life insurance

which of the following is a provision interest-sensitive life policy which allows the policy ownder to withdraw the policys cash value interest free?

partial surrender

an insured has a 5 year renwable term life insurance policy. upon exercising the renewable privilege, the insured must

pay an annual premium that may be higher

classes

per-stripes= heirs (stripes of hair)

which of the following is the time of period after which is life insurance policy is considered incontestable

period ends after 2 years

statements by an applicant concerning personal health history, occupation, abd hobbies are reffered to as

personal charactersitic

who has a right to the noforfeiture values in an annutity

policy owner

generally if an application is not prepaid, the effective date of coverage begins on the date the

producer delivers the policy and collects the premium

a reinstatment clause outlines conditions that include

proof of insurability

which of the following is not true about converting a group policy to an individual policy?

proof of insurability will be required

what is the purpose of the automatic premium loan rider?

protects policyowner against an unintentional lapse of coverage

a producer offers a potential insured 5% of their commission as an incentive to buy the insurance is guilty of

rebating

the withdrawal of a portion of the cash value in a whole life policy will result in which of the following

reduced death benefits

Which nonforfeiture option allows the policy owner to purchase less coverage for life.

reduced-paid option

which of the following dividend option allows a policy owner to use the dividend to pay all or part of the next premium due on policy

reduction of premium dividend

term life insurance differs from permamnent life in the most that most often, term life insurance

remains in force for a specific period of time

which of the following is not an example of a producer duties

represent the insured

if a proucer is found guilty of signing an application name, the commisioner can do all of the following except

require the producer to tell the client

a method of handling risk such as having a sprinkler system installed in a building

risk reduction

which of the following in a life insurance contract written on the life of an individual

single life insurance

insurance applicants with an average life expectancy who represent the same risk classification as the majority of people with similar lifestyles are considered which type of risk

standard

illegal inducement

stock, dividend profit, value not mentioned, favor or advantage in dividends

in which of the following policies is the insured covered to age 100 and the owner pays a level premium throughout the duration of the policy

straight whole life policy

it is acceptable for a person to solicit, negotiate, and sell insurance when

submitted an application and received an insurance producer license

individual who is not acceptable by an insurer at standard rates because of

substandard risk

Non-Qualified Plans

tax free after 5 years can discriminate not by irs contribution: not tax deductible

generally what are the tax implications of life insurance proceeds to the beneficiary

tax free at the time of the insureds death

If the annuitant dies before the annuity start date, the interest earned is

taxable

which of the following changes to an adjustable life policy require proof of insruability?

term coverage to whole life coverage increase the death benefit

what type of policy is used to add additional insured riders

term life

in addition to actual policy, an entire contract includes which of the following

the application

which of the following is a charactersitic of level permium term life insurance

the cost of insurance is avereged throughout the lufe of the contract

which of the following characteristics applies to a modified life policy?

the face amount of the policy will automatically increase after the policy is in force for 5 years

all of the following are true concerning group life policies except

the group must be formed for insurance purposes

each life insurance policy offers a 30 day grace period, this prevents the policy from being cancelled if payment is recieved late, but within 30 days the premium is due

the late premium will be subtracted from the benefit amount

m has 200,000 whole life policy with a 50,000 cash value, she wishes to borrow 30,000 for

the loan is not repaid, the net death benefit is reduced

rogers life insurance representative advised he buys a whole life policy for all of the following reasons except

the policy premiums will diminish over time

in contract law, legal purpose refers to the favt that

the reason for entering into a contract must be lawful

if the insured and the primary beneficiary are in the same accident, the policy proceeds will be paid

to the contingent beneficiary of the insured

human life value approach measured which of the following

total lifetime family needs

which of the following the form of risk is an to set aside.. funds be to self insuring

transfer

what information is not required to be in a credit life insurance contract

type of insurance being purchased

which activity does not require an insurance producers license

underwriting

which of the following policies has a guaraunteed interest rate with the possibility to earn an interest rate higher than the guaranteed rate

universal life

all of the following can increase the death benefit except

waiver of premium

if an insurer determined the insured is totally disabled, the policy owner us relived of paying premiums as long asthe disability continues

waiver of premium rider

which of the statements is true of a payor benefit rider

waives premiums on a juvenile policy if the policy owner becomes totally disabled or dies

differed commissions may be paid to a person who sold an insurance policy when the person

was a licensed producer at the time of the sale

under which circumstance can a person obtain a portion of their life insurance benefit without federal income tax liability

when the policyowner has elected a nonforfeiture option

all of the following are examples of flexible life insurance policies except

whole life

consumer report

written statement regarding credit, character, reputation or habit (C.C.R.H)

insurance producer shall not act as an agent of an insurer until that prodicer has become

an appointed agent of that insurer

the period during which an annuitant beginsto receive income payments from an insurer is known as

annuitization period

all of the following are purposes of an annutiy except

annuity is designed to create an estate

which of the following gifts from a producer would not be considered rebating>

$5 pen

an early withdrawl before age 59 1/2 from a qualified plan is taxed an additional

