LIFE ?s answers
The rule relating to insurance policy readability applies to which of the following?
All insurance policies issued in this state.
What type of insurance policy may be used to fund a buy-sell agreement?
Any form of life insurance
Which of the following statements is an accurate comparison between private and government insurers?
Private insurers may be authorized to transact insurance by state insurance departments.
All of the following are TRUE regarding convertibility option under a term life insurance policy except
Upon conversion, the death benefit of the permanent policy will be reduced by 50%.
The commissioner may require a surplus lines agent or broker to supply a bond of up to...
$100,000
Circulating deceptive sales material to the public is what type of Unfair Trade Practice?
False advertising
When does an agent's license expire?
On the last day of the month of the agent's birth every other year.
Which of the following is NOT a characteristic of an insurable risk?
The loss must be catastrophic
In an Adjustable life policy all of the following can be changed by the policy owner EXCEPT
The type of investment
What is the purpose of establishing the target premium for a universal life policy?
To keep the policy in force.
What type of life insurance policy allows the policyowner to pay more or less than the planned premium?
Universal life
Producers are permitted to share or split commissions, providing that...
both are properly licensed for the line of insurance.
An insurance producer who by contract is bound to write insurance for only one company is classified as a/an...
captive agent
Units with the same or similar exposure to loss are referred to as...
homogeneous
Annually renewable term policies provide a level death benefit for a premium that...
increases annually
Which of the following is a licensee able to place insurance with unauthorized insurers?
surplus lines agent
All of the following are true regarding a decreasing term policy EXCEPT...
the payable premium amount steadily declines throughout the duration of the contract.
All of the following are true about variable products Except...
the premiums are invested in the insurer's general account.
If a person violates an order specifically issued to him or her, that person may be required to pay a fine up to...
$1000
What is the maximum penalty for habitual willful noncompliance with the fair credit reporting ACT?
$2,500
What is the maximum annual billing for an insurer?
1% of net premiums
insurer can receive compensation for insuring himself only if he has placed insurance on other individuals with the same insurer with the last....
12 months
An insurer terminates an agent's appointment. Within how many days of termination must the intermediary be notified?
15 days
Which of the following is true regarding the notice of the insured's right to file a complaint?
Every insurer must provide such notice to its policyholders when the policy is issued.
The death benefit under the Universal life option B
Gradually increases each year by the amount that the cash value increases.
A universal life policy has two types of interest rates that are called...
Guaranteed and Current
A return of premium term life policy is written as what type of term coverage?
Increasing
The type of term insurance that provides increasing death benefits as the insured ages is called...
Increasing term
Which of the following is true regarding state regulations for record maintenance?
Insurer's records may be maintained electronically.
If a life insurance policy increases significantly in face amount (death benefit) when the insured reaches a specified age, What type of policy is this?
Jumping juvenile policy ( increases by about 5x usually at age 21).
Which of the following is an example of limited pay life policy?
Life Paid-up at Age 65
A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as...
Survivor protection
Which of the following may not be included in an insurance company's advertisement?
That policies are covered by a state insurance security fund.
All of the following statements concerning the use of life insurance as an executive bonus are correct except...
The policy is owned by the company (it is owned by the employee, not the company)
Which of the following is correct regarding a whole life policy?
The policyowner is entitled to policy loans.
A producer who fails to segregate premium monies from his own personal funds is guilty of...
commingling
After the original hearing and final order is issued, an aggrieved person may request a rehearing within...
20 days
How many hours of prelicensing education approved by the commissioner must each applicant complete?
20 hours
An intermediary must complete how many credit hours of continuing education every year 2 years??
24 credit hours
within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
3 days
What is the maximum number of insurance risks an agent can place with a single insurer in one calendar year if the agent is not listed with that insurer?
5
The commissioner is required to examine every domestic insurer and every licensed rate service organization every...
5 years
required minimum score on the Flesch ease test for Medicare supplement policies is...
50
If the commissioner issues an order and the person who is the object of the demands a hearing within 30 days, within how many days must the hearing be held?
60
an insurance policy is considered a new policy is it has been in effect for what maximum time period?
60 days
What documentation grants Express authority to an agent?
Agent's contract with the principal
Viatical Settlement broker
Arranges the agreement between the viatical settlement purchaser, provider, and viator. The broker works on behalf of the viator in this agreement.
what does liquidity refer to in a life insurance policy?
Cash values can be borrowed at any time
All of the following could be considered rebates if offered to an insured in the sale of insurance except...
Dividends from a mutual insurer.
The Gram-Leach-Bliley Act was passed to...
Protect private customer information filed with a financial institution.
In terms of insurance, an intermediary is....
a person who helps another person place insurance or annuities.
A domestic insurer issuing variable contracts must establish one or more
separate accounts
Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to
10 years
Applicants must complete a crime information bureau form within how many days before taking their state exam?
180 days
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
An applicant wants to buy a policy that has a cash value element, which type should she buy?
Permanent
If someone wants to buy a life insurance policy that will provide lifetime protection against premature death, what type of life insurance policy should that person buy?
permanent
All of the following are examples of risk retention EXCEPT...
premiums
collusion
secret agreement or cooperation; agent and policyholder act together to defraud an insurer.
All of the following are characteristics of group life insurance except...
Premiums are determined by the age, sex and occupation of each individual certificate holder.
The least expensive first year premium is found in which of the following?
Annually Renewable Term
