insurability the policy includes a A. Guaranteed insurability rider B. Paid up additions option C. Cost of living provision D. Nonforfeiture option

Guaranteed insurability rider

Which nonforfeiture option provides coverage for the longest period of time?

Reduced Paid-Up

Which type of life insurance policy generates immediate cash value

Single Premium

Which type of life insurance policy allows the policy owner to pay more or less than the planned premium?

Universal Life