Life insurance test
Which policy feature would require underwriting
Conversion Renewal Reinstatement Nonforfeiture
Which of the following is a statement that is guaranteed to be true and if any untrue may breach an insurance contract
Indemnity Representation Warranty Concealment
What best describes the surrender charge in a deferred annuity?
It is a rear end load
The amount paid to the policy owner when a life insurance policy is surrendered, is called the
Premium value Cash value Loan value Face value
All of the following are true about universal life, except
The insurance company deduct the cost of insurance on a monthly basis Loans are not permitted The contract will specify the deductions for policy expenses Premiums are flexible within certain guidelines
Misrepresenting a policy to convince someone to replace it is called
Twisting
Klinger has a $5000 life insurance policy issued by life of Toledo in 1948. Klinger is drafted into the army and sent to Korea where he dies in a helicopter crash in 1954. His policy does not contain the war, clause, exclusion, or the accidental death benefit. How much will be paid by the insurer?
$5,000 Zero dollars but the premiums will be refunded to the owner or a state $10,000 $15,000
K and B have a family plan K is insured for $50,000 whole life and B is insured for $25,000 with a level spouse rider to age 65 B dies at age 67. How much money is paid out by the insurer
0 $25,000 $50,000 $75,000
Is self-employed pension HR - 10 has maximum contribution limits of approximately
100% up to $5000 100% up to $50,000 25% up to $5000 25% up to $50,000
A minor can buy life insurance on himself at age 15. to purchase a policy on a third-party one must be 18 but how old is one have to be to name a third-party beneficiary?
15 16 18 21
R. has a 20 year family income plan. He dies after 15 years how many years of income benefits would go to the beneficiary
5
Before any action against an agent's license may be taken the agent must
Be given the opportunity to be heard
If an agent has one insurance license, continue education must be completed in the following manner
Biennially 24 hours
An agent license may be issued to which of the following
Corporation Individual LLC all of the above
All of the following statements concerning dividends are true, except
Dividend amounts are guaranteed in the policy Lower insurance company called generate higher dividends The stem from favorable underwriting experience Favorable investments, results generate higher dividends
If an insured changes, his payment plan from monthly moved to annual mode what happens to the total premiums paid?
Doubles Increases Decreases Stays the same
The commissioner teachers can do all of the following, except
Examine insurers in person or through a representative Suspend and agents license, while an investigation is pending Wave policy provisions, in favor of an insured And shoot administrative orders to carry out the insurance laws
The commissioner of insurance can do all of the following, except
Hold hearings Revoke a producer license prior to a hearing Subpoena a witness Regulate the business practices of an insurer
G is on the way to the office to turn in an insurance application that he completed last night he suddenly discovers that the applicant made out the check to the agent which of the agent do?
Immediately return the check to the applicant
Under which of the following types of receipts, is it that coverage begins immediately for a specified length of time, even if the applicant is found later to be uninsurable
Insured ability, conditional receipt Premium receipt Unconditional binding receipt Approval conditional receipt
If an agent is guilty of commingling, the first thing, the DOI will probably do is
Issue a cease and desist order
Which of the following is not an essential element of an insurance contract?
