Life Insurance

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?

Level term

What is the maximum percentage of the face amount of a life insurance policy that can be paid in an acceleration of benefits?

75%

To which of the following policies would the state regulation on illustrations NOT apply?

An individual variable life policy

Which of the following products provides income for a specified period of years or for life, and protects a person against outliving his or her money?

Annuity

Which of the following best describes fixed-period settlement option?

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

An agent selling variable annuities must be registered with

FINRA

Which policy component decreases in decreasing term insurance?

Face amount

Fiduciary responsibilities apply in which of the following situations?

Handling client premiums

Which of the following statements is TRUE concerning whole life insurance?

Lump-sum death benefits are not taxable.

During a sales presentation a producer intentionally makes a statement which may mislead the insurance applicant. This describes

Misrepresentation.

The advantage of qualified plans to employers is

Tax-deductible contributions.

According to the life insurance replacement regulations, which of the following would be an example of policy replacement?

A policy is reissued with a reduction in cash value.

Which of the following is an example of a producer's fiduciary responsibilities?

A producer promptly forwarding premiums to the insurance company.

Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be

Adjusted to the insured's age at the time of renewal.

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.

The Director issued a written notice about a hearing for a business entity. The hearing is scheduled for May 1st. The affected business entity should receive the notice no later than

April 20th.

If an annuitant dies before annuitization occurs, what will the beneficiary receive?

Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount

Which of the following is an IRS qualified retirement program for the self-employed?

Keogh

Which Universal Life option has a gradually increasing cash value and a level death benefit?

Option A

Of the following persons which one would be required to hold a producer's license?

Person soliciting policies of insurance

Which of the following is TRUE about nonforfeiture values?

They are required by state law to be included in the policy.

In insurance policies, 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. What contract element does this describe?

Unilateral

When is the earliest a policy may go into effect?

When the application is signed and a check is given to the agent

An employee quits her job where she has a balance of $10,000 in her qualified plan. The balance was paid out directly to the employee in order for her to move the funds to a new account. If she decides to rollover her plan to a Traditional IRA, how much will she receive from the plan administrator and how long does she have to complete the tax-free rollover?

$8,000, 60 days

Which of the following situations would describe a proper handling of premiums by a producer in this state?

A producer who holds premiums for 15 days establishes a Premium Fund Trust Account.

All of the following are duties and responsibilities of producers at the time of application EXCEPT

Change any incorrect statement on the application by personally initialing next to the corrected statement.

Both Universal Life and Variable Universal Life have a

Flexible premium

Which of the following is true about the premium on the children's rider in a life insurance policy?

It remains the same no matter how many children are added to the policy.

A life insurance policy does not have a war clause. If the insured is killed during a time of war, what will the beneficiary receive from the policy?

The full death benefit

Which of the following would be considered an unfair claims settlement practice?

A claims adjuster advises the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered

How often is a resident insurance producer required to pay license fees?

2 years

All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?

Lower

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

An unfair trade practice.

Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?

Family term rider

All of the following are true about variable products EXCEPT

The premiums are invested in the insurer's general account.

The 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.

Methods used to pay the death benefits to a beneficiary upon the insured's death are called

Settlement options.