10%

after the final disposition of the matter, and insurance producer

30

which kind of retirement plan can 1500 employee for profit corporation establish

401k

a licensee who informs an insured an inaccurate terms, benefits, or advantages of any policy is committing

misrepresentation

the entity that has the power to revoke a producers insurance license is the

naic

a licensee can disclose a consumer's policy account number to all of the following except

nonaffiliated third party

in michigan insurance code chapter 45, insurance fraud defines financial loss as all of the following except

additional premiums

group life insurance protects from

adverse selection

misstatment of age/gender

allowed to adjust your benefits to fit the correct age/gender

an owner of a life insurance policy may transfer ownership temporarily with

a collateral assignment

which od the following individuals is required to be licensed as an insurance counselor in the state of michigan

a person providing insurance advice to a person or business for a fee

upon the death of an insured individual, what does life insurance guarantee to deliver to the beneficiary

a specific sum of money

is a premium is NOT submitted with a life insurance application producer must have the applicant sign which of the following

a statement of good health

insurers intentional relinquishment of a known right is

a waiver

qualified plan

approved by irs favorable tax treatment at least 59.5 yrs must by 70.5 yrs contribution tax deductible earning=tax deffered 10% early 6% excess

what is insurable interest required?

at time of application

nonforfeiture values are associated with which of the following?

cash value

which of the following is consideredd an acceptable personal use of an annuity

college education funding

a policy owner can cancel an individual life or health insurance policy, which is not a replacement policy by

contacting the insurer by phone on or before the 10th day of receiving the policy

estate creation

create estate by earnings, savings, purchase life insurance=creates an immediate estate

if an annuitant is making premium payments on a periodic which type of annuity

deffered

which of the following is an example of an unfair claim settlement practice?

delaying the settlement of claims in which liabilty has become clear

all of the following would trigger an accelerated death priceeds to remain with the insurer and the earnings to be paid to the beneficiary

diagnosed with terminal illness

annuities owned by corporations

do not accumulate on a tax-free basis

annuity products linked to a market-related index arecalled

equity-indexed annuity

when individuals purchase life insurance to enable their heirs to pay estate taxes, this is called

estate conversation

licensees who are required to take continuing education must

ethics

which type of annuity guarantees a level benefit payment

fixed

term life insurance offers pure protection

for a specific period of time

a deliberate lie by an insured to the insurer to obtain a lower premium is an example of

fraud

which of the following is not an illegal document?

giving the insured an article of merchandise printed with the producers name costing $$

which rider would allow additional insurance to be purchased at specific dates or events, without additional underwriting?

guarunteed insurability

which approach considers the future needs of the survivors in determining amounts of life insurance?

human life value approach

ABC insurance agency is entering each applicant who purchases insurance through their agency into drawing to win a free trip

illegal inducment

what type of authority is given by an insurer to a producer but NOT formally communicated?

implied

For a contract to be valid

include an offer and acceptance

when a beneficiary inherits a traditional ira, which of the following is true about taxation when the money is withdrawn? the beneficiary pays

income tax

which statment is not a characteristic of a group life insurance plan?

individual underwriting

which is considered as an expense factor in an insurance premium

interest from investments

how does a fixed annuity protect the annuitant from flucuating economic conditions

interest is calculated on the basis of a current rate and a minimum guarauntee

the unfair trade practice of using threat or force to restrict fair trade in the transaction of insurance is called

intimidation

which of the following is used by the underwriting department on info applicants character, reputation and habits

investigative consumer reports

which of the following statements best describes a single premium cash value policy

it requires one payment to make the policy paid up

limited pay whole life

level annual premium level guaranteed death benefit to age 100 paid up well before 100 endows @ face amount

which is the simplest type of life insurance plan that provides protection

level term life insurance

which type of life insurance policy is characterized by premiums that are fully paid within a stated period, after which no further premiums are required

limited payment insurance