Legal purpose Incompetent parties Consideration Agreement (offer and acceptance)
In order to sell in equity indexed life policy, what is required by the agent
Life license only Securities license only Life and securities license Life or securities license
An annuity that provides a lifetime income with a guaranteed return of principal, regardless of whether the annuitant lives or dies, is known as
Life with refund
All of the following are true for resident North Carolina agents EXCEPT :
Maintain an office in North Carolina
A licensee decides to terminate his residency in this state, which of the following would be an appropriate action
No action, the license will administratively expire Notifying the NAIC within 60 days Notifying the commissioner within 10 days Delivering the license to the commissioner within 30 days
Which of the following would obtain a temporary license
Nonresident agent who recently moved to North Carolina
A Keogh HR-10 is a type of retirement plan for
Self employed professionals
Which of the following types of risk will result in the highest premium
SubStandard risk
The responsibility of making certain that an application for insurance is filled out completely correctly in to the best of his or her knowledge is the responsibility of
The agent or producer The beneficiary of the applicant The insurance company The applicant
An insurer is attempting to determine insured ability of an applicant and decides to obtain medical information from several different sources which entity must be notified of this investigation
The applicant The commissioner of insurance The medical examiner The state department of insurance
The purpose of reinstatement provision is
To determine the process for reactivating coverage once a policy has lapsed
A long-term disability policy provides benefits for
Two years Five years To age 65 The time specified in the contract
An individual has just borrow $10,000 from his bank. On a five-year note. The note is due in installments what type of life insurance policy would be best suited to the situation
Universal life Whole life Decreasing term Level term
Agent Z takes an application for a policy and accept a check for the first premium application and check our mail to the insurer who discovers the check is not signed when will coverage for this policy go into effect
When that policy is issued delivered, and premium is paid
Once a life insurance policy is reinstated the contestability period
Will apply for two years
Gilligan has a $10,000 whole life policy with $1300 of cash value when he disappears in a storm is insure switch is the policy to reduced paid up insurance of $3400. 5 years later he parishes in the rescue attempt how much life insurance benefit will go to his family
Zero dollars $1300 $3400 $10,000
An issue or has just made the news because it is insolvent Chris has had a $1 million policy with the company for five years if Chris were to die what is the most that would be paid out by the guaranty association?
$300,000
Be purchased a $50,000 20 pay life policy with the AD&D the rider in 1999. He died of cancer 10 years later how much benefit was paid to the beneficiary
$50,000
If someone dies as a result of military activity, the claim is settled in the following manner
A return of all unearned premiums
All of the following might be issued on a group basis, except
Accidental death and dismemberment Disability Key person Medical expense
Which of the following is a dividend option?
Increasing term Cash surrender Paid-up additions Vanishing premiums
Kim owns a 20 pay life policy that was purchased at age 45. The cash value in the face value will be equal at age.
100
When considering the purchase of a whole life policy, the applicant as the difference in cash accumulation between a 20 pay life policy and a straight life policy which of the following statements is correct
20 pay will accumulate faster
A life insurance policy was originally issued at age 35 as a double protection policy. If the initial death benefit was $90,000 how much of the death benefit is permanent
45,000
What qualifies an individual to contribute to an IRA
Any income Earned income Investment income Retirement income
Which of the following is not included on part one of the application for life insurance
Applicants address Applicants medical history Applicants gender Applicants occupation
The administrator of a reciprocal insurer who tracks membership and collects premiums from the members is the
Attorney in fact
All of the following statements are true about a credit life program, except
Benefits are paid to the borrowers beneficiary The amount of insurance permissible is limited per borrower Premiums are usually paid by the borrower Benefits are paid directly to the creditor
The provision that prohibit to ensure from refusing to pay claim after a specified time, is the
Incontestability clause
An agent has just learned that his client is five years older than indicated on the policy application the agent should
Notify the home office, so the policy may be adjusted
With a juvenile life policy which provision waves premiums temporarily, should the owner die, or become disabled
Payor provision
Annuities may be classified in the following ways, except
Premium mode Number of annuitants Face amount Settlement options
Discrimination between individuals of the same class in the amount of premiums or rates charge for any policy of insurance or in the benefits payable there on, or in any of the terms or conditions of such policy, or in any manner whatsoever is
Prohibited by law
Which of the following types of insurance covers the whole family in a single contract?
Survivorship policy Whole life policy Family protection policy Family income policy
In insurance transactions, who does the broker represent
The agent The applicant The agency The insurer
All of the following are true about universal life, except
The insurance company to ducks the cost of insurance on a monthly basis Lump sum death benefits are taxable income to the beneficiary The contract will specify the deductions for policy expenses No premium would be required as long as there is enough to cover the monthly deductions
Which of the following is true about examination of agent records by the DOI
They may be disclosed at any time
Please ensure has made all of the decisions regarding the provisions included in her policy. She finds an object of all provision, and wants to negotiate it with her insurer, but is not allowed to do so. Her only options are to reject the policy because the policy is written on a take it or leave it bases which contract element does this describe?
Unilateral Conditional Dictatorial Adhesion