Life questions

According to the entire contract provision, what document must be made part of the insurance policy?

Copy of the original application

What is a definition of a unilateral contract?

One-sided: only one party makes an enforceable promise

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

Keogh plan

All of the following are consideration in an insurance policy EXCEPT

The cash value of the policy

All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT

Upon conversion, the death benefit of the permanent policy will be reduced by 50%

Which of the following types of policies would NOT be subject to the life insurance solicitation regulation?

Annuities

Which method of dealing with risk is applied when insurance is purchased?

to transfer

In which of the following cases the insured must consent in writing to the life insurance contract?

An employer purchasing life insurance on a key employee

A life insurance policy qualifies as a Modified Endowment Contract (MEC) if the amount of premium paid exceeds the amount that would have provided paid-up insurance in how many years?

7 years

In a noncontributory group policy

100% of eligible employees must participate

When a hearing regarding an insurance matter is requested, all parties must receive

15 days notice

What is the maximum period of time a temporary license can be in force?

15 months

Authorized insurance companies are examined by the Commissioner at least once every

5 years

Long-term care coverage may be available as any of the following options EXCEPT

Endorsement to a health policy

What does "level" refer to in level term insurance?

Face amount

Which of the following would be considered a nonqualified retirement plan?

Split-dollar plan

The LEAST expensive first-year premium is found in which of the following policies?

annually renewable term

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

An insurance agent has received a request for a hearing from the Commissioner. Within how many days must the hearing be held?

30 days

Which of the following is a correct statement about annuities?

Fixed annuities do not provide protection against inflation

A married couple purchase a life insurance policy on their newborn baby. They are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability. Which policy rider should their agent recommend

Payor Benefit

According to the Common Disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?

The primary beneficiary died before the insured

All of the following are general requirements of a qualified plan EXCEPT

The plan must be temporary

All of the following statements regarding continuing education requirements in this state are true EXCEPT

Producers may repeat the same courses to meet the required CE hours for a licensing period.

Which of the following will NOT be included in the buyer's guide?

Specific information about the policy

All of the following statements are true regarding installments for a fixed amount EXCEPT

The payments will stop when the annuitant dies.

Regarding long-term care coverage, as the elimination period gets shorter, the premium

increases

Which of the following statements is TRUE regarding an Agent's Report during the policy application process?

it provides the agents personal observations concerning the proposed insured

If a life insurance policy is purchased by someone who has no insurable interest in the insured, it is considered

A STOLI policy.

As an insurer's field underwriter, a producer has all of the following responsibilities EXCEPT

Issuing policies on behalf of the insurer

In a variable life insurance policy, all of the following assets are held in the insurance company's general account EXCEPT

cash surrender values

An agent is acting ethically in all of the following situations EXCEPT

Always representing the insured.

Insurers must screen all marketing plans to assure that an advertisement does NOT use as the name of an annuity contract any phrase that

Does not include the word "annuity" unless accompanied by other clear language indicating it is an annuity.

According to this state's rules regulating the advertisement of life insurance, advertisement does NOT include which of the following?

Material provided by the insurer for training new agents

An example of an alien insurer doing business in this state is one formed under the laws of

Mexico

An applicant for a disability insurance policy has a heart condition of which they are unaware and therefore they answer no to the question pertaining to heart problems on their application. Their answer is considered to be a

Representation

The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?

The death benefit can be increased by providing evidence of insurability.

Twin brothers are starting a new business. They know it wil take several vears to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?

Joint life

Which of the following settlement options in life insurance is known as straight life?

Life Income

All of the following are true of the Survivorship Life policy EXCEPT

The premium is based on the age of each insured

In contrasting stock insurers with mutual insurers, which statement is true?

Stock insurers are owned by the shareholders and issue nonparticipating policies

In any case where there is a controversy or dispute between the insurance company and the insured, the soliciting agent is the agent of the

company

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

consideration

Which of the following is NOT a standard exclusion in life insurance policies?

disability

Circulating deceptive sales material to the public is what type of Unfair Trade Practice?

false advertising

All of the following are true about variable products EXCEPT

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

To which of the following do replacement regulations apply in this state?

Whole life insurance

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

Fair Credit Reporting Act

Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life. Which settlement option should this policyowner select?

Joint and survivor

In a life settlement contract, whom does the life settlement broker represent?

owner